Solv Protocol says exploit drained $2.7 million from Bitcoin yield vault

Bitcoin-centric DeFi platform Solv Protocol said there was a “limited exploit” of one of its BRO token vaults, allegedly affecting less than 10 users. 

In an X post on Thursday, the team said it would cover the losses of 38.0474 SolvBTC, worth about $2.7 million at the time of the attack. 

Solv Protocol is an onchain Bitcoin reserve aimed at turning BTC into a productive asset. SolvBTC, the flagship wrapped asset in Solv's suite of treasury and capital-market products, enables retail and institutional investors to earn yield on their BTC holdings.

The protocol also features structured yield vaults called Bitcoin Reserve Offerings (BRO).

According to security firm Decurity’s automated bot, the attacker was able to abuse a double-minting flaw in a 'BitcoinReserveOffering' contract 22 times, turning 135 BRO into 567 million BRO, which were then exchanged for about 38 SolvBTC. 

“All other vaults and user funds remain secure and unaffected. We're actively investigating with top security partners and have taken steps to prevent any recurrences,” Solv said on X, noting it worked with Hypernative Labs, SlowMist, and CertiK security firms. 

Solv is offering the exploiter a 10% white hat bounty to return the funds. 

There is over $508 million total value locked in SolvBTC. Solve refers to itself as the largest onchain bitcoin reserve, with a BTC balance of 24,226 coins, according to its website.

Last year, Beijing-based Zeta Network Group (NASDAQ: ZNB) said it was looking to raise $230 million in a private placement as it built out a crypto treasury containing BTC and SolvBTC. 

Solv counts Binance Labs, Blockchain Capital, and OKX Ventures, among others, as backers.