According to Foresight News, Nubit founder Yu Feng tweeted that many protocols in the current BTCFi ecosystem forge locking by using offline pre-signed transactions. This method does not truly lock Bitcoin on the mainnet but creates an illusion of being 'locked up'. Users can submit multiple pre-signed transactions with the same UTXO, allowing multiple protocols to count it as TVL, but in reality, this Bitcoin is not truly locked anywhere. This operation leads to a false inflation of TVL and serious trust issues.
The founder of Nubit proposed two solutions: first, truly putting transactions on-chain by locking funds through Bitcoin script addresses; second, designing with zero-knowledge proofs to make the locking mechanism both transparent and secure, avoiding double-spending risks.
