Nubit founder Yu Feng tweeted that many protocols in the current BTCFi ecosystem are faking locked positions through offline pre-signed transactions. This method does not truly lock Bitcoin on the mainnet, but instead creates a false appearance of being 'locked.' 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 severe trust issues. The Nubit founder proposed two solutions: one is to truly put the transaction on-chain and lock the funds through Bitcoin script addresses; the second is to design a zero-knowledge proof to make the locking process both transparent and secure, avoiding double-spending risks.

#pepe