According to Foresight News, Nubit founder Yu Feng tweeted that many protocols in the current BTCFi ecosystem are faking lock-ups through offline pre-signed transactions. This method does not actually lock Bitcoin on the mainnet, but gives the 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 false inflation of TVL and serious trust issues.
Nubit founder proposed two solutions: one is to truly put transactions on-chain by locking funds through Bitcoin script addresses; the other is to design using zero-knowledge proofs, making the lock-up both transparent and secure, avoiding double-spending risks.
