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 rather creates 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 has led to a false inflation of TVL and serious trust issues. The Nubit founder proposed two solutions: first, to truly put transactions on-chain by locking funds through Bitcoin script addresses; second, to design a zero-knowledge proof system to ensure that the locking is both transparent and secure, avoiding double-spending risks.

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