Nubit founder Yu Feng tweeted that many protocols in the BTCFi ecosystem are using offline pre-signed transactions to fake lockups, which does not actually lock Bitcoin on the mainnet, but rather creates a false impression of it 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 actually locked anywhere. This operation has caused false inflation of TVL and serious trust issues.
The Nubit founder proposed two solutions: one is to truly put transactions on the chain and lock funds through a Bitcoin script address; the other is to use zero-knowledge proof design to make lockups transparent and secure, avoiding double spending risks.
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