#Bitcoin Ecosystem Projects Lock-up Fraud#
Hot Topic Overview
Overview
Recently, the issue of fake locked assets in the Bitcoin ecosystem has drawn attention. Yu Feng, founder of Nubit, pointed out that many BTCFi projects forge locked assets through offline pre-signed transactions. This method does not truly lock Bitcoin on the mainnet, but rather creates the illusion of locking through a "look-like-locked" approach to inflate TVL. Users can submit multiple pre-signed transactions using 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 inflated TVL and serious trust issues. Yu Feng proposes two solutions: one is to truly put the transaction on-chain and lock funds through Bitcoin script addresses; the other is to use zero-knowledge proof design to make locking transparent and secure, avoiding double-spending risks.
Ace Hot Topic Analysis
Analysis
Recently, the issue of fake locked assets in the Bitcoin ecosystem has drawn attention. Yu Feng, founder of Nubit, pointed out that many BTCFi projects forge locked assets through offline pre-signed transactions. This method does not truly lock Bitcoin on the mainnet, but rather creates an illusion of "locked assets." Users can submit multiple pre-signed transactions with the same UTXO, allowing multiple protocols to count it as TVL, while in reality, the Bitcoin is not actually locked anywhere. This practice has led to inflated TVL and serious trust issues. Yu Feng proposed two solutions: one is to truly put the transaction on-chain and lock funds through Bitcoin script addresses; the other is to use zero-knowledge proof design, making the locking process both transparent and secure, avoiding double-spending risks. This indicates that there are serious vulnerabilities in the current BTCFi ecosystem, which need to be addressed through technical means to ensure the safety and transparency of user funds.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin
ecosystem
projects
exist
through
offline
pre-signed
transactions
fake
locking
problem
leading
to
TVL
false
inflation
This
fake
locking
method
has
not
truly
locked
Bitcoin
on
the
mainnet
but
gave
a
look
like
locked
illusion
Users
can
use
the
same
UTXO
to
submit
multiple
pre-signed
transactions
let
multiple
protocols
count
it
as
TVL
but
in
fact
this
Bitcoin
has
not
really
locked
anywhere
Solutions
include
truly
on-chain
transactions
through
Bitcoin
script
address
locking
funds
and
using
zero-knowledge
proof
design
to
make
locking
both
transparent
and
secure
avoid
double-spending
risk