#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 instead creates a false impression of "locked assets" to inflate TVL. Users can submit multiple pre-signed transactions using 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 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, making the locking process both transparent and secure, avoiding double-spending risks.
Ace Hot Topic Analysis
Analysis
Recently, the issue of fake locked assets in Bitcoin ecosystem projects 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 creates an illusion of "locked assets." Users can submit multiple pre-signed transactions using the same UTXO, allowing multiple protocols to count it as TVL, while in reality, the Bitcoin is not actually locked anywhere. This manipulation has led to inflated TVL and serious trust issues. Yu Feng proposed two solutions: one is to truly put the transaction on the chain and lock funds through Bitcoin script addresses; the other is to use zero-knowledge proof design, making the locking transparent and secure, avoiding double-spending risks. This fraudulent behavior not only harms user interests but also negatively impacts the healthy development of the entire Bitcoin ecosystem. Therefore, it is necessary to strengthen regulation of BTCFi projects and encourage the adoption of more secure and reliable locking mechanisms to maintain the healthy development of the Bitcoin ecosystem.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin ecosystem projects have a problem with fake locking through offline pre-signed transactions, leading to inflated TVL.
This fake locking method does not actually lock Bitcoin on the mainnet, but gives the illusion that it is locked.
Users can submit multiple pre-signed transactions with the same UTXO, allowing multiple protocols to count it as TVL, but in reality, the Bitcoin is not actually locked anywhere.
Solutions include actually putting the transaction on-chain, locking funds through Bitcoin script addresses, or using zero-knowledge proof design to make locking both transparent and secure, avoiding double-spending risks.