#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 "locked" illusion. Users can submit multiple pre-signed transactions with the same UTXO, allowing multiple protocols to count it as TVL. In reality, this Bitcoin is not truly 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 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.
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. They do not truly lock Bitcoin on the mainnet, but create the illusion of "locked assets" to inflate TVL. Users can submit multiple pre-signed transactions using the same UTXO, allowing multiple protocols to count it towards TVL, while in reality, the Bitcoin is not truly locked anywhere. This manipulation leads to inflated TVL and raises 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 locking transparent and secure, avoiding double-spending risks. This indicates that there are risks of using technical loopholes to forge assets in the current BTCFi ecosystem. It is necessary to strengthen regulation and technological innovation to ensure user funds safety and maintain the healthy development of the 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, and using zero-knowledge proof design to make locking both transparent and secure, avoiding double-spending risks.