#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 creates the illusion of "locked assets," leading to inflated TVL and trust issues. Users can submit multiple pre-signed transactions with the same UTXO, allowing multiple protocols to count it towards their TVL, while in reality, the Bitcoin is not truly locked anywhere. To address this issue, Yu Feng proposed two solutions: one is to truly put the transaction on-chain, locking 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 the Bitcoin ecosystem has sparked heated discussions. Yu Feng, founder of Nubit, pointed out that many BTCFi projects have been forging 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 the 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 and regulatory measures to ensure the safety of user funds and the healthy development of the ecosystem.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Many BTCFi ecosystem projects forge locked positions through offline pre-signed transactions, which do not actually lock Bitcoin on the mainnet, but instead give the appearance of 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 practice has led to inflated TVL and serious trust issues.
Solutions include actually putting transactions 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.