Bitcoin Ecosystem Faces Scrutiny Over TVL Data Authenticity

According to BlockBeats, recent debates have emerged within the Bitcoin ecosystem regarding the authenticity of Total Value Locked (TVL) data. Issues such as false statistics and double counting have raised concerns, undermining user trust and the industry's credibility. In response, several BTC ecosystem projects, including Nubit, Nebra, Bitcoin Layers, and Alpen Labs, have released a 'Proof of TVL' report. This report highlights the lack of transparency in the BTCFi sector and calls for higher standards in asset verification, proposing open-source TVL verification tools to enhance transparency. The report indicates that many existing BTCFi projects inflate TVL figures by reusing the same assets or fabricating locked amounts. This practice misleads users and poses a threat to the long-term development of the Bitcoin ecosystem. The report urges a return to 'genuine locking' of assets rather than relying on misleading numerical tactics. Nubit has introduced an open-source locking verification solution centered on BitVM, utilizing native Bitcoin technologies like zero-knowledge proofs to ensure the verifiability of each BTC's status, thereby eliminating the possibility of TVL data manipulation. "TVL should not be a cover for digital deception; Bitcoin must stand for transparency and trust," stated the Nubit team. They emphasized that the future development of the Bitcoin ecosystem must begin with combating TVL fraud and promoting industry-wide data transparency. The BTCFi industry is undergoing a transformation, with the exposure of TVL falsification being just the initial step. Nubit aims to leverage technology and community efforts to unveil disguises and restore transparency and trust in Bitcoin finance.