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Fungibility Challenges in BitVM2-based bridge: Fiamma

The Fiamma team published an article addressing fungibility challenges in its BitVM2-based bridge, such as inflexible PEG-OUT amounts and asset locking. They propose solutions, including liquidity providers and a forced exit module, while outlining plans for future updates.

medium.com/@Fiamma.io
🔗 BBBB Blog 003: Fungible Bridge
This article primarily addresses the issue of fungibility within the Bridge, building on our previous analyses. Users encounter several challenges during the PEG-OUT process:
Amount Inflexibility Issue: When the amount users wish to PEG-OUT is not in the Operator-maintained PEG-IN amount list, they cannot directly proceed with the exit.
Asset Locking Issue: If some operators go offline, leading to some assets not being able to be withdrawn without permission, two methods can be utilized:

This content belongs to Newsletters » Weekly #20