Utxo.fun allows you to launch and negotiate tokens in bitcoin using second -layer networks.
Flashnet, the underlying Dex, did not tolerate the initial volume, which paused operations.
The utxo.fun platform, designed as a clone of the exchange of pump.fun of solana but adapted to the Bitcoin ecosystem, It was inoperative just 30 minutes After its launch in Beta version, on August 10.
In Utxo. Users can buy, sell or launch tokens in Bitcoin. This application is specifically integrated with SPARK, a second layer 2 (L2) network that allows faster and more economic transactions compared to the main layer.
At the time of this article, the Utxo website. Fun still does not work. From there they warn that «trade is temporarily disabled while we are looking for a solution. BTC refunds are currently being processed »:
An hour after launch, and after a warning Previous, the Utxo.fun team He issued An advertisement in X explaining the situation:
“The funds are safe! If you bought any token and did not appear in your portfolio, do not worry, we are working on a solution and this will be resolved as soon as possible. We saw an overwhelming amount of purchases and things broke. We have also temporarily deactivated the operations on the site until the correction is implemented. Refunds have been initiated for all transactions that did not complete. stay attentive! ”
Utxo.fun in X.
Given the scalability and processing speed limitations, the question arises if these types of solutions are compatible with bitcoin.
Bitcoin’s infrastructure could not adapt to the intensive operation required by decentralized exchanges (DEX), frequently used in other networks, such as Ethereum or Solana.
Why did Utxo stop working?
The interruption in Utxo.fun attributed Directly to flashnet failures, the technical infrastructure that supports its operations. The problem arose because the high volume of users during the launch of Utxo.fun overloaded flashnet serversgenerating failures in transactions.
As a consequence, Utxo. Trading temporarily paused and initiated reimbursements to affected people, reiterating that the funds remained “safe”.
Flashnet is a DEX designed to facilitate trading in the Bitcoin network. Use the L2 Lightning Network (LN) and the UTXO model (transaction outputs unbound) to process operations without requiring central custodians.
Integrated with Spark, Flashnet enables Bitcoin’s native assets, promising to expand the abilities of decentralized finance (defi) in this ecosystem.
In the context of Utxo.fun, Flashnet acts as the underlying engine that manages operations. Without this protocol, Utxo.Fun could not process transactions efficiently, since It depends on its services to maintain integrity and speed required in a high volume environment.
From Flashnet, they confirmed the incident in a first advertisement In X:
“You broke Flashnet. We are working to put things in motion again! The funds are sure.” Minutes later, They added: «Corrections are landing while we talk. Again, this is a beta, please bring it as such. All funds are safe and reimbursements are being processed!
This episode illustrates the inherent challenges in defi platform releases in Bitcoin, where scalability remains a risk, but they also seem to move away from the use of which the network created by Satoshi Nakamoto was conceived.
