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SideSwap reopens Bitcoin swaps while Liquid reserves stay locked

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SideSwap reopens Bitcoin swaps while Liquid reserves stay locked

SideSwap’s wallet funds the reopened swaps while partly manual refills can delay payments and direct Federation withdrawals remain restricted.

SideSwap, a swap provider on the Liquid Network, has reopened conversions from the synthetic Bitcoin token L-BTC into Bitcoin.

Direct withdrawals from the Liquid Federation, which manages the network’s Bitcoin reserves, remain restricted. SideSwap’s payouts can still queue during refills of its own Bitcoin wallet.

In its Oct. 21 update, SideSwap said users had made about 600 peg-outs, and it had paid more than 60 BTC since reopening on Oct. 20.

In Liquid's Sept. 23 assessment, Blockstream said an Elements verification-cache flaw created approximately 4,000 unbacked L-BTC and led to Bitcoin leaving Liquid’s reserve through SideSwap.

Under SideSwap’s reopening terms, holders send L-BTC and receive Bitcoin at a quoted 1:1 conversion rate less the provider’s standard 0.1% fee. The service is available through its app or website, and a wallet using SideSwap’s service may add its own fee.

For now, SideSwap says it pays users from its own Bitcoin wallet and swaps the L-BTC it receives for Bitcoin in bulk.

That separates the customer’s conversion from replenishment of the provider’s inventory. The customer supplies L-BTC, but the Bitcoin for payment must be available in SideSwap’s wallet while the Federation’s own withdrawal route remains restricted.

Those bulk refills are still partly manual. If a refill is pending, peg-outs wait and are paid in arrival order once the Bitcoin reaches the wallet.

SideSwap says a waiting peg-out is not lost and requires no action from the user.


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