Summary
Peg-in through SideSwap is open again from today. A peg-in works as it always has: the ratio is one to one, and for every 1 BTC you send, 1 L-BTC less our standard fee of 0.1 percent is credited to your Liquid wallet. Peg-out stays closed, on the network and at SideSwap, until the Liquid Federation has completed its security review.
Before you peg in, read the section below on what stands behind L-BTC today. The Federation's reserve is still below the amount of L-BTC in circulation, and L-BTC cannot yet be redeemed for bitcoin. For many users it may make sense to wait.
Why peg-in first, and what has changed
On 9 September we said we would not resume peg-in or peg-out until we and the Federation were confident the process was safe, and that we would say plainly what had changed before we did. This is that note for peg-in.
The 6 September incident was a peg-out: L-BTC created from nothing was burned, and bitcoin was released from the Federation. A peg-in runs the other way. Bitcoin is deposited with the Federation and L-BTC is issued against it. No bitcoin leaves the Federation, and the peg-out authorisation key that was at the centre of our two failures is not involved. The network has processed peg-ins since transactions resumed on 10 September. Blockstream's status update of that evening says peg-outs remain disabled as a precaution while the final stage of recovery continues, and that further information on their resumption will be shared once available.
Our peg-in service runs on the terms shown on the peg page. For amounts below the balance shown there, L-BTC is credited after 2 Bitcoin confirmations from our own inventory, provided the peg-in address is less than 7 days old. For larger amounts, and for any peg-in that is not confirmed within 6 hours, L-BTC is credited after 102 confirmations, when the Federation issues it.
What a peg-in gives you today
The peg ratio is one to one: the network issues 1 L-BTC for every 1 BTC deposited. That ratio has not changed, and our standard fee of 0.1 percent applies as before, so you are credited 1 L-BTC less 0.1 percent for every 1 BTC you send. What has changed, for now, is what stands behind L-BTC.
Per liquid.network on 11 September 2026, 4,229 L-BTC is in circulation against 3,627 BTC in the Federation's reserve, and peg-out is switched off, so L-BTC cannot currently be redeemed for bitcoin through the Federation. Blockstream's CEO Adam Back has said publicly that the peg will be covered one to one and that peg-out returns in a later step. How and when is for Blockstream and the Federation to announce. Until it is done, a peg-in exchanges bitcoin, which you can spend anywhere, for L-BTC that is backed below one to one today and not yet redeemable.
Our view, plainly. If you do not need L-BTC now, there is no advantage in pegging in before the peg is restored, and waiting costs you nothing: the peg-in will be there when peg-out is back. If you need L-BTC on Liquid now, to trade or to settle something on the network, peg-in works and you receive L-BTC one to one, less our 0.1 percent fee. The L-BTC you receive is the same asset that trades on our markets, at whatever price the market puts on it. Our markets are open and show that price against USDt; look at it before you decide.
Peg-out
Peg-out stays closed. The Federation's bridge nodes do not process peg-outs, and Blockstream has said that further information on their resumption will be shared once available. Our own peg-out service reopens after that, and we will say plainly what has changed in it before we do, as we committed on 9 September. That includes how our authorisation key is held and what limits and checks sit in front of any payout.
Practical points
Peg in from the SideSwap app or from sideswap.io/peg-in-out. Use a fresh peg-in address for each peg-in and send within 7 days; bitcoin sent to an older address may be temporarily or permanently unclaimable, as the peg page states.
Peg-ins and peg-outs that were in progress when the network paused on 6 September have been released. If yours has not completed, email [email protected] with the transaction id.
Nothing else is required of users. SideSwap is non custodial; wallets, keys and balances are unaffected, and swaps, markets, and DePix issuance and redemption continue as before.
What comes next
Blockstream and the Liquid Federation are leading the network-level work, including the security review and the return of peg-out. We will post updates on x.com/side_swap and t.me/SideSwap_io as things move, and we will publish what has changed in our peg-out service before we reopen it. We will not comment on the recovery efforts or on who was behind the incident.
About SideSwap
SideSwap is a non custodial exchange and wallet built on the Liquid Network, focused on atomic swaps, self custody, and open blockchain based capital markets rooted in Bitcoin.
Inquiries:
[email protected]