Summary
Peg-out through SideSwap opened again yesterday, 20 October. Since then our users have made about 600 peg-outs, and SideSwap has paid out more than 60 BTC, one to one less our standard fee of 0.1 percent.
Pegs are back
Peg-in and peg-out both work, from the SideSwap app and from sideswap.io/peg-in-out.
There may be delays for now. While the Federation's own peg-outs remain restricted, every payout comes from SideSwap's own Bitcoin wallet, and that wallet is refilled through bulk swaps that are still partly manual. When a refill is on its way, peg-outs wait in the queue and are paid in the order they arrived as soon as it lands. A peg-out that waits is not lost, and nothing is required of you.
Markets
Dealer spreads on SideSwap's markets are coming back as liquidity returns.
Exchanges
Some exchanges have closed L-BTC deposits and withdrawals, and they may keep them closed until full functionality on the Liquid Network is restored. That is their decision and their timetable. Until then SideSwap's peg-in and peg-out are a direct route between bitcoin and L-BTC.
Full peg-out functionality
Full peg-out functionality, meaning the Federation's own peg-outs, will take a bit more time. The Federation is implementing many new security features, and the Liquid Network has said that peg-outs return once the remaining security and operational requirements are met.
The L-BTC in circulation and the bitcoin in the Federation's reserve are both public on liquid.network. Today the reserve is about 600 BTC below circulation. That funding shortfall will be filled once the security review is done and everything is updated.
The exact details of the security changes that have come out of this work will be published once they are completed.
Longer term
The work being done on Liquid now, and the lessons learned since 6 September, will make the network a lot stronger over the long term.
What comes next
We have a lot of new products and features coming in the near term. We will announce them here and on x.com/side_swap and t.me/SideSwap_io as they ship.
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]
Earlier notes: peg-out is open again, 20 October, statement of 9 September