SideSwap reopens Bitcoin swaps while Liquid reserves stay locked
SideSwap reopened L-BTC-to-Bitcoin conversions on Oct. 20 while direct withdrawals from the Liquid Federation remain restricted. By the next day, it reported about 600 peg-outs and more than 60 BTC paid. SideSwap pays users from its own Bitcoin wallet, then replenishes it by swapping received L-BTC in bulk; refills are partly manual, so payments may queue without a stated maximum wait. The service quotes a 1:1 rate minus a 0.1% fee, but this does not mean Liquid’s reserves are fully restored. A verification-cache flaw had created about 4,000 unbacked L-BTC and caused Bitcoin to leave the reserve through SideSwap. Federation withdrawals will resume only after full 1:1 backing and security and operational requirements are restored; no restart date has been given.
