“Pegs are back both ways,” SideSwap wrote in its Oct. 21 post. Its detailed notice says users can convert between bitcoin and L-$BTC through its app or website, but may face delays: SideSwap refills its payout wallet through bulk swaps that remain partly manual. Requests wait in a queue and are paid in arrival order once a refill lands.
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Full Backing Before Federation Withdrawals
The provider-operated route is the first stage of Liquid’s recovery plan, which enables semi-automated swaps through participating providers without protocol-imposed volume limits. Direct federation peg-outs remain restricted.
Liquid is a Bitcoin sidechain designed to back L-$BTC one-for-one with bitcoin. The shortfall follows the Sept. 6 security incident: Blockstream’s assessment says an Elements software exploit created approximately 4,000 unbacked L-$BTC that was converted into bitcoin, and that 3,400 $BTC was returned on Sept. 7.
SideSwap said the roughly 600 $BTC funding gap will be filled once the security review and updates are complete. The federation’s plan calls for restoring full one-for-one backing before reactivating direct peg-outs for authorized Peg-out Authorization Key holders. It gives no firm date for that final stage.