L-BTC resumes trading with reserves covering just 85% of supply

SideSwap reopened its markets on Liquid while the network’s route back to Bitcoin remained closed. The split gives Liquid Bitcoin a market price before holders regain the process that converts L-BTC into BTC.

At 22:55 UTC on Sept. 10, a Blockstream explorer endpoint showed 4,229 L-BTC outstanding. A simultaneous Bitcoin address reading for the cited federation reserve showed 3,601 BTC. Those two readings imply reserve coverage of about 85.15% and a gap of roughly 627 BTC at that moment.

SideSwap’s Sept. 10 statement said Liquid was producing blocks and all SideSwap markets were open. New peg-ins and peg-outs through SideSwap remained closed while the Liquid Federation continued its security review.

SideSwap runs the trading venue and wallet. The Liquid Federation controls the Bitcoin reserve and authorized peg-out process, while Blockstream provides core technology and publishes network status. Their separate roles explain how venue trading can resume ahead of federation redemption.

Trading gives L-BTC a price, not an exit

Trading and redemption answer different questions. An order book records the price counterparties accept. A peg-out burns L-BTC on Liquid and directs the federation to release BTC on the Bitcoin network.

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