Liquid restores 1:1 Bitcoin backing, but wallet refills remain manual

The Liquid Network's Bitcoin reserve again fully backs L-BTC, its Bitcoin-linked token, swap provider SideSwap said Nov. 3.Direct withdrawals from the Liquid Federation remain restricted, leaving SideSwap's customers dependent on the provider's own Bitcoin wallet for payouts.In its Nov. 3 update, the swap provider cited 4,270.54 L-BTC in circulation against 4,270.54 BTC in the reserve managed by the Liquid Federation that morning. Those equal balances restore one Bitcoin of reserve backing for each L-BTC, according to SideSwap.The company identified deposits of 300 BTC and 250 BTC on Nov. 2 among the transfers that brought the reserve level with circulation.The restoration follows the Sept. 6 incident in which an Elements software flaw allowed about 4,000 unbacked L-BTC to be created and converted into Bitcoin through SideSwap's service, according to the provider.Why holders can still wait for BitcoinSideSwap says its L-BTC-to-BTC service has been open since Oct. 20, and holders can send L-BTC and receive Bitcoin at a one-to-one rate, minus the provider's standard 0.1% fee. That customer conversion route remains separate from direct Federation peg-outs, the mechanism for releasing ...