SideSwap Reports About 600 Redemptions After Reopening L-BTC Swaps

SideSwap reopens L-BTC swaps and reports about 600 redemptions

SideSwap says it has processed about 600 redemptions after reopening swaps for L-BTC, a bitcoin-based token used on the Liquid network. The provider says it is paying users from its own bitcoin wallet.

According to the report, reserves held by the Liquid federation still cover about 85.8% of outstanding L-BTC. That means the reserves are reported to be smaller than the total amount of L-BTC in circulation.

What the report says about redemptions and reserves

• SideSwap reports roughly 600 redemptions since swaps for L-BTC were reopened.


• SideSwap says it is paying users from its own bitcoin wallet rather than from the Liquid federation reserves.


• The Liquid federation's reserves are reported to cover about 85.8% of outstanding L-BTC, leaving a shortfall.

What is confirmed

The available material confirms that SideSwap publicly reported the reopening of L-BTC swaps, the figure of about 600 redemptions, and that it is using its own bitcoin wallet to pay users. It also confirms the reported figure that Liquid federation reserves cover about 85.8% of outstanding L-BTC.

What is still unclear

The source material does not explain why swaps were closed before reopening, what caused the gap between reserves and outstanding L-BTC, or when the remaining shortfall will be resolved. It also does not state how long redemptions will continue or whether the figures will be updated.

Why it matters for L-BTC holders

The reported reserve gap is important because L-BTC is meant to be backed by bitcoin. If reserves cover less than all outstanding L-BTC, users who want to redeem their tokens may depend on other sources of bitcoin, such as SideSwap's own wallet, as described in the report.

Sources

• The Defiant