SideSwap Restores 1:1 Peg for L-BTC Token on Liquid Network
Exchange provider confirms full Bitcoin backing, though withdrawals still rely on manual wallet top-ups
The Liquid network has restored the one-to-one peg between the L-BTC token and Bitcoin. Exchange provider SideSwap confirmed that total reserves reached 4,270.54 Bitcoin to cover the equivalent circulating supply of the asset.
The balance was achieved following deposits of 300 and 250 Bitcoin made in early November. This measure corrects the deviation caused by an Elements software glitch in September that allowed for the creation of 4,000 unbacked tokens.
Despite the restored parity, direct withdrawals via the Liquid Federation remain suspended. Users currently depend on SideSwap's own wallet to process Bitcoin withdrawals.
The company converts L-BTC to Bitcoin at a 0.1% fee. When the provider's wallet inventory runs low, payment orders enter a waiting queue until a new manual top-up occurs.
There is no set deadline for the resumption of direct network withdrawals or for the automation of payments. SideSwap processes pending requests based on the availability of funds in its own stock.
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