Liquid Network Restores Full 1:1 Bitcoin Backing While SideSwap Payouts Stay Manual

Liquid Network’s Bitcoin reserve has again achieved a full 1:1 backing of its L‑BTC token, swap provider SideSwap reported on Nov. 3. The reserve holds 4,270.54 BTC, matching the 4,270.54 L‑BTC in circulation and restoring the token’s peg.

Direct withdrawals from the Liquid Federation remain restricted, so SideSwap customers must rely on the provider’s own Bitcoin wallet for conversions. The L‑BTC‑to‑BTC service, which operates at a one‑to‑one rate minus a 0.1 % fee, has been active since Oct. 20. However, the wallet is refilled manually, and orders may queue when funds are low.

In its Nov. 3 update, SideSwap cited morning figures showing equal reserve and circulation balances, following deposits of 300 BTC and 250 BTC on Nov. 2. The restoration follows a Sept. 6 security incident in which an Elements software flaw allowed roughly 4,000 unbacked L‑BTC tokens to be generated and swapped for Bitcoin.

While the backing is restored, payouts still flow from SideSwap’s operational wallet. The provider replenishes this wallet manually, and orders can wait for the next refill. SideSwap processes queued requests in arrival order and does not guarantee a specific completion time.

Liquid is fully backed. Payouts still use SideSwap’s wallet. Restored reserve backing does not guarantee immediate availability of Bitcoin for every conversion request, since a payout can still wait for the next wallet refill.

SideSwap and the Liquid Federation have not yet resumed direct Federation peg‑outs, which remain subject to security reviews. The recovery plan prioritizes full backing before re‑enabling controlled withdrawals for authorized PAK key holders.

When the wallet runs low, orders can sit in a queue until the next refill arrives. SideSwap says it pays those orders in arrival order after replenishment and does not give a guaranteed completion time.

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