Liquid Network Puts Reserve Rebuild Ahead of Bitcoin Peg-Out Restart
Photo: TokenPost
Liquid Network is enabling Bitcoin (BTC) conversions through swap providers in stages after an exploit involving about 4,000 BTC, while direct withdrawals from network reserves remain restricted. Users can again exchange BTC and LBTC through participating swap providers. These swaps offer a way to convert LBTC to BTC while direct federation peg-outs, which release BTC from reserves, remain blocked. Liquid is a Bitcoin sidechain developed by Blockstream. Its LBTC token is designed to be backed 1:1 by BTC. An inflation bug allowed more than 4,000 unbacked LBTC to be created and exchanged for BTC.
Source: TokenPost
