L-BTC can be exchanged for BTC again, but direct withdrawals from the Liquid Federation remain closed. SideSwap says it advances funds from its own Bitcoin wallet, then replenishes its inventory in batches after receiving L-BTC. Some replenishment is handled manually. If the funds haven’t arrived in its inventory, payouts are queued in order of arrival; they won’t be lost, but no maximum wait time has been given.
The coins come from SideSwap’s inventory, which doesn’t mean the Federation’s reserves have been unfrozen. Direct redemption will still have to wait until full 1:1 backing is in place and safety and operational recovery conditions have been met.
The coins come from SideSwap’s inventory, which doesn’t mean the Federation’s reserves have been unfrozen. Direct redemption will still have to wait until full 1:1 backing is in place and safety and operational recovery conditions have been met.