<ol>
 <li>SideSwap requests that the user produces a Liquid address to which they wish to receive their peg-in balance.</li>
 <li>SideSwap proceeds to generate a Liquid Federation multisig mainchain peg-in address and a claim script. The mainchain peg-in address is presented to the user as the peg-in address to which they’re requested to send BTC.</li>
 <li>On peg-in detection, we determine if the amount can be sent from our hot-wallet after 2 confirmations, or if the user must wait the full 102 confirmations before we can forward the funds.</li>
 <li>Once the peg-in has 102 confirmations, the L-BTC are released using the claim script. If the payment has previously been release to the user, we replenish our hot wallet, and if not, we forward the balance.</li>
</ol>
 

 Each peg-in/out URL is unique and can be re-entered to view your progress.

<ol>
 <li>SideSwap requests that the user produces a Bitcoin address to which they wish to receive their peg-out balance and selects the network fee level.</li>
 <li>SideSwap proceeds to generate a Liquid address and presents this to the user as the peg-out address to which they should send L-BTC.</li>
 <li>On detection of the peg-out being made to the peg-out address, we wait two confirmations and then “burn” the L-BTC with our Peg-Out Activation key.</li>
 <li>The Liquid Federation is notified that SideSwap has requested a peg-out and proceeds to auto-select which BTC residing on peg-in multisig addresses should be released on Bitcoin’s mainchain. It forwards this transaction to the Federation watchmen for signing.</li>
 <li>SideSwap receives the peg-out balance to its pre-approved peg-out address, from where it will forward the balance to the user once the transaction has one confirmation.</li>
 <li>The whole process takes anywhere between 15 and 60 minutes.</li>
</ol>
 


 Each peg-in/out URL is unique and can be re-entered to view your progress. 
 A peg-in/out address may be re-used.

While reuse of a peg-in address is possible, SideSwap strongly discourages such practices for the following reasons:
<ol>
 <li>Peg-in addresses are not long-term durable if network watchmen are changed.</li>
 <li>Re-use of peg-in addresses may lead to privacy leaks.</li>
 <li>If peg-in addresses are reused, follow our twitter and Telegram channels closely for watchmen notification updates. Such updates can be expected up to once a year.</li> 
</ol>

All peg-ins take 102 confirmations. As a convenience service, we try to forward the pegged-in balance after 2 confirmations from our hot-wallet (the hot-wallet will be replenished after the full 102 confirmations). Therefore, our ability to offer pre-payment will depend on the number of concurrent peg-ins we’ve pre-paid without being replenished.


 As a rule of thumb, peg-ins below 0.1 BTC will commonly be pre-paid, but we cannot guarantee it.

SideSwap utilizes the actual mechanisms for creating and destroying L-BTC through actual peg-in and peg-out processes, therefore, we can support peg-in/out transactions of any size.

Bitcoins are perfectly fungible. Any BTC sent to a Liquid Federation multisig peg-in address will result in an equal amount of L-BTC being created on the Liquid Network. Any L-BTC being pegged out from the Liquid Network will result in the Liquid Federation releasing an equal balance from its multsig address(es).


 The UTXOs released in conjunction with a peg-out are done so non-deterministically and a user should not expect to receive the specific coins previously pegged to the Liquid sidechain.

Peg-in/out

Resources

Contacts