SideSwap today announced the launch of its new peg-in engine, a complete rebuild of how Bitcoin moves onto the Liquid Network, designed around upcoming changes to the economics of the Liquid peg.
Every peg-in creates UTXOs that the Liquid federation must later spend and consolidate, and the cost of managing this UTXO pool has to date been carried by the federation as a subsidy to users. ELIP 202, the user-pays peg-in proposal now merged into Elements, changes this by shifting the cost onto peg-in transactions themselves, with small peg-ins expected to carry a fee proportional to the federation's cost of managing the deposit once the policy activates on Liquid.
SideSwap has restructured its peg-in service to facilitate this change while keeping peg-ins fast and affordable for users. Under the new engine, users send BTC to a SideSwap taproot address and receive L-BTC directly from SideSwap's hot wallet, in the normal case after just 2 Bitcoin confirmations. SideSwap then batches deposits into fewer, larger federation peg-ins and absorbs the 102-block claim window itself. The result is a lighter footprint on the federation's UTXO pool, exactly what ELIP 202 is designed to incentivise, and a faster, simpler experience for users, who are insulated from the per-transaction costs the policy introduces.
The upgrade also simplifies fees and addresses. Every peg-in now carries a fixed network fee of 300 sats regardless of size, alongside the standard 0.1% service fee, and peg-in addresses no longer expire. Instant credit capacity is presented as a live status in the app, and hot wallet liquidity remains publicly visible in the app, via the API and on the website.
The new peg-in engine is live now in the latest release of the SideSwap app.
About SideSwap
SideSwap is a non custodial exchange and wallet built on the Liquid Network, focused on atomic swaps, tokenized assets, and Bitcoin native capital markets infrastructure.
With the launch of Swaption.io, SideSwap continues its mission to expand the capabilities of Bitcoin and Liquid through open, interoperable, and self sovereign financial tools.
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