Update from the Liquid Federation:

The Liquid Federation is pleased to announce that the network’s bitcoin reserves have been fully restored, reestablishing 1:1 BTC backing for all LBTC.

This follows the restoration of BTC<>LBTC swaps several weeks ago, which have since allowed users to move between Bitcoin and Liquid at a 1:1 rate through participating swap providers. Together, these milestones represent significant progress in the Federation’s recovery efforts and reaffirm its commitment to the long-term security, stability and resilience of the Liquid Network.

As always, the network’s bitcoin reserves are independently verifiable. Users operating their own Liquid nodes can directly verify the Federation’s Proof of Reserves, while reserve balances and network activity can be monitored through the public dashboard at http://liquid.network.

We extend our sincere appreciation to the Bitcoin community, Liquid users, and ecosystem partners for their patience, understanding, and continued engagement throughout the recovery process. Your support and involvement has been instrumental as we worked to restore the network’s reserves and strengthen its underlying infrastructure.

Strengthening the Liquid Network for the Future

Looking ahead, the Federation is advancing several important initiatives designed to strengthen the network’s long-term security, governance, and operational resilience.

These efforts include modernizing the governance structure, introducing clearer responsibilities and oversight, and implementing additional technical and operational safeguards to further protect the network and its participants.

More details on these initiatives and the Federation’s next steps will be shared in the coming weeks.

Restoring full bitcoin backing marks an important milestone, but our work continues. The Federation remains committed to building on the progress of recent years, advancing Liquid’s development, and strengthening the network’s resilience and accessibility for all participants.

Update from the Federation:

BTC<>LBTC swaps were re-enabled last week as part of Liquid’s staged recovery. Users can once again swap between BTC on Bitcoin and LBTC on Liquid at 1:1 through participating providers, including Aqua, @BULL BITCOIN and SideSwap. These providers collectively accounted for 99% of peg-out volume prior to the incident.

Normal Federation peg-out operations remain subject to enhanced operational controls while security hardening continues and the independent security audit nears completion.

The community can track progress toward restoring full 1:1 BTC backing for LBTC through Liquid’s auditable Proof of Reserves at liquid.network.

Liquid Network Restoration Update

With key technical milestones completed and network operations stable, user swap functionality is now restored with semi-automated swaps for Federation members. Normal peg and balance validation will be reinstated soon.

The Liquid Network’s members appreciate the broader Bitcoin community’s support and advocacy as we work to not only provide the restoration, but also harden the network’s security structure.

https://blog.liquid.net/liquid-network-staged-recovery-update/

Most DeFi runs on chains where a bug can drain everything.

What if Bitcoin smart contracts could prove high assurance before deployment?

Simplicity is building toward this with options contracts where outcomes are provable, no 3rd parties needed.

Built different.


Join Simplicity Office Hours this Tuesday to see what building on Simplicity looks like.

@Blockstream Rust/SimplicityHL Engineer Kyrylo Riabov will be demonstrating an early Simplicity DEX through on-chain options contracts on Liquid.

January 28, 8am PST.

https://docs.simplicity-lang.org/office-hours/

The functionality of virtually every existing opcode proposal, every DeFi primitive in use today, and much of what exists in traditional financial markets can theoretically be built and audited in Simplicity.

Start building the future of finance today.

https://simplicity-lang.org