sideswap

After a test transfer was completed, the reserve gap of the Liquid Network has narrowed to about 600 BTC. Samson Mow, a member of the Liquid Federation, stated that the remaining funds are expected to be in place within the next few days, but the recovery plan still requires full reserve backing before direct redemptions can be restarted.Previously, the Liquid Network experienced a security incident where attackers exploited a rangeproof verification cache vulnerability in Elements to issue approximately 4,000 L-BTC without providing sufficient Bitcoin backing, and transferred out about 4,000 BTC through the redemption channel of Federation member SideSwap. After the incident, the attackers have returned 3,400 BTC, with approximately 602 BTC still being recovered.Blockstream suspended the Liquid bridge nodes after the incident and notified exchanges to pause L-BTC deposits and withdrawals, subsequently deploying an emergency patch and releasing Elements v23.3.4 to fix the related vulnerabilities. Currently, trading on the Liquid Network has resumed, but direct redemptions remain suspended, with a reserve coverage ratio of about 85.8%.

SideSwap issued a statement saying that at 14:05 UTC today, a customer sent 4000 L-BTC to its peg-out service. The service processed the order as usual, L-BTC was destroyed on Liquid with a valid peg-out authorization, and at 14:28 UTC, Liquid Federation paid 3996 BTC to the customer's Bitcoin address.Blockstream subsequently confirmed that the L-BTC was minted due to a vulnerability in the Elements software. SideSwap's peg-out authorization keys and systems were not compromised, and the service cannot distinguish these tokens from other L-BTC. SideSwap is a non-custodial service, and user wallets are unaffected, with assets controlled by the users' own keys.Liquid has been suspended by the Federation, and SideSwap's exchanges, peg-ins, and peg-outs will be paused until the network is restored. Peg-outs that have been completed on Bitcoin are unaffected. Unfinished peg-ins or peg-outs can send transaction IDs to hello@sideswap.io for separate processing. Please do not send new peg-in or peg-out deposits until the service is restored.

ChainCatcher news reports that, according to market data, the price of the ZKFair ecosystem's leading Dex Sideswap token SIDE has increased by 700% over the past week, currently quoted at $0.00184. In addition, Sideswap is about to launch perpetual contract features and will subsequently open up transaction fee sharing and other functions to reward loyal community users. For more details, please refer to the official Sideswap announcement.It is reported that SideSwap is a decentralized trading platform that uses Uniswap's open-source code, aiming to provide users with efficient on-chain liquidity. It launched a fair distribution event for 1 billion SLIDE tokens on December 27, 2023, on ZKFair, with a TVL exceeding $20 million at its peak.

ChainCatcher news, based on the Liquid atomic swap protocol Sideswap, stated on platform X that the number of bitcoins locked on the Bitcoin sidechain Liquid has reached a historic high of 3749.86 BTC, worth approximately 158 million USD.