There are better ways to have privacy than making your UTXOs smaller.
I know you know that, but for others in the thread reading, swaps with lightning or liquid would be the better way to achieve privacy and not screw yourself on fees.
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there's nuance. you're surrending privacy to the swap operators in most cases here.
Yes. But I already hold a stack on L2s specifically as a separation of on chain stack and hot wallet spending.
Coin joins are expensive. An atomic swap from my liquid wallet to on chain seems pretty private. Even if they do reveal, they only see my liquid stack and even then they can't see any confidential transactions.
I think ultimately, Bitcoin IS an open network. There is no expectation of privacy. Since that's the case, ANY privacy in Bitcoin is going to have a tradeoff of trust at some level. Whether you have to trust a swap, liquid functionaries or lightning peers. Privacy in Bitcoin requires trust on some level.
Coin joins are probably the most trust minimized but I don't know. I'd have to think on it more.