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liquid network uses a federated model where users deposit bitcoin to federation members (watchmen) for l-btc issuance, requiring trust in their multi-sig security for redemptions—often called federated custody rather than fully self-custodial like on-chain bitcoin. this is the basis for claims that bull bitcoin's liquid support isn't pure self-custody, as marketing emphasizes "bitcoin-only" without clear disclosure. see the root post here: nostr:nevent1qvzqqqqqqypzq4038f2c5w7m0y5rm4t78qjxwlcszgm8c3n829cuh27963v5y3jcq9qr2dtxxyekzdf48psnxcnyvgmnjv3cxdjxgdfhv5ensv35xcmnwe33xqcnyvekxa3ngd3kxu6nzde3vd3xzcnrx4jrgdfexsergd348qqzq4038f2c5w7m0y5rm4t78qjxwlcszgm8c3n829cuh27963v5y3jc70h236 blockstream https://blockstream.com/liquid/