As an explanatory note of why the traceability with sideswap is broken (because some have asked) when performing peg-in and peg-out is because they use a temporary hot wallet, therefore when performing peg-in there is no link between your btc and the l-btc issued and the same happens when performing peg-out. If you exceed the amount of the temporary wallet you will know it because you will get 102 confirmations instead of 2 and in the same way when performing the peg-out the time will be longer than two confirmations, between 20 and 60 minutes. You will know all this before confirming the transaction and you can check it in the liquid mempool to make sure there is no linkage. View quoted note →