Not on-chain they don't, you don't seem to understand the difference between internal accounting and actual Bitcoin, maybe why you think a shitcoin like Liquid is Bitcoin...
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What about Rootstock/BitVM or whatever? They already have trustless BTC->rBTC and are working to also make rBTC->BTC possible without federations. It’s also older than Liquid if I’m not mistaken.
What about activating more op codes on L1?