pull down to refresh
Not easily. This is how a swap LBTC-LUSDT might look.
It could also look like this.
Tether should know how many USDT are circulating on Liquid. And they're also affiliated with Bitfinex who are a Liquid federated member.
Maybe like you said it's not as easy as TRON or ETH but I wouldn't count on tether being uncensored on Liquid. The risk is still there.
This is a simple LBTC transfer with change, not a USDT one and definitely not a swap.
Federation members cannot unblind other people's transactions.
No. If you send a token you must also spend some LBTC output to pay the fee. So you have a minimum of two inputs and usually three outputs (one forward and two changes). All of them are blinded and look similar for an outside observer, no way to tell what actually happened. Could be just LBTC funds sent to three parties from two UTXOs.
A swap between LBTC and USDT might look like I show above (as broadcasted by sideswap.io).
I wonder how Tether will handle tokens if they aren't confident in their ability to track the tokens.
We can already send USDT confidentially on Liquid, and even do atomic swaps vs Liquid BTC on SideSwap.io. This gives huge advantage over Tron, Eth, Solana etc. because Tether cannot trace and freeze coins on Liquid Network.