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There's no reason to do that, Liquid's Confidental Transactions only hides amounts, not the transaction graph. Coinjoin hides both, and isn't custodial like Liquid.

Yeah I swapped my wasabi use to doing peg in and peg out on SideSwap to break the KYC exchange link. I was told this was a decent way to improve privacy because the UTXO history goes into a black box when you peg into liquid and when you peg out it’s hard to trace that history back to an exchange

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I was told the same thing. Lightning and Liquid is not enough?

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Liquid is custodial but it's a federation not one entity

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20 sats \ 0 replies \ @justin_shocknet 26 Jul -100 sats

There's no such thing as a federation, that's a marketing stunt. Still one API surface point of failure, and even if there are N keys there's no way to prove how they are actually distributed.