Peg-outs (transferring back on to the Bitcoin chain) require you to go through a Federation member exchange.
I'm curious to see how this plays out. Basically, you can opt-in without KYC, but when you want to opt back out, you'll have to spread your cheeks wide open and cough (which weakens the point of Confidential Transactions to some degree). Maybe decentralized atomic swap markets will resolve this, but until then I think the friction could be considerable.
Other than that, it sounds kinda awesome. I'm imagining a video game where in-game assets are represented by Liquid Bitcoin tokens which are tradeable in open markets.
$ liquid-cli 1000 1 true
This creates an asset with 1000 units and 1 reissuance token.
> representing anything.
Huh? It seems to me that it is not possible to issue an asset representing a dollar, a gold bar, a cup of coffee, or anything else that has a value not denominated in BTC.
There is a 1:1 peg between the value of BTC and L-BTC, so not sure what the point of assets is, but perhaps I am missing something.
What can probably be done is issue tokens with combined tokens such as a L-BTCLTC, by doing an atomic, concerted peg-in and peg-out of BTC and LTC on both blockchains.
Liquid is great, but assets I don’t get.
/u/adam3us please help me out here haha
in liquid there are both peg assets (liquid bitcoin L-BTC) and liquid issued assets. issued assets are not peg related, and there you rely on the issuers claims - eg if it were a fiat coin, do they have the fiat in their bank account (think like tether, gemini, paxos fiat coins on liquid). or representing other kinds of ownership of stock, bonds, digital collectibles etc. so /u/chiefy81 is correct.
Much appreciate your reply Adam, thank you.
That means liquid assets are IOUs but so is virtually everything in finance. I am trying to think this through a bit more. It seems to me that if banks and issuers cooperate and exchange assets on liquid, then this can be a disruptive change obsoleting quite a bit of SWIFT messaging and simplifying reconciliation. Probably can reduce the need of clearers as well.
Very exciting, all the best Adam!