Submarine swaps. I want to know what's happening under the hood of these. I hope it's just not custodial funds being pegged and traded.
Discussion
Interested in this as well.
Take a look at this high level explanation by #[8] https://thebitcoinmanual.com/articles/btc-submarine-swaps/
or this doc by LN labs: https://docs.lightning.engineering/the-lightning-network/multihop-payments/understanding-submarine-swaps