As simple as that. ⚡️🌊🐬

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In light of the whole Samourai wallet coinjoin issue, when someone pegs-in and out of L-BTC, does it add any level of privacy for someone assuming they are using a new wallet to peg-out from that which was used to peg-in? I hope I worded this such that it makes sense. Let’s assume both were self-custody wallets through your own node.

If the amount is the same on both the in and out then it's probably fairly easy to track what happened for peg in and outs. If you were to swap into lightning after pegging into Liquid using Boltz then you'll have better privacy due the hops Lightning uses. Just remember in Liquid the addresses are known but the amounts and assests are confidential. An outsider can only determine that something went from address a to address b and the fees that were involved

Thanks for answering. So once the BTC goes into L-BTC that L-BTC will always be associated and traceable to the original BTC that it was created from? I like the idea of swapping it into lightning from liquid, and then into base layer BTC again. I am so curious if that is traceable!

Not necessarily. When you peg in it's obvious on chain due to the receivers address being a specific type of multsig. I think Sideswap might be able to swap instead of pegging in from on chain to Liquid if it's under a certain amount. If you swap into Liquid from Lightning using Boltz then someone watching on chain wouldn't know what took place, also Boltz can't tell where the Lightning payment came from. It really depends on what you want to do and trying to achieve. Using Liquid and on chain alone will probably be traceable since addresses are still known, but when you add lighting into the mix its much harder from an outsiders view what happened with those particular utxos