Liquid is federated with unknown group of federation members who can steal you bitcoin at anytime if they wish to collude.

Liquid doesnt offer much, 1 minute for transactions to execute which is very slow despite being 9 minute improvement on mainchain.

Liquid has confidential transactions which can still be traced so the privacy of Liquid is nonexistent.

The apps on Liquid are limited. The only app I see being cool is the LBTC and USDT AMM pool. Could be used to hedge your bets to convert USDT to Bitcoin without using exchange. Since the network effect is low, liquidity is low making slippage a problem when using these AMM pools.

Liquid lacks a network effect due to being a permissioned network, slow transactions speeds, lacks privacy and lack of applications.

There is no guarantee DC will succeed.But there is equally no guarantee any L2 succeed. But I am of the view its better to “try and fail” than “fail and never try”.