maybe I'm wrong, but until there's more activity, won't you be relying on time and coincidence of amounts? personally I don't trust sidechains enough to use it for any period of time. also, isn't it true that switching from Bitcoin to Liquid is a taxable event? and then again for swapping back (unless your plan works)?
Discussion
fair points. I'm looking at what the possible pitfalls are and getting other opinions from community. im not that technical on understanding the level of privacy gained between trxn on the liquid apart from inability to see amounts and asset types in the transactions. advantages to on-chain coinjoins are security and you know the precise level of obfuscation. disadvantages to on-chain coinjoins can be fees and easy to identify a utxo has been a part of a coinjoin.
personally i use joinmarket + jam
you can provide your coins for mixing and takers pay your fees for mixing. you can even earn a small amount if desired.
also allows for a neat withdraw method where you enter 3 addresses and it'll empty your jam balance spread out over time with random amounts while also mixing on the way out.
available on umbrel and start9 i'm pretty sure
if you're a tinkerer, guides are on raspibolt.org