WHAT ABOUT LIGHTNING OR LIQUID THOUGH
Fungibility in Bitcoin & Monero
Dr. Daniel Kim
https://video.nostr.build/38093d0dca2980553a729e7b3e821c7f960e4dea71721a5a183d4b4d23e445f2.mp4
Discussion
Liquid only hides amounts. It doesn't hide addresses or obfuscate senders like Monero. No default network level protection either.
Any custodial lightning wallets, or non custodial wallets that depend on LSPs, give you no privacy or reduced privacy since they are routing for you.
In order to have some privacy on Lightning you have to use your own lightning node:
1. open channels with coins you mixed beforehand
2. don't announce channels
3. open channels directly with only people you trust
4. use Tor
...and after all that your receiver privacy will still be bad.
So, I recommend just skipping the headache and using tool specifically designed around privacy from the ground up like Monero