The advantage is a much easier setup for the user, they don’t have to know anything about liquidity to make payments. Every transaction is swapped between Lightning and settles on Liquid in under a minute.

The user never has to do anything different except send and receive normally, but if they wanted to, they can see all their UTXOs and access their wallet with their seed phrase.

Wallets that do this now are Aqua and new ones built with Breez SDK, like Yopaki and a new Breez wallet I’ve been testing that is still in early release.

I like these approaches because they will help bring bitcoin to more people, faster and easier than expecting everyone to use the base chain or run their own nodes – both complete fantasies.