How are Liquid and Lightning handled under the hood in AQUA? How are the funds held? Are they held in Liquid and then converted to Lightning at the last minute?
Can anybody answer this?
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It uses boltz to swap between liquid and lightning, instead of using native lightning.
https://boltz.exchange/
So, basically, the funds sit in Liquid until a Lightning payout is needed at which time an atomic swap is made correct?
Yes 👍
Thank you for clarifying. So the only custodial risk lies in Liquid