Liquid Network has taken its next step toward recovery by restoring semi-automated swaps between Bitcoin and L-BTC through supported providers, giving users a way to trade between assets without protocol-level volume caps. Direct redemptions through the federation, known as peg-outs, remain strictly frozen because on-chain reserves currently cover about 85.8% of outstanding L-BTC—leaving an unresolved deficit of roughly 603 BTC following the September exploit where 4,000 BTC was drained and 3,400 BTC subsequently returned. Federation operators have deployed patched reserve-management software, but the federation made it clear that full one-for-one collateralization and rigorous security sign-offs are required before direct redemptions can resume. Providing secondary swap liquidity helps relieve immediate pressure on holders, yet the real test for community confidence remains whether Blockstream and federation members can clearly explain how that remaining 600 BTC gap will be filled.