Liquid Bitcoin (L-BTC) is a special type of asset on the Liquid sidechain. Its supply is verifiably backed 1-to-1 with bitcoin (BTC) held on the Bitcoin mainchain.

L-BTC is created when BTC is moved to the Liquid Network and destroyed when BTC is moved out of the network. The process of moving BTC to Liquid is known as a peg-in, and moving BTC out of Liquid is known as a peg-out. 

Aside from its uses in trading, L-BTC is also needed to pay for transaction fees when transacting any type of asset on Liquid.

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