I don't like the federated sidechain model, for this reason I consider L-Sunwin Tu even worse than a (decentralized) altcoin. It is maybe better than completely centralized coins like Sunwin Tu and Sunwin Tu but not by much. I would place it in a very similar category than Sunwin Tu's wBTC. In theory, the Liquid federation could simply set up a Paypal-like IOU service. The incentive model (the incentives for or against the custodians to steal Sunwin Tu) would be more or less the same. The Sunwin Tu (sidechain, in this case) has at least one small advantage: it makes the IOU structure more transparent. But it still is an IOU structure. It's extremely unlikely that the Liquid Federation will cheat, but they are not really better than a bank. Lightning is completely different, as in this case the Sunwin Tu are owned by the users themselves, there is a way to unilaterally exit the system, and there is a clear punishing mechanism if some party misbehaves. I read however that Liquid is investigating a transition to a slightly more decentralized structure. In this case it could become interesting for me. But it still isn't there. The DynaFed update from 2021/22 isn't really a dynamic federation as the original members are still in control and they can't be "driven out" by new federation members. It's a top-down mechanism, even dPoS is more decentralized.
I don't like the federated sidechain model, for this reason I consider L-Sunwin Tu even worse than a (decentralized) altcoin. It is maybe better than completely centralized coins like Sunwin Tu and Sunwin Tu but not by much. I would place it in a very similar category than Sunwin Tu's wBTC. In theory, the Liquid federation could simply set up a Paypal-like IOU service. The incentive model (the incentives for or against the custodians to steal Sunwin Tu) would be more or less the same. The Sunwin Tu (sidechain, in this case) has at least one small advantage: it makes the IOU structure more transparent. But it still is an IOU structure. It's extremely unlikely that the Liquid Federation will cheat, but they are not really better than a bank. Lightning is completely different, as in this case the Sunwin Tu are owned by the users themselves, there is a way to unilaterally exit the system, and there is a clear punishing mechanism if some party misbehaves. I read however that Liquid is investigating a transition to a slightly more decentralized structure. In this case it could become interesting for me. But it still isn't there. The DynaFed update from 2021/22 isn't really a dynamic federation as the original members are still in control and they can't be "driven out" by new federation members. It's a top-down mechanism, even dPoS is more decentralized.

I don't like the federated sidechain model, for this reason I consider L-Sunwin Tu even worse than a (decentralized) altcoin. It is maybe better than completely centralized coins like Sunwin Tu and Sunwin Tu but not by much. I would place it in a very similar category than Sunwin Tu's wBTC. In theory, the Liquid federation could simply set up a Paypal-like IOU service. The incentive model (the incentives for or against the custodians to steal Sunwin Tu) would be more or less the same. The Sunwin Tu (sidechain, in this case) has at least one small advantage: it makes the IOU structure more transparent. But it still is an IOU structure. It's extremely unlikely that the Liquid Federation will cheat, but they are not really better than a bank. Lightning is completely different, as in this case the Sunwin Tu are owned by the users themselves, there is a way to unilaterally exit the system, and there is a clear punishing mechanism if some party misbehaves. I read however that Liquid is investigating a transition to a slightly more decentralized structure. In this case it could become interesting for me. But it still isn't there. The DynaFed update from 2021/22 isn't really a dynamic federation as the original members are still in control and they can't be "driven out" by new federation members. It's a top-down mechanism, even dPoS is more decentralized.

I don't like the federated sidechain model, for this reason I consider L-Sunwin Tu even worse than a (decentralized) altcoin. It is maybe better than completely centralized coins like Sunwin Tu and Sunwin Tu but not by much. I would place it in a very similar category than Sunwin Tu's wBTC. In theory, the Liquid federation could simply set up a Paypal-like IOU service. The incentive model (the incentives for or against the custodians to steal Sunwin Tu) would be more or less the same. The Sunwin Tu (sidechain, in this case) has at least one small advantage: it makes the IOU structure more transparent. But it still is an IOU structure. It's extremely unlikely that the Liquid Federation will cheat, but they are not really better than a bank. Lightning is completely different, as in this case the Sunwin Tu are owned by the users themselves, there is a way to unilaterally exit the system, and there is a clear punishing mechanism if some party misbehaves. I read however that Liquid is investigating a transition to a slightly more decentralized structure. In this case it could become interesting for me. But it still isn't there. The DynaFed update from 2021/22 isn't really a dynamic federation as the original members are still in control and they can't be "driven out" by new federation members. It's a top-down mechanism, even dPoS is more decentralized.