A trustless exchange between Bitcoin mainnet and the Liquid Network that settles directly on the base layer, enabling users to move between on-chain BTC and Liquid Bitcoin (LBTC) without custodial intermediaries.

On-chain swaps typically use atomic swap constructions, where Hash Time-Locked Contracts (HTLCs) ensure that both legs of the swap either complete together or fail together. Users maintain control of their keys throughout the entire process. No funds are held by a third party at any point.

On-chain swaps are distinct from Liquid's native peg-in/peg-out mechanism. Peg-ins and peg-outs move BTC through the Liquid Federation's multisig, while on-chain swaps match a BTC holder directly with an LBTC holder, bypassing the Federation entirely. This can offer faster settlement and different trust assumptions.