- A Liquid Network monitoring page briefly showed Liquid Bitcoin (LBTC) as undercollateralized due to missing address data.
- The display said about 82.4% backing, showing 3,463 BTC vs. 4,199 LBTC in circulation, on Monday.
- Blockstream attributed the error to Mempool.space not upgrading node software after a dynafed network update and counting old addresses.
- Mempool.space removed the data and showed an “Indexing in progress” status while reindexing to include the missing address.
- Blockstream’s own dashboard showed full backing of 4,199 BTC, and LBTC kept 1:1 parity with BTC during the incident.
A public monitoring page run by Mempool.space showed an incorrect collateral level for Liquid Bitcoin (LBTC) on Monday, displaying about 82.4% backing for a market capitalization of $350 million. The page reported roughly 3,463 bitcoin (BTC) backing liabilities of 4,199 LBTC in circulation before going mostly blank.
The site issued a status message, “Indexing in progress.” Blockstream, a founding member and one of 15 functionaries of the Liquid network, said the discrepancy stemmed from incomplete visibility into federated wallets.
Adam Back, CEO of Blockstream, said “Mempool.space the operators of liquid.network had not upgraded their node software following the most recent dynafed [Dynamic Federations] network upgrade. So they were looking at old addresses and not having visibility,” and added that operators were notified and “promptly fixed that problem,” noting the missing entry as this address.
Blockstream’s independent dashboard showed 100% backing with 4,199 BTC held in federated wallets. Market activity for LBTC did not show a loss of parity; LBTC held its 1:1 price relationship with BTC during the period.
Dynafed, short for Dynamic Federations, is a network upgrade that changes how federation members and addresses are announced to nodes; failing to run upgraded node software can leave a monitoring service unable to see new or moved funds. The operators began reindexing the affected data on the public page at liquid.network to restore full visibility.
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