A lack of visibility and the counting of old addresses were to blame for a popular Liquid Network dashboard displaying just 82.4% assets backing the $350 million market capitalization of Liquid Bitcoin (LBTC) this week.
This is according to Adam Back, CEO of Blockstream, a founding member of the Liquid network and one of its 15 functionaries.
For a few confusing hours on Monday, Mempool.space’s monitoring system displayed less than 3,463 bitcoin ($BTC) as the assets backing liabilities of 4,199 LBTC in circulation.
Shortly after, the website went mostly blank with a status message, “Indexing in progress.”
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Protos reached out to Blockstream for comment on the incident. According to Back, the error was the result of Mempool.space failing to track all federated wallets.
“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,” Back explained.
“They were notified, and promptly fixed that problem, and you can see on liquid.network that they are in the process of reindexing. The address they were missing is this one.”
At the same time, Blockstream’s independent dashboard showed 100% backing, with 4,199 $BTC in federated wallets.
LBTC also held its 1:1 price parity with $BTC during the time.