Yeah they already have so few users, just imagine when their distributed federation gets hit with orders to blacklist addresses or reveal peg-outs. Who knows how many of the federation entities are in a country that mandates compliance with these orders? 

Liquid is still linked via addresses. Swapping between liquid and lightning would be ideal if liquid had more users.

bitcoin

What are your thoughts on Bitcoin losing the Darknet

RedRadish688

Does liquid also obfuscate the source and destination addresses in order to prevent tracing? I thought it just obfuscates the amounts and type of asset used.