Liquid Network

# Confidentiality Made Affordable: ELIP 200 Unlocks up to 90% Lower Fees on Liquid

Blockstream Team
Jan 16, 2025

As the technical providers for Liquid, we are excited to announce the release of Elements 23.2.5 and the deployment of ELIP 200: Discounted Fees for Confidential Transactions on Liquid mainnet.

The new fee policy offers up to 90% reduction in Confidential Transaction (CT) fees, significantly lowering the cost of sending Liquid assets. For example, a confidential USDT-Liquid transaction that previously cost 250 sats in fees now requires only 25 satsвЂ”around 0.03 USD at current Bitcoin prices. This makes Liquid a compelling option for sending cross-border remittances or stacking bitcoin in a high-fee environment.

Comparative chart showing average fees across multiple USDT chains.

## Road to Discount CT

The journey to Discount CT began with the prior Elements release, where ELIP 200 was enabled on Liquid testnet for relay. Federation members like Boltz, alongside key partners, collaborated over several months to test and refine the policy. This process, supported by the Liquid Technology Board, ensured optimal transaction costs without compromising LiquidвЂ™s hallmark features such as confidentiality, asset issuance, and high uptime that users and developers have come to rely on.

With fees now dramatically reduced, LiquidвЂ™s financial privacy features are more accessible and affordable than ever before. Confidential Transactions were already the default type on Liquid, but by reducing fees to match those of public transactions, we can further incentivize the adoption of Liquid as a competitive rail for USDT. This is particularly beneficial in emerging markets served by user-friendly wallets like AQUA, Green, and Bull Bitcoin.

## Explorer and Seed Node Updates

In conjunction with the Elements 23.2.5 release, BlockstreamвЂ™s open-source Bitcoin and Liquid Explorer has been updated to support the new CT fee policy. Developers and exchanges can now leverage the latest Explorer API to validate transactions with improved fee transparency and performance metrics.

Additionally, Liquid seed nodes have been updated to fortify the networkвЂ™s functionary security, which underpins LiquidвЂ™s federated model. Seed nodes connect user-run Liquid nodes to the functionaries and act as an additional layer of protection against Denial-of-Service (DoS) attacks.

## Liquid Developer Bootcamp in El Salvador

In other news, we have locked-in the next Liquid Developer Bootcamp, scheduled for February 3-4, 2025, after the Plan B Forum in San Salvador, El Salvador.

The bootcamp is an integral part of our global outreach efforts to expand the Liquid ecosystem and foster developer engagement. This two-day training will offer hands-on sessions led by Liquid experts, equipping participants with the knowledge base and tools to build innovative applications on Liquid.
Registration (below) for the bootcamp begins today and is limited to 35 seats. For further questions, please DM us on X or ask in the Liquid Community Telegram.

## Join the Liquid Community and Start Building

We are also unveiling a new resource for developers in the Liquid ecosystemвЂ”the BOL2 platformвЂ™s Bounties and Opportunities page. Going forward, this page will serve as a central hub where members can list:

- Bounties for exciting Liquid-related tasks.
- Job opportunities within the Liquid ecosystem.
- New technical projects to help you build your developer portfolio.

Make sure to bookmark and check back frequently for the latest updates. This is your chance to take an active role in shaping the future of Bitcoin and Liquid.

Finally, we want to thank the Liquid Federation, the community, and contributors for their continued support and look forward to the transformative impact of this release on ecosystem growth and Bitcoin capital markets. For more technical details, check out the Elements 23.2.5 release notes.