Aqua Reopens Lightning-Liquid Exchange via Internal Infrastructure

Aqua has resumed its Lightning Network and Liquid Network exchange functionality through its internally developed Indra system. Previously reliant on external services for exchange routes, the company has moved this capability to internal wallet infrastructure.

JAN3 announced the open testing of Indra on August 16. Indra is a dedicated Liquid-Lightning exchange system designed specifically for Aqua, supporting existing Boltz API signatures for 'plug and play' replacement infrastructure. Current functionality supports converting Lightning invoices into Liquid Bitcoin (L-BTC), with reverse conversion from Lightning payments to L-BTC planned for future implementation.

Aqua users can now utilize Indra without needing to operate their own Lightning nodes or manage payment channels. The non-custodial structure ensures service operators do not hold user assets directly, maintaining user control over funds. This transition follows Boltz's service discontinuation due to automated AI-assisted attacks and repeated vulnerability scanning that outpaced the small development team's response.

Boltz explained that its non-custodial structure prevented user funds from being at risk during the disruption. Aqua had previously relied on Boltz for processing Lightning invoices into L-BTC settlements after issuing Lightning invoices, as detailed in Aqua's June announcement about Lightning addresses.

Indra moves this exchange path to Aqua's internal infrastructure while JAN3 plans to add multiple Lightning exchange service providers including Blockstream Swap to avoid reliance on single services. Blockstream Swap announced its beta testing for Lightning-Liquid-Bitcoin exchanges on August 10, enabling Aqua to potentially operate multiple exchange paths and reduce disruption from any single service outage.

The Lightning Network is a second-layer payment solution designed for fast Bitcoin transactions, while Liquid operates as a sidechain network based on Bitcoin with L-BTC representing the Bitcoin asset tokenized within Liquid. Indra facilitates asset and payment request exchanges between these two networks. By supporting existing Boltz API signatures, Aqua can switch exchange service providers without significantly altering user interfaces.

Aqua's previous structure allowed managing Bitcoin and Liquid assets within a single wallet while utilizing Lightning payments. JAN3 previously described Aqua as a non-custodial wallet where users directly control their keys and funds. The Indra implementation maintains this non-custodial structure while diversifying exchange service providers.