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 yes, and there’s that

Why do you think a custodial Lightning wallet is more popular than a Liquid wallet? 
 I’ve never used Liquid or even seen it in action. Part of it could just be network effect and the proliferation and improving UX of Lightning wallets. What is Liquid currently used for that would make it appealing to new users? 
 I use it to swap for outbound/inbound liquidity on my lightning node using things like CoinOS, SideSwap, and Peerswap (p2p) . 
to be honest, it makes no economic sense to do it (which is why no one uses it) but after using lightning for a long time one tends to look for ways to mitigate hot wallet risk -- Liquid offers a solution to that  
 I believe the use case is still confidential transactions for large transactions 
 So…mainly for institutional use, whale traders, and exchanges? 
 That was who they were trying to market to I believe so. There were some efforts made for everyday use, but it just didn’t catch on.