That's not so. It's literally just Bitcoin moving from [address A] to [address B] like any other Bitcoin transaction you see on chain. Impossible to know from someone observing the chain that it was actually a swap for Monero.
How would the feds know you swapped your Bitcoin to Monero or vice versa? It would literally look the exact same way as above if they were monitoring the chain. They have no insight into the other side of the swap or why it is moving.
Unless your peer doing the swap with you was a fed? Then ok, yes, but that's different. And if you were going from BTC -> XMR in that case it wouldn't matter to some extent if they were a fed because they couldn't trace the XMR they gave you. Thanks to stealth addresses they would have no clue where it really went.
I'm just trying to give you the correct info. From there you can decide whatever you want to do. Use monero or don't use it. Up to you.
Scroll down to "⭐WHERE CAN I SPEND MONERO?" Monerica directory has many options especially:
https://pb.envs.net/?8c6e45d76a233681#GRCjqnVXPVMqzbZB9xjMAMTaMCrNGNRF5pYCKojtffjm
Ok, so if I'm trading you p2p on something like AgoraDesk or Bisq there isn't a special address on Bitcoin that is only used specifically for swaps, so I'm not really sure what you mean. It's just me sending Bitcoin from my bc1 address to your bc1 address. Many even offer PGP to communicate so AgoraDesk has no clue on any details about the txn, unless a dispute arises you can reveal your conversation, but that is very rare. I've never had to do that and been using both for years.
Even for atomic swaps, AFAIK, they might have metadata like a hash or something that might stand out more from average txns, but there is nothing that would tell you it was specifically for a Monero swap or a swap at all.
I know specifically for BasicSwapDEX they go a step further and use adaptor signatures and Scriptless Scripts that work off-chain to hide what little there metadata there even is, but I can't tell you the specific details on how it works off the top of my head.
Liquid only hides amounts. It's still traceable because senders and receivers aren't hidden. Custodial too.
https://tlu.tarilabs.com/cryptography/introduction-to-scriptless-scripts
Notes by d4e3a3fd | export