I'm sorry, but you can't compare this to Liquid. Liquid is a federated sidechain of centralized services (BitFinex, Kraken, BTCC, Xapo, Unocoin). To begin with, the users of these services have to trust those companies. On top of that, the Liquid sidechain depends on the participating companies trusting each other. So you really can't compare that to what we're trying to accomplish here.
By the way, it looks like you modified your post before I got a chance to respond. But since you were wondering why I wasn't taking your explanation at face value, it's because you're not the expert. So I continue to address @bytemaster with my questions since he IS the expert. And I asked for @abit's opinion since he is a developer and, for all we know, he could be the one to code this up ultimately. Surely you can understand where I'm coming from.
In any event, I'm really not sure, but something tells me that what I'm proposing is very much doable. It would be great if @bytemaster would speak to it specifically. If it can't be done, please explain why. Thanks!
What you are talking about is going to be costly on several fronts.
It doesn't matter if it's possible or not.. sure it's possible.. you don't need bytemasters validation on that.. anything is possible with enough money put into it.. the question is if it is practical.
Can you drive a tank from home to work every day? Sure.. is it practical.. no.
Given the costs involved what we need is a lean and simply implementation that is going to cost the least amount while accomplishing the essential functions.
Having our own Liquid with 5X the security and decentralization of what they have done is plenty of assurance for the target audience that would want to use this.
If you want to spend a lot of money on anti-trust this current market simply won't support it.
All too often simple solutions are pushed aside in favor of complex ones that are designed to suit strawman issues. I rather have a quick to execute and elegant simple solutions that accomplishes the task.
Anyways.... keep plugging away at it.. the more difficult we make it the less likely it is to be done due to costs that stakeholders will be unwilling to shoulder because of diminished returns. Lower cost means greater returns.