There also is the ecash component, true, final settlement is onchain. But moving from ecash to channel balance is a l3->l2 settlement too! Settlement is any layer transition, not just onchain.

ZezzebbulTheMysterious

Okay, I think I get what you're saying, but to me that means that there is a benefit to 

, which I agree with. But that doesn't make LN a settlement layer, it makes it a I'm-not-settling-yet layer.

lightning

Lightning swaps *are* the connective tissue - btc++ Insider

Scoresby

Okay, I think I get what you're saying, but to me that means that there is a benefit to **not settling**, which I agree with. But that doesn't make LN a settlement layer, it makes it a I'm-not-settling-yet layer.