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21 sats \ 24 replies \ @SwapMarket 22 Sep \ on: Can I Use Coinos as a Swap Exchange as an Alternative to Boltz? bitcoin_beginners
Coinos have low liquidity in popular directions LN->BTC and LN-LBTC. So there is a good chance you'll have to withdraw via LN, paying the routing fees twice for nothing.
How do you know this? Is there any trustworthy site or public data on this liquidity metrics (also, how to measure and interpret them) of different platforms like Coinos, Boltz, Zeus etc.?
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I have been Coinos lightning and peerswap peer for a while. I also see the prevailing flows on my Boltz backend. Most volumes go from LN to BTC because people want to anonymize their cold storage sats.
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The routing fees on Coinos are significantly lower than any other platform.
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But LN routing fee to Coinos are high, unless you have a direct channel.
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If that is the case, perhaps other LN wallets need to set up better routing channels to Coinos, instead of obstructing them because Coinos offers significantly lower fees than them.
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Coinos charges 0.4% "platform fee" for BTC withdrawals (plus chain fee). This is by far the most demanded service. Retailers get LN sats and withdraw onchain to cold wallets. So Coinos node is a sink, peers must set high routing fees to it so that the channels don't drain very fast.
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Retailers get LN sats and withdraw onchain to cold wallets. So Coinos node is a sink, peers must set high routing fees to it so that the channels don't drain very fast.
Fascinating.
Could they do something about that? Like do something to offset the sink-effect?
E.g. offer some service that is a net sats filler, offset the sink effect such that peers can rebalance the channels?
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Not really. Their business model is to help retailers accept Lightning Bitcoin.
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When I use Coinos I load BTC from L1 or L2.
I think many other Coinos consumer users would do the same.
Coinos is not only for retailers but also people who want to spend sats and your assertion that they are a sats sink is highly contestable - a lot of consumers load sats into coinos to spend them.
As seen on trustpilot there looks to be a some competitors fucked off that Coinos offers such a great low fee product and these competitor appear to be seeking to dis and defame Coinos because these competitors do not offer such a good low fee service.
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a lot of consumers load sats into coinos to spend them.
Is it, functionally, same as, for example, loading sats into my Blockstream green lightning to spend at retailers? Both non-custodial, right? That means coinos can rugpull my lightning sats as much as Blockstream green?
Sure, lots are using as a wallet to pay sats and zap on Nostr. But these are small balances. Custodial lightning is risky, and Coinos lost customer funds in the past. So all large balances get withdrawn to L1.