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I wonder if some of the problems leading to insufficient liquidity allocation are:
  1. that Bitcoin currently self-generates "yield" in USD terms merely hodling it
  2. there's the perception that you can't generate meaningful yield on lightning yet
  3. a lot of folks using lightning are hobbyists and earn yield in a non-monetary way (wow the future is cool feelings) so aren't motivated to seek monetary yield
P.S. Roy really knows how to communicate well - the metaphors were top notch.
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Guy Swann has some great additional analysis on this episode - https://play.fountain.fm/episode/6872765921
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Well lightning network is considered decentralized finance https://www.defipulse.com/projects/lightning-network
It works when nodes have many channels and have liquidity to help move payments around and get paid for forwarding payments to the next hop.
I'd say its more decentralized than most "defi".
  • Different client implementations of it
  • Different bitcoin node implementations of it
  • Way more nodes are being run than "defi" right now
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