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718 sats \ 2 replies \ @super_testnet OP 28 Apr 2023 \ on: Swap service: a nostr orderbook for submarine swaps and earning yield on bitcoin nostr
Swap service is an orderbook for performing submarine swaps over nostr and a way for bitcoin users to earn yield on their bitcoin
More info: https://github.com/supertestnet/swap-service
Try it out: https://supertestnet.github.io/swap-service/
Earn yield: https://github.com/supertestnet/swap-service#installation
Submarine swaps are an important feature of the lightning network. They allow lightning users to swap funds on lightning for funds on the base layer, or vice versa, without needing to open and close channels, and without needing to give custody of their money to other people. They also allow easier channel rebalancing and they are also the basis for important wallets and services like muun, lightning loop, and boltz exchange.
However, there are not very many submarine swap providers. Sometimes I wonder if the ones who exist are overcharging, and I also just think it would be cool if anyone could profit by offering submarine swaps easily from their own lightning node. With lots of participants, costs may be driven down close to zero.
Swap service tries to be an easy tool for anyone to do that.
Yep. Projects of this kind could also become sort of giant mixers, allowing anons to swap coins or to directly pay in a really private way if the liquidity is enough and not to concentrated.
Do you plan to make it more pleb friendly one day ? Like kind of an Umbrel app for anyone to be able to easily connect to their own LN node and quickly add liquidity ?
And other question, does it work both ways reverse submarine swaps and submarine swaps as well, or just LN-->on-chain ? I think their may be a trust issue for on-chain -->LN swaps but I'm not sure.
Thanks !
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Yep. Projects of this kind could also become sort of giant mixers
Yes I'd love to see a privacy focused version someday. If you use musig-based submarine swaps instead of segwit-based htlcs then the cooperative case looks like a regular bitcoin transaction, except the two parties swap their utxos. Which is awesome for privacy.
Do you plan to make it more pleb friendly one day ? Like kind of an Umbrel app for anyone to be able to easily connect to their own LN node and quickly add liquidity ?
I don't personally plan to submit it as an umbrel app but it's public domain software. If it grows in popularity I expect that someone will make an umbrel app for it, which I would love to see.
other question, does it work both ways reverse submarine swaps and submarine swaps as well, or just LN-->on-chain ?
This is an interesting question. Technically it works both ways because every submarine swap from Alice's perspective is a reverse submarine swap from Bob's perspective. In other words, if you want to buy sats on the base layer, use the website, and if you want to sell sats on the base layer, run the software. Technically that means it supports both.
But I definitely want to update it so that people who run the software can also post offers to buy sats on the base layer and pay a lightning invoice in return. Then I can make a clone of muun wallet but based on a distributed network of coordinators (i.e. everyone running this software) rather than relying on a single company to do all the swaps.
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