31 sats \ 0 replies \ @shibe 17 Jul 2023 \ parent \ on: Binance Officially Integrates Bitcoin Lightning Network bitcoin
It was a joke about how much Binance charges for BTC withdrawals while displaying the fee as "network fee". I haven't used Binance in months but I remember it being ridiculously high, something like $10 or $15 even when on-chain fees were low.
Right now it's $1.5 (0.00005 BTC) network fee. This sounds reasonable, until you consider the following:
- On-chain feerates are currently around 6 sat/vB which comes out to around $0.25 for a segwit transaction
- Since Binance batches withdrawals, the cost for them to process your withdrawal is actually far lower than $0.25. The more outputs a transaction has, the cost per output asymptotically approaches (size of output * feerate)
Anyways, this announcement gave me a reason to log into my Binance account and check out what they're charging for Lightning. They give a fee range of 0.000002BTC-0.00013BTC ($0.06-$3.94). This still seems too high by Lightning standards even when you account for proportional fees for very large withdrawal amounts. I have also never paid anywhere near $0.06 for small transactions of $1-20 on Lightning, so it still seems theres a Binance tax added to this.