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7 sats \ 14 replies \ @Natalia OP 30 Nov 2023 freebie \ parent \ on: The Art of Swapping 🔁 bitcoin
yes, but it's the sender who is paying for the fee tho?
e.g. when you are swapping from Onchain to LN, you are the one sending the Onchain and pay for the mining fee, and Robosats only sending the LN, I don't understand why they are charging so much fee in this case? 👀 it almost feels like you are paying for double mining fee.
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but even from LN back to Bitcoin, it's also more than the normal network fee, I'm really curious how the fee is being calculated, checked their docs but not much there 😂
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The docs are fairly technical and assume you already know how atomic swaps work. We'll add an high-level overview. That is very good feedback! We are doing atomic swaps for far too long so we sometimes assume everyone knows...
Apart from that the concept always consists of two steps as Michael explained further down: first lock coins then claim them atomically. For the chain part of the swap that always means two transactions.
For chain -> LN swaps transaction cost is X (estimated based on current mempool high priority fee) because user wallet already pays for the lock transaction.
For LN -> chain swap transaction cost is ~X*2 because user needs to pay for both lock & claim transaction.
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and how the refund works - how can it be so automatic? 👀
yes, it's quite fascinating! and I'm really curious how they even set things up, because it works so well - especially when you go to claim refund, wow so fast 🚀😂
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That is also a good guide about fees.
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I read this one before, but it doesn't explain how Boltz works 👀
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is more about fees
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Hi! Michael from Boltz here
Gotta admit the docs are fairly technical. Guess we should do some high level architecture overview there or some blog post explaining how swaps work.
About the miner fees:
Going from Lightning -> Bitcoin: yes, it's more expensive than a normal transaction because such a swap requires 2 transactions. And the second one is bigger than a "normal" Bitcoin transaction.
Also when going from Bitcoin -> Lightning, there is a miner fee. Because need to do a transaction after paying your invoice.
That's the overhead of being non custodial and doing submarine atomic swaps. That being said, we are working on making those miner fees much cheaper ;)