Yes absolutely. But the risk is not zero.

2% low-risk growth in Bitcoin is pretty good despite what some might have you believe. Especially since it contributes to making BTC itself more useful and valuable. The risks here are actually much lower than lending your BTC to someone offering 5%+ yield

carelvwyk

I charge about .5% of the liquidity and guarantee to keep the channel open for 90 days. This gives me about 2% return on investment a year.

The market is currently evolving - everybody is testing out what makes sense and how the demand is structured. I do the same.

And yes - this undertaking is capital intensive.

zerofeerouting

bitcoin

AMA: I am zero fee routing - ask me anything!

Thank you for answering my question. Second question: the ratio of fee you charge to liquidity you provide is very low. In other words, just to make a few tens of thousands of sats you tie up millions of sats. How are you able to sustain this? Seems like you would need a very large initial investment for very small profits or am I missing something? Appreciate the time and detailed responses!