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131 sats \ 1 reply \ @petertodd 26 Dec 2023 \ parent \ on: SlushPool(Braiins) is dying. Here's how to save it bitcoin
Obviously the simple answer here is to not pay out until the coinbase matures, or borrow funds to be able to pay out immediately. This is a simple time-value-of-money problem. At 10%/year interest waiting 1 day costs ~0.03%
Fair enough, perhaps it is a negligble concern at Braiins scale. I am only trying to form a fuller model of the cost inputs for my own understanding, as pools live and die on the margins, particularly in FPPS schemes. I believe you confirmed that there is not quite a way to avoid some pre-commitment of capital, but please correct me if I misunderstood
A rough cost formula might then look like;
((Channel Open fee + Channel Close fee) * (Frequency of open/close)) + (Payout Capacity * TLV of BTC)
Cost variance appears to greatly hinge on the number of channels the pool operator must maintain, with 1 large channel to a large node being cheapest, and per-client channels to individual nodes being most expensive. Reliability of the payment being delivered follows inversely, highest by per-client channels, lowest thru the general network, with some potential cost of inbound liquidity borne by the client as reliance of using the general network increases
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