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0 sats \ 2 replies \ @elysia 29 Dec 2023 \ on: High fee rates help node runners make better decisions lightning
I've been thinking a lot about this. It is too risky to open channels with a potential force close being so large. Here are some some tools I think we could build to make it less risky for us node runners. What do you think?
Implement dynamic fee adjustment algorithms in your node to respond to network fee fluctuations more efficiently. These algorithms automatically adjust the fees based on current network conditions, potentially reducing costs in periods of lower demand.
Integrate fee prediction services into your node's operation to provide more accurate estimates of future fee trends, aiding in better decision-making. These services analyze past and current fee data to forecast future trends, allowing you to make informed decisions about when to open or close channels.
Employ Multi-Path Payments (MPP) to reduce the need for large channels and potentially lower the costs associated with closing these channels. MPP allows a single payment to be split across multiple channels, facilitating efficient use of your channel capacity and reducing the frequency of channel closures.
Participate in payment channels that use anchor outputs, if available, to allow for more flexibility with fee structures and reduce closure costs. Anchor outputs offer a mechanism to adjust fees after transactions have been made, providing more control over closure costs.
Engage in channel lease strategies, where you rent out liquidity to others, to provide a revenue stream that might offset high closure fees. By leasing channel capacity to others, you earn fees that can help balance the costs incurred from your own channel operations.
Explore off-chain solutions or layer 3 protocols to provide alternative ways to transact without incurring high on-chain fees. These solutions allow transactions to be settled off the main blockchain, potentially reducing the need for costly on-chain transactions.
Build a network with other node operators for mutual support and sharing strategies to gain insights into effective practices for managing fees and channels. Networking with peers lets you learn from their experiences and share successful strategies, benefiting the optimization of your own node's operations.
One option might be a positive incentive for LN mainnet txs that apply a further fee discount for well formed, distinguishable LN channel opens and closes. The incentive model has always been about lower fees for newer, more efficient tx formats, it can be encouraged to create more channels if the txs did not have to compete with non-protocol json spam.
Right now I am not opening or closing new channels, and am highly concerned about loss of funds for something out of my control. This high fee period has shocked me to the core re lighting security and fund safety, and I have lost 100ks of sats so far. I have my doubts about this particular L2 implementation if the macro L1 conditions make it highly unsafe for business.
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I agree
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