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Thanks to @DarthCoin for encouraging me to make this post!
I first heard about LN from a post on r/bitcoin, and it got me really interested! I had been using bitcoin on-chain for a while, but I hadn't really checked out the layer 2 networks before because I thought they were just like shitcoins. But after reading the whitepaper, docs.lightning.engineering, and the LND and CLN documentation folders, I decided to give it a shot.
Since my vpn accepts btc-ln as payment, I downloaded the latest release of LND at the time, 0.16.4-beta, and set up a personal node on a linux box I had lying around. I opened a couple of channels with around 700k sats and let it sit for a while as I learned more about how LN works. I wasn't sure about becoming a routing node until I stumbled upon Darths blog posts and tools like charge-lnd, LNDMon, and Ride-The-Lightning, which gave me the confidence to go for it!
I renamed my node to Fopstronaut and opened two larger channels, with the goal of helping decentralize the network by avoiding big hub nodes like ACINQ and creating alternative routes. When I successfully routed my first payment, I was thrilled and just couldn't wait to keep exploring the Lightning Network!
I found out about LightningNetwork+ thanks to Nostr, and I decided to give it a try by joining my first liquidity swap, #18323. After that, I ended up creating and joining 7 more swaps over the next few months. At one point, I think I had over 20M sats in capacity! Liquidity swaps are awesome because not only do you get two channels for the price of one, you make the network stronger - it's a win-win for everyone!
Using tools like Amboss and SparkSeer to look up nodes, I got myself into a good spot in the network by reducing my betweenness and hopness. If anyone has any tips on improving my scores, I'm all ears! I set up automatic fees with charge-lnd and joined #ZeroBaseFee, gradually bumping up my fees from 10ppm to a range of 20-70ppm. It seems to be doing the trick for me! I've looked at circuit breaker too, but I'm a little concerned that the default settings might be too strict and mess with my routing.
I decided to challenge myself and try passive rebalancing, and i've had some success! I was routing over a dozen payments a day at one point, and even peaked at 27, all without needing to rebalance manually! My strategy was to use charge-lnds proportional strategy with a wide fee range, around 40ppm, to signal the available liquidity in my channels. I try to steer clear of actively rebalancing whenever I can, usually just dropping the fees or asking your channel partner to adjust theirs will unstick a channel!
I've more recently also started capping the max HTLC at set intervals as my channels fill and drain to avoid running into insufficient liquidity failures. This strategy has been a game changer! I've noticed that having 3-5 HTLC limit stops along a channel seems to give senders enough info to route correctly, and I'm hardly seeing any insufficient liquidity failures now. I'm really stoked about how things are going! And, setting up LNDMon has been amazing! It's been so helpful in figuring out how my node is doing, and what changes to make!
Everything changed when the Ordinals nation attacked, and the high fees forced six of my busiest channels to close. It was a major bummer, but I'm staying positive - at least I weathered the storm better than others. Some of my old neighbors have totally shut down, which is a shame, and ever since then I've been having more downstream failures. Despite those setbacks, I'm determined to keep growing slowly and hopefully increase my routing even more in the coming year. I've learned so much and had a blast! I can't wait to see what's next on this journey!
tl;dr I smoked one Bitcoin and now I have a routing node :3
Some of my old neighbors have totally shut down, which is a shame, and ever since then I've been having more downstream failures.
I closed down my routing node before that, but I agree that it was a blast while it lasted. I haven't followed much the field and only rarely check out the old telegram groups where node runners were helping each other out. Some groups still seem quite active while others seem to have died out.
As for the quote above, do you feel there are still newcomers joining the game, or it's mostly the same old nodes controlling the whole space? Is the capacity increasing, decreasing or roughly the same (in Bitcoin terms and in fiat terms)? I experienced the golden age of Umbrel users. The hype was high, the worries were low. The Ordinal nation attack probably has killed most of these, and I wonder if it's just the very technical ones that are able to weather these storms. LN is definitely entering its maturation phase, so its good the hype is dying out to be replaced by pragmatism and capable routing nodes.
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There are usually some newbies joining swaps on LN+, but it looks like the veterans like ACINQ are still the big players on the network. I think the tech-savvy users handled the recent attack pretty well. While GUI node tools are cool, I feel for some tasks digging into those configuration files is better, like when setting up automated fees with charge-lnd. It's all part of the learning process, right?
My routing rate has taken a bit of a hit lately since the ordinals, I think because the current routes aren't very balanced. Maybe it's because we're all being more cautious and not opening as many channels. But with low fees and the recent price drop, I'm hopeful that more people will start setting up nodes and opening channels soon!
I've been noticing that BTC capacity is slowly going up, and there's been a nice jump in USD capacity too thanks to the recent uptrend. It's exciting to see the network growing!
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Great! Thanks for sharing. I run a node too if you ever want to partner up with a channel let me know!
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That sounds awesome! Just hit me up on LN+ whenever you have time!
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Well done! Now is time to consider this new rebalancing method:
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Liquid injects liquidity!
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I'll check that out! It would be awesome to help my peers out, even if I don't end up using it for myself :3
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I couldn’t make my routing business work, there wasn’t enough demand
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Keep your spirits up! You'll make it!
Thanks for this amazing post!
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good info! thanks!
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