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111 sats \ 2 replies \ @justin_shocknet 15h \ on: Question of trust regarding LSPs lightning
Channel prices used to be absurdly low, because LSP's thought they'd make it up in transaction fees before reality set in.
LSP is a terrible business, you're trying up capital in a hot wallet which involves risk for very little return in tx fees... so lease rates should trend toward reflecting both risk, and eventually opportunity cost once there's more legitimate Bitcoin "yielding" opportunities.
So, I expect prices will go up further. You'll probably find the channel closed if you don't use it enough or its too unbalanced to be economical for the LSP.
For a bit of history, Voltage created the "Flow" spec for LSP's selling channels that Zeus is now using. Voltage themselves stopped selling channels (at least to their non-hosting customers?) altogether last year, they were insanely cheap... Zeus is at least sane and charges a much higher rate.
This is why mobile nodes are a dead-end, they're too costly to maintain for the low volume and online-ness of a mobile device. The solution is a shared node used by multiple things to consolidate utility, we use Zeus as the preferred LSP in Lightning.Pub so you can have multiple devices / apps connected to something always online and accessible over Nostr.
transaction fees before reality set in.
As in routing tx fees?
This is why mobile nodes are a dead-end, they're too costly to maintain for the low volume and online-ness of a mobile device.
Too costly for the users or the service providers? I would guess that LSP market is mainly comprised of people who put a high value on the convenience of not having to self-host. It is a good price for a noob to start learning and is not as steep a learning curve as a self-hosted set-up.
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As in routing tx fees?
Correct
service providers
This one, they need to be compensated for tying up and risking capital in a hot wallet.
Yea LSPs are absolutely selling a convenience product, it's just a bad business without charging high fees... and it's the high fees make mobile nodes non-sustainable.
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