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61 sats \ 1 reply \ @DarthCoin 6 Apr \ parent \ on: Liquidity squeezing from your node lightning

The big problem that cause this situation is:

  • most of the people are using LN to buy from exchanges like robosats and others supporting LN withdraw. That makes huge liquidity movements from one side to another.
  • then these same users are swaping out from LN into cold wallets. Again a huge liquidity movement on the other side.

This is not a normal use of LN, so the routing nodes MUST find quickly liquidity and make a lot of rebalancing. This will create a snowball of actions forcing one into another node to do the same, like a race who can rebalance quickly.

If LN will be used a just a normal PAYMENT NETWORK (as it is), just to buy groceries and stuff like that, sporadically day to day use, will not be any of these problems.

But Bitcoin and LN will be continuously challenged with such cases and we have to adapt or find solutions, plugins, tools etc.

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0 sats \ 0 replies \ @BallLightning 6 Apr

I think even in the ideal world that you see, the situation will be the same. Imagine a works where most people work jobs and get monthly salary and everything is in bitcoin. These people will get their salaries via lightning, they will go to buy some stuff, but they will also save some of the sats. That means that they will still be a liquidity sink for the network. Even in the circlularest of the all circular economies ⭕⭕⭕.

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