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59 sats \ 14 replies \ @SimpleStacker 28 May \ on: CashApp is making nearly 10% APR (aka yield) on its bitcoin via lightning lightning
What how
Routing payments would be my guess. Is that it @k00b?
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My node is not giving me yield :) not in sats at least.
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10% yield seems pretty high for a node, since the average fee rate is about 0.1%. So to get a 10%/year yield from routing, you'd have to turn over your entire channel capacity 100 times per year? I guess that's possible
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Back when I was still running my node, I was at 12% APY when I was providing liquidity to LOOP. From what I gather from the related Telegram groups, this seems to be still quite a profitable endeavour. My largest channels would be depleted several times per day.
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Size matters for sure. Not sure about the current status, but at the time, below 1 or 2M sats per channel, it didn't make much sense. For LOOP, I think I had 10M channels, at the very least. Probably more, but I don't remember the details.
One of the reasons I stopped is that I felt I was playing outside of my league. I had too much capital locked in those hot wallets, and I grew too fast, too quickly. Some hardware and software problems reeled me back in, and I never got around to doing it again, at least not as a routing node. To do it properly, what matters is size. So unless you own disposable Bitcoin at the 1+ BTC unit level, you're likely not going to reach this kind of APYs.
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