pull down to refresh
55 sats \ 13 replies \ @kepford 29 May \ parent \ on: CashApp is making nearly 10% APR (aka yield) on its bitcoin via lightning lightning
Routing payments would be my guess. Is that it @k00b?
My node is not giving me yield :) not in sats at least.
reply
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
reply
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.
reply
reply
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.
reply
According to Alex Bosworth, some people route at 4000ppm with LOOP. Even used to be 7000 pm at some point. 0.4 and 0.7%, respectively. You can see it accumulates quickly if you do it several times per day.
reply