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0 sats \ 5 replies \ @south_korea_ln 29 May \ parent \ on: CashApp is making nearly 10% APR (aka yield) on its bitcoin via lightning lightning
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.
That is only attractive on the surface. Your other channels will quickly become 100% local balance, so you will have to constantly source inbound liquidity. That is too much work and annoys peers if you constantly close their channels. That is why I don't do it.
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Yeah, that's indeed not the full picture i gave.
I had however managed the rather pleasant scenario where people would just keep opening channels with me basically becoming the N-2 node towards LOOP. As i would very actively rebalance, they could set high ppm towards me and profit down the river. I ended up with 3 to 1 rate in terms of inbound versus my outbound. It happened naturally without me looking for extra inbound. People would just tell other people to open with me and they'd profit.
That was a few years back, so not sure how it works now.
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Then I don't understand those people. They should have opened directly to LOOP. Inbound is expensive these days...
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It was the days of Umbrel plebs. Many people didn't understand what they were doing.
Many likely didn't know i was using them for LOOP liquidity. They were just happy to see routing activity.
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