Published on: 2019-01-15T12:22:52+00:00
In an email discussion about Lightning Network (LN) payouts, the issue of routing fees in custodial cases is brought up by a member named ZmnSCPxj. The main question revolves around whether the sender should deduct routing fees from the user's account when making a payment using a user-provided invoice.One concern raised is the potential for an attack on custodial services. It is suggested that an attacker could exploit the system by creating numerous invoices, each with a value of 1 satoshi, and have the custodial service pay them. This would result in routing fees that equal or exceed the invoice amounts. To address this issue, it is proposed that either a withdrawal limit or a minimum withdrawal amount be imposed.However, another solution is presented, which involves the custodial service deducting routing fees from the user's account. This option is seen as undesirable because the routes and fees are controlled by the sender, not the receiver. It is argued that custodial services cannot be relied upon to securely hold substantial amounts of money for extended periods of time. Consequently, any user experience problems associated with custodial services are considered inconsequential.From a user experience perspective, having a well-connected node with well-funded and balanced channels is deemed more important. While refusing to pay a smaller invoice may be feasible, the inconvenience of waiting for a new channel to open could potentially deter users. Therefore, the deduction of routing fees is an aspect that needs to be taken into consideration.In conclusion, the issue of routing fees in custodial cases is discussed, highlighting the potential risks and proposing various solutions. The general consensus is that custodial services are not trustworthy for long-term storage of significant funds, rendering any user experience concerns largely irrelevant.
Updated on: 2023-07-31T21:23:25.709880+00:00