Author: lisa neigut 2018-11-12 09:42:13
Published on: 2018-11-12T09:42:13+00:00
The proposed solution to the liquidity discovery problem on Lightning Network involves allowing nodes to advertise initial liquidity matching through their node_announcement. The proposal aims to let nodes independently source inbound capacity from a market of advertised liquidity rates set by other nodes. A new feature flag, option_liquidity_provider, is added to the node_announcement which includes data such as a fee charged per satoshi of liquidity added at channel open and base fee charged for providing liquidity at channel open. The open_channel includes a new feature flag (channel_flags) named option_liquidity_buy, where push_msat is set to fee payment for requested liquidity and liquidity_msat_request indicates the amount of dual funding requested at channel open. If a node cannot provide the liquidity requested in open_channel, it must return an error. It's an open question whether a liquidity advertising node should include a maximum amount of liquidity that they will match/provide.While some are concerned about incentives for leaches to arise that accept the fee then insta close, others see this proposal as paving the way for automated node re-balancing and creating a market of inbound capacity that any node can take advantage of, reducing the amount of out-of-band negotiation needed to get the inbound capacity that you need.
Updated on: 2023-05-25T15:22:57.564871+00:00