Author: ZmnSCPxj 2022-10-10 07:38:48
Published on: 2022-10-10T07:38:48+00:00
The article discusses the concept of market rate for Lightning Network liquidity. The author suggests a heuristic for payment success, which involves considering a path costing function that determines the distance between the feerate at each hop and the market rate feerate. Payers can use this heuristic to avoid losing money on paths with high feerates or to avoid channels with low feerates as they are likely to not have available capacity due to rebalancing bots targeting them. The author notes that this heuristic is particularly relevant to proposals like Lisa's proposal where channels have sets of four different feerates. Payers using the "zero free routing" heuristic will select the feerate card closest to the market rate and attempt a different rate card only if the payment fails at that hop. However, rebalancing nodes will still target a very low cost by ignoring the market rate and always looking for a bargain.
Updated on: 2023-06-01T19:09:30.085286+00:00