Nostr Web Client

So, on one hand you say "the bigger the better", on the other hand buying your channels is more expensive, the bigger they get. Like, for 3months 2x2m channels are 10k sats, but 1x4m channel is 15k, 50%+ and it gets worse the bigger the channel is.

I'm not complaining, the prices still look good, I was just wondering why that is, because in my experience it is cheaper to open just one channel, even if you batch-open the 2 and the needed funds are the same in both cases.

What am I missing?

LN⚡Server 1y ago

Hi lassdas!

It's your right to be curious and to seek answers! So here they are:

Regardless of the capacity being ordered, on-chain fees are more or less the same.

The reasons behind our pricing structure is that

A) Funds that get used to open channels with will be locked away from us for the life of the channel

B) Funds that get used to open channels with are at a MUCH HIGHER risk than when stored in our cold storages

The bigger the amounts of funds used, the bigger the risk is on us. That's why you see our prices increasing sharply with bigger capacities.

Additionally, as far as we know, we're the only LSP to offer spending capacities with every channel.

However, we are still MUCH cheaper than other LSPs. Check out their prices compared to ours.

If you have any more questions, please don't hesitate to ask 🤗

Reply to this note

Please Login to reply.

Discussion

lassdas 1y ago

I get that (A+B), but the funds-at-risk are the same in both described situations!

To open 2x2m channels you need 4m funds and I pay you 10k sats,

to open 1x4m channel you need 4m funds and I pay you 15k sats.

The on-chain fees are obviously higher on the 2x2m channels option, yet it is cheaper for me to buy them instead of 1x4m.

That's what doesn't make sense to me.

lassdas 1y ago

And yes, you are cheaper then other LSPs, at least for the "smaller" channels, comparing 10m-channel prices there's others cheaper than you and only because your 10m channels are twice the price of 5x2m channels. I said it gets worse, the bigger the channel is.