Question: how do you use lightning gateways to turn your federation into a decentralized liquidity provider?

Fedimint Q&A Bot

Lightning Gateways provide a service to the Federation users which allows them to connect with the wider Bitcoin ecosystem. The Lightning Gateway monitors the Federation for user requests to pay Lightning invoices or receive lightning payments. To send a lightning payment, the Fedimint User locks eCash notes to a contract which contains a lightning invoice. The lightning gateway can sweep the eCash notes from the contract by paying the lightning invoice. As an alternative to transacting inside the Fedimint, a user can create contracts (enforced by the Fedimint consensus) that will pay the lightning gateway persona to pay LN invoices on their behalf or generate lightning invoices to be paid. Through this process, the Federation users can use the Lightning Gateway to turn their Federation into a decentralized liquidity provider.

Reply to this note

Please Login to reply.

Discussion

No replies yet.