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With the whole Wallet of Satoshi situation that happened last night, my mind has been racing around what solutions there are in a sustained high-fee environment.

Me thinking out loud

I am curious if a solution like this could work in one wallet like Blockstream Green:

Create a wallet and it auto-creates:

Savings Account: Bitcoin Wallet

Checking Account: Liquid Wallet

Walk-around Wallet: Lightning Wallet

You can provide the lightning liquidity like Breez does, but you do not try to make up for the cost of this by charging high fees on the lightning network. You can make consistent money in a Boltz.exchange type service you will offer. You should also offer more advanced options where more users can open their channels and handle it.

Autopilot for the wallet via swaps. So let’s say you auto-open 200k sat channels for people. In settings, you can have auto-swap thresholds. If you hit 80% of the lightning channel on the send side, swap out 50% to the Liquid wallet. When the Liquid wallet hits .05, swap to on-chain BTC. This way, the on-chain wallet has fewer higher value UTXOs, so you are safer in a higher fee environment to be able to move those UTXOs with the lowest fee possible.

Or let’s say you only have 100k receive capacity, but you try to receive 150k via lightning. The autopilot is smart enough to auto-swap to Liquid to make space for you to be able to receive on lightning.

I’m sure smarter people than me can make some version of this work really well. Just an idea of how Liquid can maybe play a role for more people and might be very useful in a sustained high-fee environment.