Subnostr

Ok so if you want to have the capacity for 100,000 sats you could open up a channel with 100,000 and then send most of it back to yourself on chain? Also, you get a seed phrase for a lightning wallet right, so it’s like a hot wallet? If you break your phone, you can just reboot it on another phone?

As for the custodial services, I’m not super concerned about custody with small amounts. Is it the case then that custodial lightning wallets are still safe from a regulatory perspective, but WoS and Phoenix just backed out of America preemptively bc of the Samourai stuff?

makeasnek 11mo ago

> Ok so if you want to have the capacity for 100,000 sats you could open up a channel with 100,000 and then send most of it back to yourself on chain?

Yes exactly

> Also, you get a seed phrase for a lightning wallet right, so it’s like a hot wallet? If you break your phone, you can just reboot it on another phone?

Yep

> Is it the case then that custodial lightning wallets are still safe from a regulatory perspective, but WoS and Phoenix just backed out of America preemptively bc of the Samourai stuff?

Exchanges are required to do certain KYC stuff, but that's US law, and many of these custodial wallets are outside the US. Are custodial wallets which offer no fiat conversion options exchanges? Debatable. All these regulations at present are aimed at exchanges, not users, I know of no situation where a user was prosecuted. There is legal ambiguity for exchanges and custodial wallets and so they are scared to serve US customers. Make sure you contact your representatives if these issues are important to you https://myreps.datamade.us/

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Discussion

Foxfire Mushrooms 11mo ago

Thanks so much! My last question is, you say open the wallet once a day to accept pending funds. Is this just good practice or is there actually a timeline on accepting those funds? What if you waited a week?

makeasnek 11mo ago

Zeus uses hodl invoices to make receiving zaps non-custodial. If you don't accept them within 24 hours, they expire. Essentially, they can receive a payment for you and then either complete it by forwarding it onto you or reject it, but they can't take the funds themselves. https://www.voltage.cloud/blog/understanding-hold-invoices-on-the-lightning-network

makeasnek 11mo ago

If you waited a week, the payment would fail, and whoever zapped you would receive their sats back. Or, to speak more correctly, their zaps were never sent in the first place.

Foxfire Mushrooms 11mo ago

I just thought of a new question. As long as you claim the payment within 24 hours, are the funds in your wallet at risk if you go an extended period of time without opening it?

makeasnek 11mo ago

Since they are in lightning, yes, in theory, you should open your wallet once every week or two depending on the settings of your channels. If you use an LSP, and you trust your LSP not to rug you, don't need to worry about it. In practice, the attack where somebody tried to rug you by force closing a channel with the incorrect amount of unheard of. I don't know anybody it's happened to. If they are caught (by the blockchain/your wallet), there is a significant penalty, and it's all automatic, so there's really no incentive to try to cheat the system.