Submarine swaps what that mean. i use muun wallet when send to hardware wallet because just have muun can control fee
Discussion
Submarine swaps are a way to exchange on-chain bitcoin (layer 1) for off-chain bitcoin (lightning) without having to manage lightning channels. To keep it simple: Less setup but higher fees.
Ok but when muun decide to swap from lightning to onchain?
In the meantime is a self custodial service, right?
When you receive a lightning payment.
And yes it is self-custodial.
So each lightning transaction require an onchain swap , it's a nonsense.
Yes but this only affects you when you send a lightning payment because you pay higher fees. When you receive a lightning payment, fees are not passed on to you. I think they figure it out by bulking transactions or delegating to a 3rd party, not sure I’d have to check.
Muun has the benefit of enabling you to use lightning through a self-custodial wallet without having to setup and manage your own lightning node. So in a way you pay in fees instead of having to spend time managing a lightning node and maintaining channels.
If the wallet is not custodial it means you own the keys, so even when you receive lightning payment the swap is mandatory, i searched on their documentation but i didn't find exactly how it works
Yes, Muun is self-custodial. All your funds are always stored on-chain layer 1. As soon as you receive a lightning payment, the funds are credited to you on-chain through a submarine swap. Not sure how they do it when you receive a lightning payment, but your funds are never stored on layer 2. That would be custodial because it would use their node.