Da fuq is this shit??? 🤨
Somebody break it down Barney style for me.
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That’s not bad. It’s 1% + Network fees.
Looks like an inbound liquidity service plan
Lightning works by having a “channel” balance between two peers who share a locked up UTXO
But that means to receive, your peer needs to have some Bitcoin on their side of the channel
This sounds like something I should definitely set up opportunistically as soon as I notice fees are low. Will definitely set up 10 million worth of liquidity when it's cheap enough to do so.
Cash App offers free liquidity still if you do it smart enough and are fine with using a centralized exchange
Every send you make out of your channel also unlocks the same amount on the other side to receive in the future
I thought that Strike was doing that as well because when I send 100k-200k to my Phoenix wallet I was only paying like 9 sats each time, but when I sent a bigger payment this morning I had to pay a miner fee to receive it to Phoenix. Cost me about 2.5%.
Here’s what you do
- send a big amount from an exchange into a new channel
- over lightning, send half back to the exchange
- send that amount wherever you want, but ideally back to your wallet by opening a second channel or splicing in on Phoenix
Boom, inbound liquidity
🤔
I think this 1% service fee for requesting liquidity though Phoenix will save me money in the long run.
The entire sats flow is always going to be one way.
Strike --> Phoenix in 100k-500k increments, and then splicing out a few million to cold storage every so often.
What I want to avoid is paying a miner fee on the Strike to Phoenix part of it every time. Especially if fees go higher in the future.
Good plan.
There’s a great video on how lightning works, I can send it later when I have a computer to find the link
I'm still a tard with lightning. I get the basic concept, but I'm confused as to why I have to provide liquidity for a custodial service to send me a payment to my self custody wallet.
Your self custody wallet can only receive up to the amount of the UTXO you have locked with a peer.
If you have a 5M UTXO locked on the lightning network, you cannot receive more than 5M sats without making a transaction on L1
Inbound liquidity is being sold to you by someone who is willing to lock their Bitcoin on lightning with you so you can receive payment beyond your channels maximum capacity
It’s the self custody aspect of your wallet.🎄
Your chips are all on one side so you can't receive sats.
