Replying to Avatar maven leo

Okay, so this is what I figured out from ChatGPT and Deep Seek

Liquidity is literally the “availability” of funds or UTXOs in the channel between me and my peer. My inbound liquidity is what my channel peer has committed in UTXOs and my outbound liquidity is what I have committed in UTXOs

As I receive funds and as UTXOs are spent, my inbound liquidity goes down but my outbound liquidity goes up

Correct?

#asknostr

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gandlaf21 9mo ago

almost correct. the utxos are not spent.

the state of the utxo is simply re-negotiated (offchain)

the rest is correct!

Thee UTXO is the channel. The (offchain) transaction spending this UTXO is the current state of liquidity

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