Nostr Web Client

Going to do a deep dive on capital accrual on the lightning network

It seems that adding liquidity, not losing custody, and providing infrastructure, with your Bitcoin, is a incentive-aligned investment for a Bitcoin maxi

Most of the time I am put off by:

- counter party risk

- liquidity risk

- liquidation risk

- the hurdle rate of Bitcoin

- tax risk

But thus far, and I could be wrong, all due diligence is positive

I wonder, the yield of say 10% that is available should you optimise it well

Why won’t that be compressed? As more capital becomes available and sophisticated, I assume it’s less profitable to run a node, channel, and provide liquidity?

Really does seem like a clean play at to create yield on your Bitcoin

So Tachi 1mo ago 💬 1

The yields are higher the more channel you have and the more liquidity. Small nodes barely make a profit.

Lightning is overlooked though, competition is NOT fierce yet and you can run a big node for 10BTC

Lightning is a very exciting network for maxis and degens alike, if covenant get supported this network will be very interesting for all things DeFi too

Reply to this note

Please Login to reply.

Discussion

Jake Woodhouse 1mo ago 💬 1

It’s certainly worth investigating

10 BTC without losing custody, if that’s possible, then that’s a big deal

So Tachi 1mo ago

I agree it’s the best yields you can get on your bitcoin. You should be careful running your hot wallet but if you follow the good practices you’ll be fine. All big players are in there running node with hundreds of BTC capacity