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Is adding liquidity to the lightning network akin to being a gold miner? Ie you’re adding critical infrastructure that improves the underlieing asset and creating a yield? Or perhaps it’s more like a commercial bank, adding liquidity to the base layer money? I think I prefer the 2nd analogy nostr:nevent1qqsqrjn90dkm92c6ndeq6zxxp6sprp4pj00ncj74607xwvn87tz9dhqprfmhxue69uhhyetvv9ujuumwdae8gtnnda3kjctv9ukqpkhjut

10% is a pipe dream, sure you will see anecdata here or there but you cannot predictably deploy large amounts of capital into LN and expect meaningful returns, specially given the return on risk for putting your bitcoin in a hot wallet that is accessible over the internet

What would be your estimation %? I think you can only get up significantly if you are selling liquidity. But this will be more a one term thing and we have quote some players who are doing this already.

yeah you can get decent returns when you sell liquidity to loop or on marketplaces etc, but thats not really a repeatable process unless you have endless bitcoin amboss is throwing around some numbers between 1-4% but thats all based on anecdata and thats the point, it becomes better with large infrastructure - nostr:nprofile1qyt8wumn8ghj7etyv4hzumn0wd68ytnvv9hxgtcpvemhxue69uhkv6tvw3jhytnwdaehgu3wwa5kuef0dec82c33denh2mtvw9kh2uek0p4hymtkwejk2drevvmhxamg895rgattxam8quf5v3j8gdmpxf48gantvvery7fsv9ehyum9xdc8v0mzwfhkzerrv9ehg0t5wf6k2qpqngumlqmus6xkrmvvee4yc7swh9h4uk7vpq4ddt7a2jtvkc22y0as8a7mmt is sharing his numbers somewhat frequently so thats a good start to dig into this here's an interesting thread nevent1qqsp8ca2q3axpanssgyh28nl6xvnfw4j8h2fctg5un8wfd4h8xpxvqs4q0nu8

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

The more info the better. In particular real world use cases People actually trying Will share what I learn as well Thanks for the reply

It’s certainly worth investigating 10 BTC without losing custody, if that’s possible, then that’s a big deal

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

Fwiw my node earns yields well above 10% consistently for over a year now. It took a few years of building up the node, learning, trial and error, to get to that point, but it is certainly possible. Even for a ‘small’ plebnode with few BTC capacity

Been thinking the same thing since talking with nostr:npub1q8gth72n0mcl6rwls905rsvfvuu0dgaq7cq028rc9d7c3ygnp4xq84awvk

hat of to you sir! that is a very respectable achievement

Nice data point! Thanks for sharing And say it was consistently 10%, what are the reasons that yield might compress? Competition. Entropy. Malfunction. Etc?

Biggest driver of earnings is routing volume. It’s the one factor out of the hands of the noderunner. But volumes overall on the network have been very steadily increasing for a while now. In the past there would be shorter spurts of heavier volumes; what we are seeing now is very consistent and sustained. Competition— I don’t think is much of an issue at this point. There are very few ‘professional’ lightning modes outside of the large commercial operators. There’s currently more demand for liquidity than is being met imo.

Hey perv

Hey perv

Perv

Perv

It’s a really interesting investment opportunity I think Clear need Clear demand Earn sats (no Bitcoin hurdle rate) Self-custody possible Lots to like