What are people's thoughts on how much liquidity one currently needs to set up a truly profitable #Lightning node from scratch? (without sugarcoating it)
What yield can one expect realistically?
Any resources would be highly appreciated!
@Michael Levin
@Moritz @stark
Login to reply
Replies (11)
Followed! I wish to know too!
you would need a high 2 figure million sats liquidity
and it should be in clearnet
you can expect 2% to 3% yield per year
I think if you are intending to run a public lightning node and hope to earn a consistent yield you would need to be able to devote at least 100m sats outbound liquidity and attract (or purchase) a similar amount of inbound liquidity. You could would be to have a minimum of 20-25 larger sized channels of 5-20m sats each.
LNDg for managing
thunderhub for payments
RTL for opening and closing channels
+1 for LNDg. That is the single piece of software I could never run my node without!! LNDg and @ZEUS is all I need ⚡️
High 2-figure or low 3-figure is not so different really. It’s all subjective and not to say that you can’t be profitable with less liquidity. But in general terms, the more liquidity you have available and more well-connected channels your node has the better you will be able to move sats where they need to be and route more payments.
Thanks for the responses so far!
Any thoughts on how Lightning Terminal stacks up vs ThunderHub and RTL?
View quoted note →
The best routing nodes are profitable but there are also plenty that do it to help the network grow.
It is really hard to say something about liquidity and profitability because it very much depends on your focus as a node. For instance: If you become a default LSP selling channels in LSP, you'll have a constant demand of people buying channels from you. But there are also other strategies.
Interesting. Thank you! Curious what some of the strategies are that you have found to be the simplest for building a profitable routing note from
scratch!