ZmnSCPxj on Nostr: A lot of Lightning liquidity troubles disappear once the Lightning economy becomes ...
A lot of Lightning liquidity troubles disappear once the Lightning economy becomes circular, but you cannot get there unless you demonstrate high payment reliability, which requires that Lightning fix its liquidity troubles some other way first. Fortunately forwardable peerswaps forces the Lightning economy to be circular by just trading 1 BTC (onchain) = 1 BTC (offchain). Once we become truly circular we will stop needing it, but any liquidity pressure can be relieved by forwardable peerswaps.
Published at
2023-05-04 20:10:03Event JSON
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"content": "A lot of Lightning liquidity troubles disappear once the Lightning economy becomes circular, but you cannot get there unless you demonstrate high payment reliability, which requires that Lightning fix its liquidity troubles some other way first. Fortunately forwardable peerswaps forces the Lightning economy to be circular by just trading 1 BTC (onchain) = 1 BTC (offchain). Once we become truly circular we will stop needing it, but any liquidity pressure can be relieved by forwardable peerswaps.",
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