utxostack on Nostr: Opening a channel on the Lightning Network typically requires an upfront cost, which ...
Opening a channel on the Lightning Network typically requires an upfront cost, which creates a financial barrier for new users.
UTXO Stack addresses this by introducing a "Zero-Cost Channel Opening" (ZCCO) mechanism powered by smart contracts. Under this model, the Decentralized Liquidity Staking Pool (DLSP) covers the initial channel setup costs on behalf of users.
If the user subsequently receives sufficient inbound payments, they can maintain the channel and repay the fees over time. However, if the user fails to receive enough inbound payments within a specified period (e.g., three months), the channel will be closed, and any remaining funds will be refunded to the DLSP.
#UTXOStack #Bitcoin #LightningNetwork #stablecoin
UTXO Stack addresses this by introducing a "Zero-Cost Channel Opening" (ZCCO) mechanism powered by smart contracts. Under this model, the Decentralized Liquidity Staking Pool (DLSP) covers the initial channel setup costs on behalf of users.
If the user subsequently receives sufficient inbound payments, they can maintain the channel and repay the fees over time. However, if the user fails to receive enough inbound payments within a specified period (e.g., three months), the channel will be closed, and any remaining funds will be refunded to the DLSP.
#UTXOStack #Bitcoin #LightningNetwork #stablecoin