What is Nostr?
dr.orlovsky / Dr Maxim Orlovsky
npub13mh…mnym
2023-05-09 22:32:16

dr.orlovsky on Nostr: Lightning was supposed to solve on-chain congestion problem, not join it! Routing ...

Lightning was supposed to solve on-chain congestion problem, not join it!

Routing nodes now have to reserve up to thousands of $ for fees: this is the way LN is designed today (example of how this might happen can be found in https://twitter.com/ln_capital/status/1656003985948516352?s=46&t=ipsBmXsnm96namW0IOz1Ig). It doesn’t mean this money are lost, but they have to be subtracted from the channel balance, increasing existing LN liquidity problems.

One of the strategies the nodes may follow will be to stop routing until good fees are back - and keep commitment transactions originating from the times when fees were low.

Current software doesn’t support this, but the future versions may do.

This will mean that with high onchain fees LN will degrade in performance and liquidity too.
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