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yort
npub156n…3y3s
2023-06-24 00:37:38

yort on Nostr: okay, so i spent awhile trying to wrap my head around lightning liquidity, and i need ...

okay, so i spent awhile trying to wrap my head around lightning liquidity, and i need someone to check if i’m correct here:

if i wanted to purchase ~$100 p/week in non-KYC BTC over the lightning network (using Robosats), and then maybe when the balance hits like ~$1500 i’d probably want to move these funds on-chain, mix them, then send to cold storage

now, to do this i think i need to establish a channel with a well connected node and that channel would need about $1500 of inbound liquidity (and i’d probably want to keep maybe $500 in outbound liquidity too, just in case i wanted to spend on lightning more generally)

then, as i buy non-KYC BTC i’ll have that liquidity move from inbound to outbound, to the point where after 15-weeks i’ll have no inbound and entirely outbound liquidity in this lightning channel

what then? i would want to rebalance this channel, so i’d have to use an option like “loop” or “boltz”, where i would send all my outbound liquidity back over the channel, this would switch my $1500 of outbound liquidity to $1500 of inbound liquidity, right?

and then, with these “loop” and “boltz” services they would then send me the equivalent of $1500 on chain BTC to compensate me for moving all my outbound liquidity over (taking some 1% fee or whatever in the process)

then i just rinse and repeat the process?

seems like when they add “splicing” (resizing channels) it would be a bit simpler

i.e. when all the inbound becomes outbound then i can just create a movement for all the outbound to move on chain, and at the same time i can throw some more liquidity into the outbound to refresh it
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