ZmnSCPxj [ARCHIVE] on Nostr: 📅 Original date posted:2021-09-01 📝 Original message: Good morning Matt and ...
📅 Original date posted:2021-09-01
📝 Original message:
Good morning Matt and all,
> Please be careful accepting the faulty premise that the proposed algorithm is “optimal”. It is optimal under a specific heuristic used to approximate what the user wants. In reality, there are a ton of different things to balance, from CLTV to feed to estimated failure probability calculated from node online percentages at-open liquidity, and even fees.
It may be possible to translate all these "things to balance" to a single unit, the millisatoshi.
* CLTV-delta
- The total CLTV-delta time is the worst-case amount of time that your outgoing payment will be stalled.
- We can compute the expected nominal rate of return if the funds were instead put in a random Bitcoin-denominated investment, getting back a conversion ratio from time units to percentage of your funds.
This is what C-Lightning already does via the `riskfactor` parameter.
* Node failure probablity
- Can be multiplied with channel failure probability (the one based on the channel capacity).
- As I pointed out elsewhere, we can ask the user "up to how much are you willing to pay in fees?", and that amount is the cost of failure (because economics; see my other mail); the failure probability times the cost of failure is the effective cost of this path.
* Fees
- Are already denominated in millisatoshi.
One unit to rule them all....
Regards,
ZmnSCPxj
📝 Original message:
Good morning Matt and all,
> Please be careful accepting the faulty premise that the proposed algorithm is “optimal”. It is optimal under a specific heuristic used to approximate what the user wants. In reality, there are a ton of different things to balance, from CLTV to feed to estimated failure probability calculated from node online percentages at-open liquidity, and even fees.
It may be possible to translate all these "things to balance" to a single unit, the millisatoshi.
* CLTV-delta
- The total CLTV-delta time is the worst-case amount of time that your outgoing payment will be stalled.
- We can compute the expected nominal rate of return if the funds were instead put in a random Bitcoin-denominated investment, getting back a conversion ratio from time units to percentage of your funds.
This is what C-Lightning already does via the `riskfactor` parameter.
* Node failure probablity
- Can be multiplied with channel failure probability (the one based on the channel capacity).
- As I pointed out elsewhere, we can ask the user "up to how much are you willing to pay in fees?", and that amount is the cost of failure (because economics; see my other mail); the failure probability times the cost of failure is the effective cost of this path.
* Fees
- Are already denominated in millisatoshi.
One unit to rule them all....
Regards,
ZmnSCPxj