lnproxy on Nostr: One of the downsides of having only unannounced channels is that routing through ...

One of the downsides of having only unannounced channels is that routing through public channels give you a lot of plausible deniability when making or receiving payments. Your counter parties can't know if it's you or just someone routing through you.

Since lnproxy works just as well with private channels (the wrapped invoice will just have routing hints), running an lnproxy relay restores this plausible deniability (as well as giving you some potential routing revenue).

Even nodes not running relays benefit, since your counter party now has to assume that it's possible you're running an lnproxy relay they don't know about.