What is Nostr?
NoeBoties_Fool
npub1956…ng3s
2024-11-22 10:03:44
in reply to nevent1q…ec36

NoeBoties_Fool on Nostr: If you are selling a lightning channel (selling a lease for a set time duration) your ...

If you are selling a lightning channel (selling a lease for a set time duration) your liquidity would be stored in that channel (controlled by your lightning node) on the lightning network. Your lightning node is usually operating through your BTC node. All of these are your nodes and your wallets. So yes, sort of. It's indirectly on chain. Its just on layer two, the lightning network, fully under your control. You are only subject to your honor in keeping the channel open for the agreed upon duration for the agreed upon fees. If you fail, your reputation and ability to do such business on Amboss is all that's at stake. This assumes you can keep your lightning node up and running and have the knowledge/skills to recover your funds in case of a node failure.

In short, you have control but the risk is your LN node failing and your loss of funds due to failing to have proper backups/redundancies in case your node goes down. With proper operation knowledge and backup/restoration plans the risk is low. But there is risk.

That said, if you fire up a LN with say 1BTC and sell one channel for .5btc, this leaves you with .5btc to open other channels that will make your leased channel valuable to the person leasing it. For instance, if the only channel you have is that one .5btc channel then it is useless to the person you leased it to as no one can route a payment to them through it. They'll likely do their own due diligence and not lease from you in that case. However if they do, that's on them. But, you would only get the leasing fee and you wouldn't make any extra money routing payments through that channel to them.

If you didn't know this already, you probably don't have a lightning node. Perhaps a wallet but not a node. If that's the case, I'd suggest you begin by looking into node operation and see if the time and effort is worth it to you. If you are familiar with lightning nodes enough to know it's not worth the time and effort for you, then this isn't for you either.

No judgment, just the facts from assumptions based on your question.
Author Public Key
npub1956zhstqunsq2x3yjh4cnt6hgrww06m2ekja5x5m0kqwg82flc5seeng3s