What is Nostr?
matt / Matt Corallo
npub185h…wrdp
2025-02-20 21:39:18
in reply to nevent1q…vgga

matt on Nostr: Indeed, that’s a bit better, though it’s still not a lot less than LN. If a user ...

Indeed, that’s a bit better, though it’s still not a lot less than LN. If a user receives X sats, the LSP has to allocate at minimum X sats for the Ark transaction (and needs to complete that Ark update pretty quick, maybe in under a second or so, but that doesn’t require liquidity). Now if the user sends X/2 sats, the LSP is providing X/2 sats in liquidity (same as LN). Maybe it’s better because it’s a bit easier to under-allocate up front, but I’m not sure that that was a major part of the total lightning LSP float to begin with.
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