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Author Topic: Earning Interest On Lightning Funds  (Read 188 times)
🏰 TradeFortress 🏰 (OP)
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May 10, 2019, 02:26:15 PM
 #1

Looks like you can currently make about 1% APR from Lightning routing fees.

https://blog.bitmex.com/the-lightning-network-part-2-routing-fee-economics/

The good thing about this is there is no counterparty risk; the main risk is from software bugs and errors. Of course, the main downside is that 1% APR is an absolute pittance, especially when you consider all the effort that is involved.

Would you put your funds on Lightning?
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May 11, 2019, 08:55:19 PM
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The risk is you will be forced to close your channel before you earn enough in routing fees to cover the multiple TX fees required to both open and close the channel.

The 1% "interest"/return will depend on how widespread LN use becomes and how many other people are running LN nodes to route payments.

I would not trust any money I am personally accountable for on LN until better solutions for backups for open channels are created.
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