Generating yield on Bitcoin’s Lightning Network is fiendishly complex, but the data analytics firm Amboss says its new Lightning Network Rate simplifies the process by providing key insights into yield opportunities on the network.
Service providers on the network will commit funds, open payment channels and temporarily lease excess liquidity to users for a fee, thereby generating yield on their committed funds. “Liner is a way to generate yield without giving up custody,” said Jesse Shrader, CEO and co-founder of Amboss in an interview with CoinDesk. “People gave their bitcoin to Celsius and gave it to BlockFi and now have nothing to show for it. We're promising yields on their bitcoin. Folks made the mistake of trusting another platform to hold that for them, but that's not necessary with Lightning.
in 2020, almost two years before Amboss. Lightning Pool aggregates supply and demand of liquidity, allowing buyers to submit bids for that liquidity via a sealed-bid auction, while also generating a “current lease rate” for capital similar to Liner.Reckless: The Story Of Cryptocurrency Interest Rates“We operate a liquidity marketplace. If you want to buy a channel from anybody that has an offer listed, you can go and do that and compare the prices,” said Shrader.
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