lightning-dev

Liquidity Ads and griefing subtleties

Liquidity Ads and griefing subtleties

Original Postby Matt Morehouse

Posted on: December 7, 2023 21:17 UTC

The concept of liquidity advertisements is proposed to undergo a modification where the liquidity is temporarily provided for a one-directional transfer rather than leasing the channel in its entirety.

Under this new model, the seller offers an initial inbound liquidity that can be used by the buyer until the leased amount is reached. After this point, any remaining balance on the seller's side is freed from obligations and can be reclaimed without repercussions.

This innovative approach implies that sellers are not committing their channel's capacity indefinitely but are instead allowing buyers to utilize a specified amount of liquidity for their transactions. Once the agreed amount of liquidity has been utilized by the buyer, the seller is at liberty to either close the channel or maintain it open if there is sufficient two-way traffic, thus potentially earning additional fees.

A key consideration emerging from this proposition revolves around whether operators would prefer to engage in transactions based on a specific amount of inbound liquidity (measured in satoshis) or opt for a conventional open channel arrangement that guarantees an initial inbound liquidity for a set duration (denoted in days). The author of the idea appears to be leaning towards the viability of this liquidity leasing model and expresses intent to delve deeper into its mechanics should it align with their strategic direction.