[Lightning-dev] Proposal: Automated Inbound Liquidity With Invoices

[ecurrencyhodler]

Hi ZmnSCPxj!

Submarine swaps are a great current solution, but we still have to wait for
confirmations.

>Further, while it involves fees, it does give you control over what nodes
you make channels with, and would be a good investment in your future
accessibility over the Lightning Network.

What disadvantages do you see over this proposal and say something like
autopilot?  Or do you just prefer manual channel management overall?

On Tue, Aug 13, 2019 at 6:27 PM ZmnSCPxj <ZmnSCPxj at protonmail.com> wrote:

> Good morning Ecurrencyhodler,
>
> A current and practical way to set up incoming liquidity would be to take
> some onchain funds, create a channel to a high-uptime node on the network
> (just run an autopilot), then use a submarine swap (i.e. pay offchain funds
> to buy onchain funds).
> Then you can reuse the same onchain funds over and over to make more
> liquidity until the submarine swap provider runs out of onchain funds or
> you have sufficient liquidity or your money has been drained by the fees
> involved.
>
> While this requires onchain funds, presumably as a new business or
> merchant you will have capital in some form before starting your business.
> The most sensible way to store and transport financial capital is, of
> course, Bitcoin, thus you already have what is needed to start this, you
> simply have to do it before you perform other operations.
> Further, while it involves fees, it does give you control over what nodes
> you make channels with, and would be a good investment in your future
> accessibility over the Lightning Network.
>
> Regards,
> ZmnSCPxj
>
>
> Sent with ProtonMail Secure Email.
>
> ‐‐‐‐‐‐‐ Original Message ‐‐‐‐‐‐‐
> On Monday, August 12, 2019 11:42 AM, Ecurrencyhodler Blockchains <
> ecurrencyhodler at gmail.com> wrote:
>
> > Hi. I'd like to propose a way for instant inbound liquidity to be
> automated via invoices and would appreciate your feedback.  It's similar to
> Thor's instant channel but this proposal would only be valuable if it
> becomes a standard across all lightning implementations and wallets.  It
> won't work if it's limited to just one Lightning wallet.
> >
> > Proposal: Automated Inbound Liquidity With Invoices
> >
> > For Who: Full Lightning Network nodes
> >
> > Problem: Waiting for inbound liquidity as channel establishes when you
> first come online and want to receive a LN payment.
> >
> > Solution: Embedding the node uri of the invoice creator, along with
> amount to be routed.
> >
> > Scenario:
> >
> > 1.  Bob wants to send me 100,000 sats.
> > 2.  My node just came online and has 0 inbound liquidity.
> > 3.  I create an invoice for 100,000 sats.  My LN node recognizes I have
> 0 inbound liquidity so my wallet also embeds my URI in the invoice.
> > 4.  Bob’s wallet sees an invoice + uri.  Maybe even tries to route.
> When it doesn’t see anything, it auto opens a channel + pushes 100,000 sat
> payment.
> > 5.  I now own and can spend 100,000 sats instantly.
> >
> > Considerations:
> >
> > -   This auto establishing of channels and pushing payments isn’t for
> all LN nodes.  Just routing nodes.
> > -   Bob doesn’t need to be the one to establish the channel.  He can
> push the information down the line until a node dedicated to routing is
> found.  The routing node can then be the one to establish the channel with
> me.
> > -   Certain specifics need to be flushed out such as the size of Bob’s
> channel.  Right now I think Bob can manually set the size of the channels
> to be established on his end.  Should be smaller channels at first.  If the
> person gets paid again, just establish another channel towards the same
> node if there isn't enough capacity.
> > -   Routing nodes who provide this service can charge a premium.
> > -   Bob, as a liquidity provider, won't cheat against himself so I can
> make LN payments instantly.
> > -   The beauty behind this proposal is that I can receive a payment
> instantly, I can send payments instantly, and that it hides everything from
> me as an end user.
> > -   Can possibly be extended to neutrino LN wallets if they are public.
>
>
>
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://lists.linuxfoundation.org/pipermail/lightning-dev/attachments/20190813/390ffc4c/attachment.html>