i’m Sacro and i am pretty new to Sovryn. What you are creating here is incredible!
While i do not have as much in-depth knowledge as many of you, i’d like to give a few thoughts
on ln-pool integration because I recently played around with it on my lightning node.
The concept of hodling btc in lightning channels and earn yield on it is really cool and definitely worth exploring for Sovryn.
As the lightning network is increasing it’s reach at an astounding rate, using LN via Sovryn to earn yield could absolutely
BOOST Sovryn’s adoption and would be a unique selling point in comparison with other Defi programs.
Just imagine the advertising: Use sovryn to earn yield from lightning network transactions/providing liquidity on LN while hodling your keys! A lot of bitcoiners would love this.
There’s 2 options to generate yield via LN: Selling Liquidity via channel-opening (pool) and earning fees on transactions that go through the opened channels.
But selling channels via pool is very difficult.
The only nodes that can do it need to be very well connected and have a lot of liquidity. There is / will be competition.
Most LN transactions happen between a few BIG nodes. It’s not as decentralized yet as it should be (Rene Pickhardt with his Pickhardt payments could be great progress and very interesting for smaller nodes).
Nobody wants to pay for a channel that has limited reach or low liquidity.
Buyers are companies/exchanges that need a lot of inbound liquidity to receive btc.
They do not want a transaction to fail because their rented channels cannot be reached by their customers.
In order to be succesful Sovryn would need to make sure that their nodes are very well connected within the lightning network.
It would need to be listed on the Bos-Score [Bos Score - Lightning Network Node Ranking]
Why could Sovryn play a big role here: We are a network of people. Let Sovryns connect their LN-nodes to each other and increase the reach of each node.
Let Sovryn’s who do not run a ln-node provide liquidity for these nodes via Sovryn. Let Sovryn sell the channels/Liquidity of SOV- lightning nodes via Pool.
Where a single small ln node would typically fail, a sovryn ln node thats connected with hundreds of other sovryn ln nodes and thats branded like that could succeed on pool.
I have some technical background but am not a dev by any means. I imagine that this would be really difficult to build if not impossible and takes a lot of time. Right now this would not be worth it, but if LN keeps scaling, this could be a big opportunity in the years to come.
How to bring rbtc <=> lightning btc
How to bring SOV-Lightning nodes / channels together?
How to provide these nodes with liquidity via Sovryn in a trustless/trut minimized way?
How to interact with pool?