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27 sats \ 2 replies \ @SwapMarket 5h \ on: Poorman's Coinjoin Using Non-Custodial Lightning Swaps (No Node Required) bitcoin
There is a limit how much LN sats can be paid from MiddleWay to Boltz, before the need to close previous channels and open new ones. The new channels will be opened with 'tainted' UTXOs, and if they open directly to Boltz, Boltz will soon get those UTXOs when the new channels are closed. So this scheme only works for a few millions of sats, before the users will start receiving tainted coins.
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One can better use BTC - Liquid BTC swaps for this purpose. Cheaper and no channels need to be closed and reopened.
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