the tl;dr is that any wallet that offers both lightning and onchain payment option will get arbitraged by users who needs to swap out their funds from lightning to onchain
a solution for that is to have dynamic fee that compensate for the imbalance created by users that are doing too much loop out
the tl;dr is that any wallet that offers both lightning and onchain payment option will get arbitraged by users who needs to swap out their funds from lightning to onchain
a solution for that is to have dynamic fee that compensate for the imbalance created by users that are doing too much loop out
full paper is here: https://github.com/GaloyMoney/liquidity-fees-paper
happy to answer more questions on it