Since both Bitcoin and the Lightning Network are open systems, anyone can become a swap provider between onchain sats and LN sats.
Eventually, this means crazy strong competition, until swapping becomes somewhat of a commodity service and the price becomes pretty close to the cost of maintaining the swapping service. How low do you think this will be?
0.1%-0.5%41.2%
0.01%-0.1%41.2%
0.001%-0.01%11.8%
<0.001%5.9%
17 votes \ poll ended
Onchain fees will determine that
Correct answer. Speculation is the enemy of true understanding.
I hope ultimately it will be a purely p2p market where coincidence of wants happen at a sufficient scale to make it seamless. Nostr can help in that. If so, ultimately the main part of the fee would be routing and on-chain fees, since there are no middlemen anymore.
But I don't think fee will sustainably go anywhere below 0.01%. That's already quite cheap imo.
Reminds me of swap service: https://github.com/supertestnet/swap-service
No one uses it but it's available. Anyone can run a swap server and charge for swaps.
I read that the Bisq project actually has on its roadmap the development of P2P LN<>Onchain swap market. If the UX is nailed, and perhaps there are even programmatic APIs so that other apps can integrate, it would be awesome.
Yep. I don't know where they're at with this, it's been a long time since they announced it. But I think they need to rework the whole thing first.
In the meantime Peach already added this feature.
That's just awesome that Peach has that.