137 sats \ 1 reply \ @zapomatic 17 Dec 2023 \ on: Liquid is not a scaling solution bitcoin
I was just learning about Liquid as a way of rebalancing lighting and having a hard time squaring the cost/benefit. If you want to move liquidity out by swapping via boltz to liquid, there's a network fee of 428 sats + 0.25% (+ whatever routing fee or channel opening fee gets you to the Boltz channel). Then you have L-BTC that you hope to swap back to on-chain bitcoin later, but will have to pay whatever the BTC on-chain network fee is + 0.5% for the Boltz fee... seems like it's a paid hedge to assume that BTC on-chain will be cheaper later, but you also get stuck with your BTC as L-BTC so you can't just use it to open a new channel until the fees go down...
Maybe I'm missing something but it seems like a lot of extra work and side-storage wonkiness that could end up being more costly ultimately as a way of creating inbound liquidity...
Sideswap charges 0.1% for L-BTC to BTC swaps.
And btw Liquid has some privacy features that the OP didn't mention (admittedly they're not that relevant to the issue of scaling). It blinds the amounts sent, but you can still unblind them using your private key.
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