In the post "How To Optimize Lightning Node Centrality" I've discussed how node operator could make a decision "What is the best next node to open new channel?" using so called betweenness-centrality metric of Lightning Network node graph. I also reproduced some results of preprint “Short Paper: A Centrality Analysis of the Lightning Network” for the 26th conference Financial Cryptography and Data Security 2022.
Here I will try to briefly extend previous post and answer on the question "How to maximize LN fees while preserving as high payment flow as possible?".
On this plot I've put betweenness-centrality metric as a function and Proportional fee as a parameter. All points were calculated while applying these limitations:
- each payment size has its own pre-generated graph (with payment fees as weights),
- fees are equal for all channels of the node and change simultaneously.
Here what I have as for recommendation from plotted results for a node with approximately 130 channels. Lines for larger payments have a plateau between 2 - 8 PPM which means that payment flow shouldn't get any penalty when proportional fee changes from 2 to 5 PPM. For smaller payments we can't maximize fee rate while not penalizing betweenness-centrality. However, they aren't inelastic in the same degree as larger payments.
Thanks for attention and your sats in case you upvote this post.