With the public release of LND 0.18 node runners gained extra flexibility in policy settings. Let’s discuss today’s best practices and tools for automated fee management.
0 sats \ 5 replies \ @bartoli 25 Jun
'''The way to properly use it is to set relatively high outbound fee rates for source channels, and give equally high discounts to the most stubborn sinks. A fee management algorithm should be able to set such inbound discounts automatically when the liquidity dips below a pre-set threshold. Of course, currently this will only work if the mission control is done by another LND 0.18 node.'''
Isn't it the opposite? The fee taken for a route is the outbound channels feerate.
A channel is not a source because it has low fees, but because it is the inbound channel for routes that go throuh a cheap outbound channel, so it ends up with lots of local balance. Increasing it's fees would then reduce even more the routes it would do the other way, so it would stay a source. And the discount on the sinks would make it even more a sink
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0 sats \ 4 replies \ @MiddleWay OP 25 Jun
No. Discount makes it cheaper for a sink to route to any other channel.
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0 sats \ 3 replies \ @bartoli 25 Jun
I am not saying this is not the case. I'm saying that in this paragraph, to my understanding, the author should advise the opposite : low outbound fee on the source channel, not a high one . It's the sink that should have a high inbound fee.
For the last part, i might have written too fast, indeed, the inbound discount on the sink channels is good
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0 sats \ 2 replies \ @MiddleWay OP 25 Jun
Low outbond fees will invite any channel to take that liquidity. So other sources will take it. If you want the high inbound discounts on sinks to have effect you need matching high outbound fees on sources.
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0 sats \ 1 reply \ @bartoli 25 Jun
A source channel is a channel that has mot liquidity local, because there are not enough routes that find it interesting as an outbound channel with its current outbound fee.
I agree that to be able to have a big discount on the sink's inbound feerate you need big enough fees on the outbound channels routes will use (i already thought about it too, see #537007).
But if you increase the outbound fee of a channel that is a source (that already has not enough routes as outbound channel with it's current outbound fee) to 'increase' the discount, that discount is cancelled by the increase of the outbound fee on the source channel. So routes that come in from the sink, and out by the source channels are still as uneconomical as before.
So the increased discount on the sink only brings something for other outbound channels that actually route with their higher outbound fee.
For the source channel who has had an outbound fee increase, it is actually not encouraging more transaction that would rebalance the sink channel, while reducing even more the few transactions that used the source channel as output, keeping it even more stuck as a source
So for me, the only channels where you could consider increasing the outbound fee to increase the impact of the discount are actually all the channels that are NOT sources
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0 sats \ 0 replies \ @MiddleWay OP 25 Jun
Agree
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0 sats \ 1 reply \ @SatsMate 25 Jun
As an end user, it would be neat to have a couple different options to select when leveraging nodes. Kind of like node shopping (for those that don't want to run their own node/don't have the technical aptitude).
This way one could optimize fees, liquidity - in a transparent manner.
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0 sats \ 0 replies \ @MiddleWay OP 25 Jun
Sorry, don't understand. This tool is for node runners. Do you want to connect a wallet like Blixt to some node with the best fees? You can't see the liquidity until you try to make payments, and then the fees can change. The only way to have full control is to run your own node.
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0 sats \ 1 reply \ @16d86e9daa 24 Jun
clear and detailed reports for stakeholders to review fee structures, transactions, and compliance should be Generated
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42 sats \ 0 replies \ @MiddleWay OP 24 Jun
What stakeholders? What compliance? LNDg does the detailed accounting already. PeerSwap Web UI is an interface to peerswapd, lnd/lightningd and elementsd to run the node efficiently.
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