0 sats \ 6 replies \ @random_ 16 Sep \ on: Who can give me an ELI5 on Inbound liquidity and it's increase / decrease?! lightning
There is no credit in Bitcoin land.
To send money, you must have outbound. i.e. you have put money into a channel with someone else.
To receive money, you must have inbound. i.e. someone has put money into a channel with you.
Simple as.
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0 sats \ 5 replies \ @Fabs OP 16 Sep
So if I send 100k to SN, I have new inbound liquidity?
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0 sats \ 4 replies \ @random_ 16 Sep
Yes.
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0 sats \ 3 replies \ @Fabs OP 16 Sep
And how is the amount of liquidity calculated?
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100 sats \ 2 replies \ @Radentor 16 Sep
  • Inbound liq. = channel size - outbound liq - channel reserve - commit fee
  • Outbond liq. = channel size - inbound liq - channel reserve - commit fee
  • Channel size = UTXO amount locked in the channel opening tx
  • Commit fee = First-to-fill sats in LN channel that acts as a emergency funds to get your part of funds confirmed on-chain. Usually equal as the Onchain fee
  • Channel reserve = Mutually-agreed fidelity bond that deters channel counterparty from publishing fraudulent close. Usually 1% of channel size
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0 sats \ 1 reply \ @Fabs OP 16 Sep
Now I know how it must feel when I tell people a bit about how Bitcoin works... 🤭
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0 sats \ 0 replies \ @Radentor 16 Sep
LN channel is literally just like an hourglass once you know it enough
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