pull down to refresh

My node on Amboss and 1ML:
In May 2018 I created my lightning network routing node, which is now known as c-otto.de, on the host ftp.halifax.rwth-aachen.de (a well known mirror for linux distributions and other stuff, also managed by me). Back then, I just played around a bit, but didn't really "run" my node. I configured LND's "autopilot" (the old version, obviously), which created a bunch of useless channels. I didn't configure fees. I didn't look after my node.
Some time before November 2018 I started experimenting with rebalancing, which resulted in rebalance-lnd (https://github.com/C-Otto/rebalance-lnd/).
In February 2021 I moved the node to my own server, changed the name to c-otto.de and started to look into things more. I added more liquidity, tried to figure out a fee policy, opened and closed channels, filed bugs, ...
As part of that effort, in May 2021 I started lnd-manageJ (https://github.com/C-Otto/lnd-manageJ), a Java server tool that I use to get useful statistics, send rebalance payments (using Pickhardt Payments), ...
For April 1st 2022 I temporarily changed my node's name to "zero fee routing | lnd". Fun times, for those who still remember "zero fee routing" (which moved to CLN at around the same time). I didn't set zero fees, though :)
Now, almost 7 years after the initial creation, the node is still running fine, and I see decent traffic. I plot my routing details using rrdtool (backed by lnd-manageJ and some ugly scripts), and I'd like to share some of these graphs with you. I censored the interesting data due to reasons. Sorry. I hope the graphs are still somewhat entertaining!
Forwarded transactions:
Forwarded amounts (in BTC):
The blue lines represent routed BTC with rebalance amounts (red) already deducted.
Fees:
The blue lines represent routing fees I earned with fees paid for rebalance transactions (red) already deducted.
It is a long run! How you stay motivated? Any insight to share? I see for example:
  1. Less than 80 channels.
You hit the sweet spot in this regards?
  1. Big channel with the usual players
The only profitable way to run a routing node right now is this? Big channels to big players and don't sell to normal noderunners?
reply
Motivation is a tricky beast. There have been times where I read every single log line as it flew by, trying to understand the details, optimizing stuff. There have been times (more recently) where I simply don't look at any information of the node, aside from "is it still running". Nowadays, I just do what feels right, without any plan. If my motivation drops too low, I'll close the node. Luckily, there's a lot of automation going on behind the scenes, so my motivation would need to drop quite a lot.
I stopped opening channels to new peers a while ago, mainly because I haven't figured out how to find good peers. I experimented quite a bit over the years, sometimes with success, but not in a satisfactory and organized manner. Due to the size/popularity of my node, I get lots of channels from (for me) new peers, and I just keep those that are worth it. I need to take good care of my sats, and having them sit idle in useless channels isn't worth it - which is why the number of channels might be rather low. The channels that remain, however, are good (or new).
If I take a closer look at the top channels while including bidirection traffic (i.e. incoming traffic also counts as "good" if it leaves through a channel where I charge fees), the top nodes for the past 60 days are, sorted by profitability with the best peer listed first:
  • Binance
  • fixedfloat.com
  • LOOP
  • LNBiG.com Edge 4
  • LNBiG.com Hub 1
  • LNBiG.com Hub 3
  • Strike
  • cyberdyne.sh
  • adam.masterofpearls.net
  • Net Neutrality
I guess you could say that larger nodes are better. Keep in mind, though, that not all large nodes are good peers. I've cut some ties, and I will cut more.
Regarding profitability: keep in mind that this involves quite a bit of risk (hot wallet, "beta" software). Furthermore, running a routing node takes quite a bit of skill. If this were an established industry, my salary would be more than what any reasonable node could earn - risk and other costs aside. It's a hobby. I'm fine with smaller nodes as peers, but ultimately, they tend to hog my sats more than larger nodes do.
reply
To add to this:
ACINQ, bfx-lnd0, bfx-lnd1, okx and kraken didn't make it to the top 10, even though I have/had channels with those peers, too. Size alone isn't enough, there needs to be demand, which Binance seems to have quite a lot of.
I'd say the best reason to run a node in the lightning network, taking into account the risk and all costs, is to actually use it. Businesses that depend on their node, or at least provide a decent benefit to their users by offering LN, don't need to care about the overhead. They earn money using some other means.
reply
The exchanges nodes are the first user case we have and they tend to centralize, only a few have all the traffic, maybe in the future, as you said we could see more real traffic from real business.
reply
Thanks for your detail response :) and thanks to develop software to use with our nodes.
reply
198 sats \ 0 replies \ @sime 23 Mar
TIL zero free routing = c-otto.de
reply
That's great to see so many transactions! Did you close off channels in the past few days? How do you choose channels to be closed? Or what happened?
reply
I closed a few channels with bfx-lnd0 with almost all of the liquidity on their side. Having those parallel channels doesn't serve any benefit for me, I still have plenty of inbound liquidity from bfx-lnd0. This way I could get a few sats (to be used elsewhere) while reducing the risk of force closes and other channel related costs at a time with very low on-chain fees.
I'm using the rating system implemented in lnd-manageJ, see https://github.com/C-Otto/lnd-manageJ/blob/main/rating.md for details. If a peer has a very low rating (ignoring the first 45 days of a new channel), I consider closing.
reply
I'm using the rating system implemented in lnd-manageJ, see https://github.com/C-Otto/lnd-manageJ/blob/main/rating.md for details. If a peer has a very low rating (ignoring the first 45 days of a new channel), I consider closing.
Great suggestion, thank you
reply
2022 2023 was on fire
reply
Yeah. I think a lot of this is due to private node runners establishing nodes, doing some rebalancing (at a loss). I'm not sure, though.
reply
22-23 was the 2nd wave of noobs getting into umbrels...
reply
Yes... and the mania of rebalance, plus some high fee environment.
reply
reply
77 sats \ 1 reply \ @bartoli 23 Mar
Thanks for sharing this! I thought of doing something similar for my node, but my numbers are far lower than you.
One question I would have is, did you at some point consider moving to cln for performance reasons? And why did you not? I think at some point the owner of zerofeerouting sais he had had too, for the size of logs alone (but as far as I know, this has been improved in LND).
reply
Performance is fine. Shortly before the new compact database format was introduced I had issues because of the database file size, but this has been resolved years ago. I think ZFR would have worked with this updated version of lnd.
As far as I know you can't switch implementations while retaining your channels and/or node ID. I'd rather not start from scratch, a lot of how LN works is reputation based.
reply
Nice, thanks for your contributions to the BTC world :-) How did you move your node, can you expand on that, do you still have notes?
reply
I stopped the old server, copied the files using scp, edited the name and started the new server. During that I made extremely sure that the old copy cannot be started anymore (intentionally breaking stuff like deleting the lnd binary). Once the new server was up and running, I deleted all traces of the old server on the old host. That's it.
reply
nice, thanks!
reply
here I wrote a guide about different scenarios to move a LND node. See option 7. https://darth-coin.github.io/nodes/shtf-restore-lnd-node-en.html
reply
77 sats \ 1 reply \ @OT 23 Mar
Do you feel like it's risky having that much liquidity running a LN node?
reply
Yes.
reply
I believe I had a channel yo your node long ago. Then it was closed haha thanks for sharing
reply
I opened 3 channels with you over the span of 3 years 2022-2024, and tried to be a good peer but all of them ended with your side requesting a coop close. Managed to keep them open for at least 290 days each time, before finally being deemed as "not good", I guess in the end. Anyway all the best!
Great work! I used to have to some channel with zero fee routing!
reply
Amazing study! I've wondered whether exchanges can be good routing peers, based on the assumption that the highest volume of transactions will be from people buying and selling sats. Would you say that's true?
reply
reply
🫡 Out of curiosity, did you ever experiment by running it tor-only?
reply
No. Given the non-anonymous aspect of my node (a questionable choice...) I don't see the point of restricting clearnet traffic.
reply
I could response that... It's no good.
reply