Routing
Aimed for forwading payments successfully while generating profit.
Capital requirement
Channels and peers
- numerous (~10+) big channels to well connected nodes
- connect to the network edge to get usage
- aim to connect node clusters (isolated groups)
Liquidity
- balanced between local and remote overall
- individual channels should be able to forward payments in both directions
Uptime
- aim to be perfect
- offline routing nodes with many public channels are causing networkwide payment failures
- greatly affects the reputation of the routing node
Management
- autorebalancing (cronjobs are useful)
- create inbound and outbound liquidity as required
- balance between multiple nodes
- close inactive channels
- open to directions where liquidity is required
- use Lightning Pool bids and asks
- batch channel opens to save on miner fees
- fund channels from external wallets
- close to external addresses to reduce the hot wallet risk
- explore the many tools available
Strategies
Connect clusters and big payment processors
- bidirectional traffic
- fees are low
- highly competitive (lots of liquidity is in private channels)
Provide liquidity to merchants
- high incoming liquidity required
- fees can be set to moderate - high
- selling channels via Lightning Pool often falls into this category
Payment hub for small nodes
- fees can be left to be low
- traffic is mostly outgoing
- should encourage the usage of private channels
- offline public channels lead to payment failures and affecting the routing node’s reputation)
Sell incoming liquidity
- LOOP
- Bitfinex
- set high fees due to unidirectional traffic and the quick drain of inbound capacity
- not all LN supporting exchanges are connectable and need individual evaluation about the direction of traffic
Examples