Lightning Labs has launched a peer-to-peer, non-custodial liquidity marketplace on the network called the Lightning Pool. The new offering enables lightning node operators to buy or sell access to liquidity by trading on the Lightning Pool. Evolution Towards LiFi According to the announcement, the new functioning opens the door towards the evolution of new lightning financial products or “LiFi.” The concept of LiFi, however, is completely different from DeFi as Bitcoin holders don’t need to convert their holdings into wrapped BTCs to earn yields on a DeFi platform. Moreover, with the launch of the new service, pool sellers will now be able to yield on Bitcoins. This means users can now generate non-custodial yield on their bitcoin holdings, without losing custody of their funds or by trusting a third party. Solving Liquidity Issues with Lightning Pool Liquidity Marketplace Lightning Labs’ new service comes amid the network’s drive to solve its liquidity problem. Users of the platform tried to solve this in a “variety of ad hoc ways” such as over the counter and chat groups. However, Lightning Labs noticed that these features were available only to certain sections of its users. Hence, they decided to come up with a standardized solution called the Lightning Pool that enables everyone to participate. The announcement release further added: “With this alpha release of Pool, we’ve put forth a new way to solve the inbound liquidity problem by framing it as an economic problem in the context of market design. The Lightning Pool helps those that need to receive funds over Lightning (merchants, exchanges, services, etc) obtain the inbound liquidity they need and also helps to route nodes figure out where to open channels. As this is an early version of the system, there’s still a long road ahead of us to properly bootstrap the liquidity marketplace, as well as to improve the capabilities and security of the system over time.”
The post Lightning Labs Introduces Lightning Pool Liquidity Marketplace appeared first on Cryptoknowmics-Crypto News and Media Platform.
from Live Crypto News – Cryptoknowmics-Crypto News and Media Platform
