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LSP best practices

Bitcoin Stack Exchange

Bitcoin News / Bitcoin Stack Exchange 155 Views

The problem of getting inbound liquidity on the Lightning Network has given rise to Lightning Service Providers, essentially node operators on the Lightning Network, that provide new nodes with inbound liquidity, by opening channels to them.

Since this concept has gained a lot of popularity and there are already multiple companies innovating on this topic, I was wondering whether there is already distilled information about the best practices for operating LSPs out there.

I'm particularly looking for this information:

  • Rough estimation about recommended channel size to open to customers (granted, this is heavily dependend on use cases, resp. the usage of an indiviudal user)
  • How and when to deal with potential capacity increases/decreases (--> multiple channel support?)
  • How to deal with dormant channels (inactive for a prolonged time frame)
  • How to deal with channel reserves in a UX-friendly way

Any input is appreciated.


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