LightningFi #1 —
Global Lightning Adoption with Channel Mining
Lnfi is here to bring web3 and tokenization to the Lightning Network through LightningFi. Essentially, LightningFi = DeFi on the Lightning Network. LightningFi will unlock a world of opportunities for the Lightning Network as the ultimate settlement layer. Our vision is for everyone to own an LN node and for anyone to send and receive payments over Lightning. And, LightningFi will serve as a catalyst for achieving that vision.
DeFi has dramatically scaled Ethereum by improving capital efficiency, interoperability, and composability, driving its Total Value Locked (TVL) to over $500 billion. In contrast, the Lightning Network’s TVL remains around $300 million. (Disclaimer: a large portion of Ethereum’s TVL is passive while Lightning Network’s TVL is actively recycled for routing transactions)
What’s the biggest hurdle for the Lightning Network? Opening Lightning Nodes and Channels!
Lightning Nodes are like airports, and channels are the flight paths that connect them, forming the backbone of the efficient Lightning Network. However, the high costs and unprofitability associated with channels (e.g., management costs, fees, and limited use cases) need to provide stronger incentives for users to adopt them.
Today, Lnfi Network is excited to introduce our first initiative with LightningFi: Channel Mining with our LN Node (formerly MicroNode). Lnfi’s Channel Mining aims to incentivize users and reduce these barriers by introducing tokenomics to the Lightning Network, making owning a Lightning Node and creating channels sufficiently rewarding with positive flywheel as protocol revenue will be distributed to stakers.
What is Channel Mining?
Channel mining is an innovative way to earn rewards by providing liquidity and facilitating transactions on the Lightning Network.
Most importantly, Channel Mining is fully secured by Lightning Network (launched in 2018) without the need for intermediaries or third-party trust as funds are held under users’ self-custody on the Bitcoin mainnet. Additionally, the funds actively provide liquidity and contribute to the Lightning Network ecosystem. This sets Channel Mining apart from most existing BTC Layer 2 (L2) or bridging solutions.
Here’s how it works:
- Set Up Your Node using LN Node
Use our LN Node’s intuitive interface to effortlessly set up your Lightning Network node in a few simple clicks. - Open Channels
Create channels with other participants in the network, providing the necessary liquidity for transactions. - Earn Rewards
Earn token incentives by completing objectives.
As we pave the way forward, we’re thrilled to announce our upcoming LN Node OG Series sale on LN Starter (formerly Lightning Starter). Stay tuned for more details in the upcoming announcement as we embark on this transformative journey together!
Lnfi Official Links
Website: https://www.lnfi.network
Twitter: https://x.com/LnfiNetwork
Telegram: https://t.me/LnfiNetwork
Gitbook: https://docs.lnfi.network
