Post
Topic
Board Development & Technical Discussion
Merits 6 from 1 user
Re: The Lightning Network FAQ
by
Carlton Banks
on 21/10/2020, 07:36:38 UTC
⭐ Merited by LoyceV (6)
It seems also to include withdrawals to LN (which is, imo, at most equally important than deposits, so people can buy directly LN coins) and seems to have been added already in December 2019. The deposited coins are credited as "LNX" and can be converted for free to Bitcoin. It is true however that there are relatively few news articles about that and most of them focus on Bitfinex' LN node. Since September 2020 also Wumbo channels seems to be supported.

The "buy LN coins directly" step seems curious, possibly because they need a way to assess demand for LN withdrawals. With Wumbo channels and LN withdrawals, Bitfinex have that huge advantage as an exchange over the others, manifest as the potential for their own liquidity to be far greater than other exchanges without Lightning support. In a (likely soon) bullrun, this will make Bitfinex the most attractive platform to traders who wish to have more control over risk management. Once a 2nd major exchange enables LN deposits & withdrawals, all of them will be essentially forced to do it so as not to lose out in the arbitrage battle.


They also seem to want to add Tether deposits/withdrawals via LN. As Tether is an Omni token, this could mean OmniBOLT support.

However questionable Tether is as a concept, that would be a pretty remarkable facility for Bitfinex traders to have at their disposal. I thought that Tether had changed into an Ethereum based token though?