Post
Topic
Board Development & Technical Discussion
Re: Lightning node for fees
by
franky1
on 23/03/2021, 06:42:52 UTC
@Alex Bosworth report on  Feb 19, 2019 that his node routing more than $10,000/month and getting paid 0.25% for routing
if you buy hardware for $150 and routing more than $10,000/month you can have ROI after 4 months (lucky case)

https://twitter.com/alexbosworth/status/1097889950865866752

0.25% = $25 on $10k
you better not have more than 4 channels or else closing 4 channels each month to reaggregate will cost you 4x$3 to open and 4x$3 to close ($24)

so good luck operating a route with only 4 channels and breaking even

hey thanks for your time. Why do i have to close and re open the channels every month?

if you only have $10k invested. and you do $10k a month.. your funds are no longer yours in a specific channel path at the end of the month
before ever routing:
CustA($2500:$0)\
CustB($2500:$0)\\_you ($10000:$0) service
CustC($2500:$0)//
CustD($2500:$0)/

after doing $10k trade
CustA($0:$2500)\
CustB($0:$2500)\\_you ($0:$10000) service
CustC($0:$2500)//
CustD($0:$2500)/

as you can see. you now have $0 in you<>service on your side
yet... yes you have 4x$2500 on your side in the 4 custABCD<>you channels
but this cant help you be a payment path to a service .. so you need to reaggregate

if you want to continue being a path between customers and a service you have to close the channels and reaggregate the value from cust4x$2500. to $10k in the you<>service channel. and re assume new channels with new customers with funds.

you can stay open longer by having say $30k in the service channel. but then you would need:
either
   12 customers with $2500 to use up your $30k over 3 months
   but even then..
   12 channels closing after 3 months = $3onchain x 12 close + $3onchain x 12 open
   $72 costs.. and 30k over 3 months is still about $75 income
or
  4 customers with $7500 to use up your $30k in 3 months
  where then...
  4x$3onchain close 4x$3 onchain open
  which is $24 cost and $75 income

but its the balancing act of limiting channels and increasing funds of you. increasing funds customers have with you. to try to keep you active long enough to profit

so keep that in mind