Nik Bhatia

In this episode we talk about the potential for forming capital markets on top of Bitcoin and the Lightning Network, by calculating an interest rate (LNRR – Lightning Network Reference Rate) based on the routing fees earned in staking BTC to Lightning Network payment channels. We discuss:

  • Interest with no counter party risk – why this is historically important
  • Different ways LNRR could be calculated
  • Differing levels of risk available within bitcoin (cold storage, LN staked, off-chain lending)
  • LN Interest or fees?
  • Fractional Reserve vs Full Reserve
  • Channel management and security risk
  • CFA inclusion of cryptocurrencies into course material

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  1. Pingback: Earning Interest on Bitcoin’s Lightning Network | 1 Crypto

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  3. Pingback: Earning Interest on Bitcoin’s Lightning Network – CryptoNews – Cryptocurrency news, bitcoin, ethereum, blockchain, smart contracts

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