LINER (Lightning Network Rate), was created as a novel index to measure bitcoin returns on the Lightning Network, demonstrating its potential for low-risk enterprise yield.
PORTLAND, Ore., June 6, 2023 /PRNewswire-PRWeb/ -- Amboss, the leading data analytics provider for the Bitcoin Lightning Network (LN), announces the launch of LINER (Lightning Network Rate), a first-of-its-kind index that demonstrates low risk yield for enterprise bitcoin holders for the first time. LINER can be thought of as a benchmark interest rate for bitcoin free from credit risk.
LINER is similar to the LIBOR (London Interbank Offered Rate) in traditional finance, which is a benchmark interest rate for short-term loans between global banks, except LINER is free from credit risk. In other words, LINER is well-positioned to be an alternative to enterprises seeking exposure to bitcoin without the credit risk that imploded CeFi yield platforms towards the end of 2022.
Jesse Shrader, Co-Founder and CEO of Amboss, shared, "By communicating real yield rates from bitcoin held on the LN, enterprises will recognize the strategic error in trusting CeFi yield platforms while capturing the benefits of payment network disruption that is decades overdue."
Nik Bhatia, creator of The Bitcoin Layer, a premium markets research provider, analyzing bitcoin through a global macro lens, articulated, "LINER is a first-of-its-kind reference rate derived entirely from the Lightning Network adjacent to Bitcoin. Unlike traditional reference rates that are set by a central bank like the Fed, LINER and other LN-native rates are derived entirely by free market forces — the first step towards money markets unmanipulated by a central authority, much less fragile and prone to the booms and busts of the traditional monetary order. The first step toward building any active capital market is a regularly-published and updated yield curve to attract capital allocators. Amboss is taking the first step toward bringing this concept to reality, and bringing Bitcoin over LN one step closer to denominating the future of our world financial system."
Allen Farrington, writer and investor, said, "Just as with LIBOR in traditional finance, it is incredibly useful to have a reference rate for the true cost of capital. It's clear that Lightning Network is quickly becoming a self-sustaining financial ecosystem to support both retail and enterprise needs. Tools like Amboss' LINER are needed to see the next wave of enterprise adoption of Lightning."
Amboss operates Magma, a marketplace for buying and selling Lightning channels. Lightning channels create new pathways for payments in the Lightning Network. Selling lightning channels on Magma enables bitcoin savers to earn BTC from opening lightning channels to destinations like online stores, wallets, or other lightning users. Since lightning channels are self-custodial ways to hold bitcoin, Magma enables novel bitcoin yield without custodial risk, avoiding the pitfalls of failed CeFi yield platforms like Celsius and BlockFi.
Bitcoin yield with Magma comes from the liquidity needs of lightning-enabled payment destinations. Given the global demand for rapid settlement and low risk profile, Amboss is equipping users with a key metric, LINER, to show the ROI generated from selling lightning channels as well as associated costs.
Amboss created LINER as a novel and insightful dual index, including LINER Cost and LINER Yield, to measure both sides of the lightning market: buyers of liquidity and sellers of liquidity. This benchmark provides enterprises with insight into the opportunities within the lightning network, both for cost savings versus traditional settlement methods and low-risk yield versus holding bitcoin in cold storage.
With these new LINER metrics, enterprises can make direct comparisons from the LINER Cost to traditional payment card fees. Large bitcoin holders can now weigh the opportunity cost of not deploying cold storage bitcoin to the Lightning Network, or rethink their strategy of using trusted bitcoin custodians. Now, there is a clear incentive for large holders to put their bitcoin to work in a self-custodial fashion while earning higher returns from their bitcoin holdings at minimal risk.
Jonathan Bier, author and investor, said, "The creation of this index is certainly an interesting development. If Bitcoin is successful, perhaps in the future this rate will be considered an important reference rate, used by portfolio managers when making Bitcoin based investment decisions. If LINER is 4%, a return that is "custodial risk free," perhaps Bitcoin denominated investors will demand a premium to this rate when considering making a loan or other investment. Alternatively, perhaps speculators, lightning liquidity providers or other businesses may wish to trade derivative contracts based on LINER."
To learn more about Amboss or subscribe to Amboss' one-stop shop for Lightning Network insights, services and more, visit: https://amboss.space/.
To learn more about LINER, please reference this overview and visit https://amboss.space/stats/liner.
For media inquiries, please contact Phil LeRoy at (310) 260-7901 or phil(at)melrosepr(dot)com.
About Amboss Technologies
Amboss is a leading data analytics provider for the Bitcoin Lightning Network, using machine learning to offer optimized routing and tools that redefine decentralized finance. Amboss supports merchants and consumers to identify optimal peers and payment routes based on cost, reliability, or reputation as well as enterprise-grade risk management. Amboss also operates Magma, the leading marketplace for buying and selling Lightning channels that is the leading platform to enable users to earn bitcoin yield from savings without relinquishing custody.
Media Contact
Phil LeRoy, Melrose PR, (310) 260-7901, [email protected]
SOURCE Melrose PR
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