Lightning Ocean

  • Lightning Ocean is the Dapp`s marketplace for payment channel capacity.
  • Lightning nodes connect to the Dapp on a P2P-basis to trade payment channel capacity for satoshi (BTC).
  • Smart contracts are used to sponsor liquidity on the Lightning Network.
  • Lightning nodes act as Liquidity Maker, Liquidity Taker, and/or operate as Lightning Oracles.
  • Lightning Ocean tokenizes the fee market of participating lightning nodes using Plenny, PL2.

Liquidity Maker

  • Liquidity Makers providing inbound capacity (i.e. receiving payments via the remote balance) yield higher rewards than Liquidity Takers that benefit from outbound capacity (i.e. sending payments via the local balance). The exact ratio is determined by the market participants on the Lighting Ocean.
  • The Liquidity Maker is a lightning node that provides inbound capacity (remote balance for receiving payments in sats).
  • In the process, the Liquidity Maker earns Plenny (PL2) as a reward for operating as a liquidity provider (LP) on the Lightning Network, and for participating in the Dapp.

Liquidity Taker

  • The Liquidity Taker gets Plenny (PL2) based on the outbound capacity of the payment channel (= local balance for sending sats).  The process of creating and/or claiming Plenny, PL2 is called “Cross-Chain Collateral Proof, CCCP”.  The rewards depend on the underlying assets locked in the payment channel, and are utilized to pay rewards in PL2 to Liquidity Makers that offer inbound capacity (remote balance for receiving sats).