⚡ 1 year anniversary, DLCs, RGB, Ecosystem and much more!
Welcome to the 22nd issue of this newsletter which covers everything at the intersection of the Lightning Network and Finance, as well as updates about LN Markets. If you enjoy this content, feel free to spread the word!
🎂 1 year anniversary
Just 1 year ago, we launched the first real-time settled derivative trading platform: LN Markets.
LN Markets leverages Bitcoin’s Lightning Network to provide our dear users with:
⚡ Faster settlement: T+1 second
🔓 Risk reduction: ratio (daily volume / cold wallet) x 4
😀 Better UX: trade directly from your wallet
💸 Cost-reduction: 2 on-chain fees for an infinite number of trades
And your response has been amazing!
Overall, we have processed (despite a trading limit of 0.01 BTC):
✨ 150,000 trades
⚡ 100,000 Lightning transactions
💥 $100Mio in Aggregate Trading Volume
We are also proud to build for a global user base (40% EMEA / 30% APAC / 30% Americas). Our main milestones:
🤖 Algorithmic instant trading with our Open API
For the year to come, our action plan is just to keep building stuff (though not sure on which side of the bell curve we are):
Our next move is the launch of LN Clear, a non-custodial clearing for OTC derivatives for brokers, traders and market makers.
LN Clear is a private network of payment channels where trading firms can meet their peers to trade and clear instantly OTC derivatives. LN Clear ensures that the whole process from trade confirmation to final settlement is secure, fast and simple.
Though any type of OTC derivative could be cleared on LN Clear in the near future, we focus first on the fast-growing Bitcoin Options markets. More on that very soon!
🧰 Discreet Log Contracts (DLCs)
Here is how it works: you can become an oracle and decide to attest to an observed value, like $51,000 for bitcoin price on March 3rd, 2021 at 9:00AM UTC. Krystal Bull will create an attestation for the value you entered (through a digital signature) and anyone can use this attestation for the settlement of Bitcoin-based derivatives. Here is a demo:
Crypto Garage has released a new version of P2PDerivatives which gives you the ability to close DLCs even when the price goes outside of the range defined in your contract. This allows to cover wider range of outcome with little overhead. Next on their roadmap is support for multi-oracles and move to a P2P network infrastructure.
MyCitadel is now live! It is the first wallet that supports Bitcoin and RGB assets, and it is designed with Taproot and Multisigs in mind. Activating RGB support can de done via several ways (rgb sdk, MyCitadel node integration, RGB Node+LNP Node+BP Node integration, etc).
With RGB, it becomes for example feasible to transfer up to 64,000 NFTs in a single transaction Bitcoin, with full privacy:
A very bullish metric: there are now 9,300 public nodes in the Lightning Network, an 80% increase year-to-date!
While more and more exchanges add support to Lightning:
It’s great to see the pioneers exchanges in the space handling and ever-growing number of transactions:
The LN-based Bitcoin payment platform Bottlepay has announced a $15Mio fundraise, reaching a post-money valuation of $71 million. The biggest funding round to date for a Lightning Network company?
And finally, a very promising project, though still experimental. This Lightning Browser extension uses native messaging to connect to wallet interfaces. It could be a massive added value for the overall Lightning UX:
💎 Perfect gift.. Is it the end of the bull run already?
🎥 Can’t wait for theaters to re-open
Thank you for your support and let’s keep building the future of finance together!