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Understanding liquidity
Paul Miller edited this page Jun 8, 2023
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Mutiny has automatic lightning liquidity thanks to its LSP integration with Voltage's Flow 2.0 service. You can read more about Flow 2.0 on Voltage's blog.
From a user's point of view, it's pretty simple:
- Ask for money on lightning by creating an invoice.
- When the sender pays that invoice, a lightning channels is automatically opened to you and the payment is pushed through that new channel, minus a fee that goes to pay for the channel creation.
- Now you can send and receive on lightning. Send because you have funds on your side of the new lightning channel, and receive because the channel was opened with an extra margin beyond the amount you initially received.
If you exhaust the channel (as in, the original amount you received AND the extra margin is all on "your side" of the channel), then the next time you receive on lightning an additional channel will be opened. Now you will have the combined liquidity of both channels.