Lightning Channel management is still in its infancy. I took some notes from a talk given by Alex Bosworth about best practices for channel management.

channel size:

  • too small: $1 (article on yalls.com)
  • too large: 2x the size of max payment

What is ML?

Don’t want to connect to 1ml nodes because you won’t make any fees because everyone else is connected to that node which means you won’t make any fees off it!

If you service more under-connected/under-served nodes, you’ll make more in fees

Channel age can be a signal for stability - older the channel = more reliable route - new nodes will have a harder time b/c they’ll have to put their time in - nodes with higher reputation will be able to charge higher fees - nodes with lower reputation will have to take lower fees initially to gain reputation