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Stephan Livera Podcast

Aug 4, 2018

In this episode with Nik Bhatia, we talk about the potential for forming capital markets on top of Bitcoin and the Lightning Network, by calculating an interest rate (LNRR - Lightning Network Reference Rate) based on the routing fees earned in staking BTC to Lightning Network payment channels. We discuss:

  • How you could earn interest on your bitcoins with Lightning Network
  • Different ways LNRR could be calculated
  • Differing levels of risk available within bitcoin (cold storage, LN staked, off-chain lending)
  • LN Interest or fees?
  • Fractional Reserve vs Full Reserve
  • Channel management and security risk
  • CFA inclusion of cryptocurrencies into course material