Amboss, a reputable Bitcoin Lightning Network (LN) data analytics entity, recently debuted the LINER (Lightning Network Rate). This ground-breaking index aims to quantify Bitcoin returns in the LN, thereby highlighting its potential to generate low-risk business income. A public statement from Amboss, featured in Bitcoin Magazine, emphasized that LINER serves as a standard rate for Bitcoin, free of credit risk, drawing parallels to the function of LIBOR (London Interbank Offered Rate) in conventional finance. Its primary objective is to provide corporations with an alternative means to gain Bitcoin exposure without encountering the credit risks linked with CeFi yield platforms.
Amboss’s co-founder and CEO, Jesse Shrader, suggested that the transparency of actual yield rates for Bitcoin held in the LN could help businesses realize the strategic flaw of relying on CeFi yield platforms. He also mentioned the benefits of a long-overdue shift in payment networks. Nik Bhatia, known for his work on The Bitcoin Layer, applauded LINER for being a pioneering reference rate derived from the Lightning Network, facilitating the development of unmanipulated money markets devoid of central authority.
Bitcoin investor and writer, Allen Farrington, acknowledged the merit of a reference rate such as LINER for ascertaining the genuine cost of capital. He also spotlighted the Lightning Network’s development as a self-reliant financial system catering to individual and business demands alike.
Moreover, Amboss manages Magma, a hub that enables the trading of Lightning channels, thereby providing Bitcoin holders with an avenue to earn BTC by creating Lightning channels to various destinations. As stated in a company press release, “Magma facilitates a unique Bitcoin yield generation opportunity that doesn’t involve custodial risk, avoiding the pitfalls of underperforming CeFi yield platforms such as Celsius and BlockFi.”
LINER index includes two key metrics: LINER Cost and LINER Yield. These provide corporations with indispensable insights into the Lightning market, facilitating comparisons between LINER Cost and conventional payment card fees. This data-driven approach empowers significant Bitcoin holders to make well-informed decisions about managing their Bitcoin assets.
Jonathan Bier, a renowned author and investor, emphasized the potential of the LINER index as a future reference rate for Bitcoin-related investment decisions. The advent of LINER extends new possibilities for portfolio managers, investors, and businesses, as they can now utilize this index in their decision-making processes.
Through LINER, Amboss seeks to enhance the corporate adoption of the Lightning Network by showcasing the potential cost efficiencies and low-risk yield opportunities presented by the Lightning-based payment framework. The index offers a compelling motivation for major Bitcoin holders to adopt self-custodial strategies, promising higher returns while minimizing risks. For further information about Amboss and the LINER index, interested individuals can refer to the overview page and Amboss’s official website [https://amboss.space/stats/liner].