Release of Boltz-based trustless swaps with Diamond Hands node
Dear Lightning node operators across the globe,
I’m very excited to announce that we’ve officially beta-launched Diamond Swap, Boltz-based trustless swap service between onchain and offchain liquidity.
This is a key step to turn the Diamond Hands node into a legitimate LSP(Lightning Service provider), serving not only the Diamond Hands community in Japan but also Lightning node operators globally.
The key advantages of Diamond Swap
- Trustless
Diamond Swap is based on Boltz and offer non-custodial/trustless swapin and swapout services. We don’t want custody of your funds and you don’t have to trust us to swap onchain/offchain liquidity through the DH node.
2. Cheap
We offer a competitive rate for swapouts, where you convert Lightning capacity with onchain bitcoins.
Currently, our swapout service fee is 0.2%, which is pretty decent already, but we aim to continue to offer the best rate to serve the global routing ecosystem.
3. Earn
In addition to the competitive swapout fee rate, you can even earn up to 0.15%(1500ppm) by swapping in (onchain to Lightning) at the moment, providing onchain liquidity to the Diamond Hands node.
(*The reward rate might be adjusted in the future based on the usage)
Also, you don’t need to close a channel when swapping in with Diamond Swap, saving even more on onchain fees.
4. Transparent
We try to make our fee rate and other fees as clear and transparent as possible. What you see is what you get.
Swap now with Diamond Swap!
Diamond Swap use cases
On-demand inbound capacity generation
By swapping out, you can generate inbound capacity with the DH node whenever you need it. Open a channel to our node and swapout. This way, you immediately get a balanced channel with us without even getting permission from us.
Refill Lightning wallets cheaply
Do you frequently refill your Lightning wallets such as Wallet of Satoshi, Phoenix, Breez etc?
Those wallets typically charge up to 1% fees for onchain to Lightning capacity conversion. This is convenient for beginners but the cost adds up if you are a frequent user.
By using Diamond Swap’s swapin, you can reduce the cost of refilling or even earn sats at the same time!
Rebalance/arbitrage
Diamond Swap can be used as an alternative to Loop by Lightning Labs for merchants and other projects to rebalance channel capacity.
Loop is more established and has better tooling, but Diamond Swap is cheaper at the moment and is also trustless. We are not a Loop killer by any means but this is another tool people can take advantage of in the LN ecosystem.
Experienced routing node operators can also use Swapin/Swapout to find opportunities to arbitrage as well.
Roadmap
Diamond Swap is still in beta and there is still a lot of room for future improvements. Though we cannot promise anything, here are some of the things we have in mind in the near future.
UI/UX improvement
The current UI/UX is still far from great and we are going to make it even easier to swapin/outs in the future. Especially, we would like to improve error handling/message and tutorials for first-time users.
APIs/automation
There are already some requests for APIs to automate swapin/swapout with Diamond Swap.
Channel selection
There is some demand for choosing specific channel when swapin for node operators.
If you are a node operator out there, test it out and tell us any feedback or suggestions. We’d really appreciate it and we will continue to work on making the Diamond Hands node better and contribute to the Lightning ecosystem in general. (My twitter or Telegram:KojiH )
Swap now with Diamond Swap!
