Lightning labs introduces lifi defi for bitcoin
Lightning Labs today introduced the way to transact and trade funds locked in the Lightning Network, where the node operators don’t have access to the transacted information, but get rewarded for providing liquidity.
– Lightning Labs develops software for the Bitcoin Lightning Network.
– It just released a new tool that allows Bitcoin users to get in on DeFi.
– Lightning Pool provides users with a way to trade BTC funds locked up in the network.ADVERTISEMENT
It’s calling it “LiFi,” because the whole thing’s non-custodial and because it sounds like DeFi, or decentralized finance, which refers to (generally Ethereum-based) non-custodial financial protocols that pay people for providing liquidity to exchanges and lending protocols.
Now that’s coming to Lightning Network. On LiFi, “Pool sellers can earn yield on real bitcoin without trusting a third party or losing custody of their funds. This yield is earned from buyers on Pool willing to pay a premium for access to new capital on Lightning without counterparty risk.”