Oddbean new post about login | logout does having multiple custodial wallets mitigate this risk?
Then you have to manage different pools of liquidity. You shouldnt have to say “oh, let me get my other wallet” all the time
If you have WoS and Muun, you pay from the one that hasn’t bent yet knee. When one goes down, you learn about how to open a channel real quickly.
because it is lightning, its all hot wallet risk 😅 might i suggest doing some homework on Liquid? It offers a tradeoff to keep off-chain funds offline without an on-chain footprint, it could help you wrap your head around what federation risk is as people explore fedimint
yes, and there’s that Why do you think a custodial Lightning wallet is more popular than a Liquid wallet?
I’ve never used Liquid or even seen it in action. Part of it could just be network effect and the proliferation and improving UX of Lightning wallets. What is Liquid currently used for that would make it appealing to new users?
I use it to swap for outbound/inbound liquidity on my lightning node using things like CoinOS, SideSwap, and Peerswap (p2p) . to be honest, it makes no economic sense to do it (which is why no one uses it) but after using lightning for a long time one tends to look for ways to mitigate hot wallet risk -- Liquid offers a solution to that
I believe the use case is still confidential transactions for large transactions
So…mainly for institutional use, whale traders, and exchanges?
That was who they were trying to market to I believe so. There were some efforts made for everyday use, but it just didn’t catch on.