- Amboss has introduced a new subscription service called Hydro.
- Hydro automates liquidity management for businesses on the Lightning Network, making it easier for them to receive payments without needing LN expertise or relinquishing custody of funds.
- Hydro aims to reduce Lightning payment fees and accelerate business adoption, ultimately fostering a decentralized payment ecosystem.
Amboss, a Lightning Network data provider, has unveiled a new subscription service called “Hydro,” created to automate getting the liquidity required on the Lightning Network, which has been a source of frustration for businesses and individuals receiving payments. This enables enterprises to receive payments via the Lightning Network without requiring LN knowledge or relinquishing custody of their funds.
By automating the sourcing of payment liquidity from decentralized sources directly to a business’s LN node, Hydro tries to simplify the Lightning Network’s payment liquidity process.
According to the release, as more firms adopt the Lightning Network, the developing circular economy leads to increasingly cost-effective Lightning payments, with prices reducing from an initial 3.5% setup cost to as low as 0.003% for successive payments.
In emphasizing Hydro’s transformative potential, Jesse Shrader, Co-Founder and CEO of Amboss, stated, “Hydro is a game changer for businesses to get the benefits of the lightning network without trusted custodians, intermediaries, or the headache of channel management. As the lightning network welcomes global participation, Hydro simplifies real-time payment infrastructure to bootstrap global circular economies, as we’ve seen in Costa Rica’s ‘Bitcoin Jungle.’
Before now, obtaining liquidity for firms on the LN has been difficult since entrepreneurs generally lack the time and skills required to run an LN node. As a result, retailers utilizing full nodes have been sluggish to adopt Lightning, often forcing them to rely on trusted custodians, compromising some of the privacy and sovereignty benefits Bitcoin gives. Thanks to Hydro, businesses may finally reap the full benefits of LN adoption without the related headaches.
Amboss also runs Magma, a marketplace for buying and selling Lightning channels, which Hydro uses to get high-quality liquidity from a public market. Lightning channels open up new payment routes within the Lightning Network.
By selling these channels on Magma, Bitcoin savers can earn BTC by opening Lightning channels to various destinations like online stores, wallets, or other LN users. Because Lightning channels allow for self-custodial Bitcoin holding, Magma offers innovative Bitcoin yield prospects without custodial risks, avoiding the pitfalls encountered by some centralized finance (CeFi) yield platforms.
The functionality of Hydro entails obtaining select Lightning channel leases that match particular quality standards at the lowest attainable prices. Users can specify their preferred node’s size (capacity), and channels will be automatically bought using prepaid Amboss credits known as “ambucks.” Users can also define a target inbound liquidity level, allowing for cost-effective and needs-based channel management.
Amboss’ Hydro intends to transform the Bitcoin Lightning Network landscape by making it more accessible and user-friendly for businesses, promoting wider adoption, and fostering the establishment of a robust, decentralized payment ecosystem.
To know more about Amboss or subscribe to their extensive Lightning Network insights, services, and more, visit their website.