Amboss, the leading data analytics provider for the Bitcoin Lightning Network (LN), has introduced LINER (Lightning Network Rate), an index that showcases the potential for low-risk enterprise yield on the Lightning Network.
LINER serves as a benchmark interest rate for bitcoin, offering a credit risk-free alternative to traditional yield platforms. By providing real yield rates from bitcoin held on the LN, Amboss aims to highlight the strategic errors of trust in CeFi yield platforms and the advantages of disruptive payment network technologies.
LINER is comparable to LIBOR (London Interbank Offered Rate) in traditional finance but is devoid of credit risk. It signifies a step toward money markets that are less susceptible to manipulation by central authorities and less prone to the boom and bust cycles of the traditional monetary system. With LINER, Amboss is paving the way for an active capital market with a regularly updated yield curve that attracts capital allocators and contributes to the future of the global financial system.
Amboss’ LINER index comprises two components: LINER Cost and LINER Yield. This comprehensive benchmark enables enterprises to assess cost savings versus traditional settlement methods and the low-risk yield offered by the Lightning Network compared to holding bitcoin in cold storage. Large bitcoin holders can now consider the opportunity cost of not utilizing self-custodial lightning channels to earn higher returns with minimal risk, thereby redefining their investment strategies.
Amboss is known for its marketplace, Magma, which facilitates the buying and selling of Lightning channels. Lightning channels create new pathways for payments within the Lightning Network, allowing bitcoin savers to earn BTC by opening channels to destinations like online stores or wallets. Magma enables bitcoin yield without custodial risk, providing a safer alternative to failed CeFi yield platforms.
The introduction of LINER has piqued the interest of industry experts and investors alike. They foresee the possibility of LINER becoming an important reference rate for bitcoin-based investment decisions, potentially leading to the development of derivative contracts based on LINER. The index has the potential to further support the enterprise adoption of the Lightning Network and its role as a self-sustaining financial ecosystem.