anvil, a data analytics provider for the Bitcoin Lightning Network (LN), has introduced LINER (Lightning Network Rate), an innovative benchmark designed to measure Bitcoin returns on the Lightning Network and highlight its low-return potential for low-risk institutions. According to a press release shared with Bitcoin Magazine, LINER acts as a reference interest rate for bitcoin with no credit risk, similar to the traditional financing rate LIBOR (London Interbank Offered Rate). The index aims to provide an alternative for institutions seeking exposure to bitcoin while avoiding the credit risks associated with CeFi yield platforms.
“By reporting real rates of return on bitcoin held on LN, companies will recognize the strategic error of trusting CeFi revenue platforms while benefiting from payment network disruptions that are decades overdue,” said Jesse Schrader, co-founder and CEO of Amboss. Nick Bhatia, Creator Bitcoin layerhailed LINER as the first reference rate of its kind derived from the Lightning Network, contributing to the creation of uncontrolled financial markets independent of a central authority.
Allen Farrington, a Bitcoin writer and investor, acknowledged the value of a benchmark like LINER to assess the true cost of capital, and highlighted the growth of the Lightning Network as a self-sustaining financial ecosystem for both retail and corporate needs.
Amboss works too magma, a marketplace that facilitates the buying and selling of Lightning Channels, enabling bitcoin holders to earn BTC opening Lightning Channels to various destinations. “Because Lightning Channels are self-custody methods for holding bitcoins, Magma enables new bitcoin revenue without custodial risk, avoiding the risks of failed CeFi revenue platforms like Celsius and BlockFi,” the press release stated.
LINER includes two insightful metrics: LINER Cost and LINER Yield, which provide organizations with valuable insights into the lightning market. These metrics allow comparisons between the cost of LINER and the fees of traditional payment cards, enabling large bitcoin holders to make informed decisions about their bitcoin holdings.
Jonathan Beer, author and investor, has pointed out the potential future importance of the LINER indicator as a reference rate for Bitcoin-based investment decisions. The introduction of LINER opens up possibilities for portfolio managers, investors and companies to make use of the index in their decision-making processes.
With LINER, Amboss aims to encourage enterprise adoption of the Lightning Network by demonstrating the cost savings and low-risk return potential offered by Lightning-enabled payment infrastructure. The index provides a clear incentive for large bitcoin holders to use self-guarding strategies and earn higher returns while minimizing risk. For access to more information about Amboss and LINER, interested parties can see www.amboss.com summary And https://amboss.space/stats/liner.