Lightning Labs launches liquidity marketplace on the Lightning network

Lightning Labs, a startup focused on developing the Lightning Network, a Layer 2 payment channel network for Bitcoin, has launched a new marketplace for liquidity on the network.

According to an announcement, the new non-custodial, peer-to-peer marketplace “transforms” Lightning liquidity into a tradable asset on Lightning Pool, allowing users to “buy or sell access to liquidity.”

Lightning Pool opens the door to new Lightning financial products, or “LiFi,” the startup said in a statement.

“Unlike other services on the market, Pool sellers can earn yield on real bitcoin without trusting a third party or losing custody of their funds,” according to the firm. “The yield is earned from buyers on the Pool willing to pay a premium for access to new capital on Lightning without counterparty risk.”

The new marketplace is meant to address a general lack of liquidity on the Lightning Network, which has been an obstacle to its adoption. “Users attempted to solve this problem in a variety of ad hoc ways, such as chat groups and OTC services,” the release states. “Pool provides a solution that enables all of them to participate.”

This post has been updated for clarity.