Lightning Labs’ Foray to DeFi – The Lightning Pool


Lightning Labs, Bitcoin Lightning Network’s software development company, just announced the launching of a particular marketplace for its users to lease liquidity to use as payments within the second-layer network.

It calls it the “Lightning Pool.” It is advertised as a non-custodial P2P marketplace wherein Lightning Network users may lend out BTC in various payment channels in return for substantial yields – much like DeFi protocols. Basically, Lightning Labs developed a brand new – and theoretically much easier – money-making option within the Lightning Network.

As per Lightning Labs, node operators and businesses can freely use Lightning Pool to reorganize their channel management methods. Lightning Labs noted that they may now focus more on attracting customers instead of finding a way to access liquidity. Furthermore, Lightning Labs also stated that this development would render the network more secure, reliable, and efficient for all parties involved.

Reports dictate that Lightning Labs refer to it as “LiFi,” a wordplay on the surging DeFi sector and because of its many similar properties.  It states that Lightning Pool sellers can amass substantial yields using real Bitcoin without worrying for any third party and lost funds. It adds that the yield is then earned from Lightning Pool buyers that are willing to pay premium access to Lightning Network’s new capital without counterparty hazards.

Lightning Labs then reinforced its focus on caution and user-first mentality by limiting the initial max account size to just 10 BTC. The firm says that Lightning Pool is still very early and is admittedly not as established as DeFi just yet, thus, its decision to drastically limit user deposits at least for now.


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