Builder's Guide
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Welcome to the Builder's Guide to the LND Galaxy!
The Lightning Network
Overview
Payment Channels
The Gossip Network
Pathfinding
Lightning Network Invoices
Making Payments
Liquidity
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Understanding Liquidity
Managing Liquidity on the Lightning Network
How to get inbound capacity on the Lightning Network
LSAT
Taro
Lightning Network Tools
LND
Lightning Terminal
Loop
Pool
Faraday
LAPPs
Guides
Next Steps
Community Resources
Resource List
Lightning Bulb 💡
Glossary
FAQ
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Liquidity
Learn about liquidity, capacity and how to manage the capital in your Lightning node.
In business, liquidity usually refers to the ability to meet short-term obligations. In markets, liquidity refers to the ability to trade assets at a given price. For instance, we might refer to Bitcoin as a liquid asset if we are able to buy and sell large quantities of it without significantly moving the market price.
In the context of this guide, liquidity refers to the ability to move funds, which is an important concept for routing payments in the Lightning Network. To be able to route payments, and collect routing fees, you will want your funds to be as liquid as possible, or otherwise be compensated for the illiquidity.
In these articles, we explore the concept of liquidity in the Lightning Network and describe ways to better manage it.
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Understanding Liquidity
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