Amboss, a lightning data provider, aims to increase the adoption of Bitcoin’s Lightning Network among enterprises with the introduction of the LINER (Lightning Index Rate) index. This index offers businesses valuable insights into the costs associated with setting up Lightning accounts on an annualized basis, as well as the potential yield they can earn by providing liquidity to the Lightning Network. By publicly disclosing this information, Amboss enables businesses to compare these figures with those of traditional financial institutions, such as those on Wall Street.
According to Amboss CEO and co-founder Jesse Shrader, LINER showcases Lightning’s cost advantages over legacy financial institutions, which he believes will attract businesses to the network. The index measures two key metrics: “yield,” which reflects the returns generated by deploying capital to the Lightning Network, and the cost of using Lightning, including the expenses related to opening and closing channels.
Shrader emphasizes that Lightning and Bitcoin, when utilized without intermediaries, eliminate the credit risk associated with traditional financial systems. This low-risk yield can be particularly attractive to large operators seeking to disrupt payment networks while earning a return. Additionally, LINER allows enterprises to compare their payment processing costs with those of traditional processors like Visa, potentially resulting in substantial savings.
LINER draws inspiration from the traditional banking system, aiming to provide a benchmark interest rate similar to LIBOR. Currently, the majority of businesses in the Bitcoin space do not accept Lightning payments. However, the accessibility of data like LINER could potentially incentivize more businesses to transition to Lightning, provided the technology becomes less confusing for them.
