Joint

Enabling Lightning network
for traders and exchanges

Eclair integration manual
Lightning risks and mitigations
Arbitrage API

back to wallet

The goal of this project is to simplify Lightning Network integration for exchanges and also make it a useful tool for Bitcoin traders. Here is a list of concrete proposed solutions:

  1. An Eclair fork with extended API for exchange-specific needs

    Until now no major Lightning implementation offered an API which an exchange could run and fully rely on. What existed could handle normal off-chain sending and receiving fairly well but fell short in non-standard situations such as long pending payments and forced channel closings.

    A recommended Eclair fork addresses all of these issues: no matter what happens to an off-chain payment an exchange always stays fully informed by just listening to relevant API endpoints.

    Eclair has been chosen because it is a high quality and battle tested full Lightning node implementation and also the one I’m most familiar with.

  2. Joint node as a shield from global Lightning network

    LN is not a nice place. The need to keep off-chain funds in a hot wallet is challenging. Managing thousands of customer payment channels is hard. Sending payments across multiple hops has well known risks and enables certain types of attacks.

    The purpose of Joint Lightning node is to eliminate these issues by serving as a one hop relay point between many exchanges. If an exchange wants to minimize its commitment and reduce management costs then it may open a single payment channel with a Joint node to instantly enable off-chain deposits and withdrawals with the rest of Lightning network.

  3. Arbitrage API and Bitcoin Lightning Wallet

    Joint node offers a special Arbitrage API which lets everyone know how much can be sent and received to each of Joint peers right now. This simplifies off-chain transfers between exchanges and reduces friction: Lightning thus becomes a transport vehicle for reliable arbitrage across exchanges.

    Bitcoin Lightning Wallet allows traders to withdraw funds from an exchange and use them for payments nearly instantly and with nearly zero fees. Wallet also supports Arbitrage API so it knows if certain amounts can be delivered off-chain before even attempting a payment.

Feel free to contact me at anton.kumaigorodskiy@outlook.com if you are an exchange looking for Lightning integration.