Ambitious! My first concern is that this fragments liquidity even further. 5 mix depths is already restrictive, having (long lived) LN channels is somewhat of a counter-incentive.
The problem of over...
Yeah... It does.
I do hope that a more active ecosystem also attracts more liquidity.
The channels don't need to be long lived. Makers can use them as inputs for CJs (cooperative close directly into a CJ). So it's not really locked liquidity as long as the peer is online. They can also close them, ideally after the balance has shifted.
The problem I see with the automatic sweep and many other similar ideas, is that they lack the incentive to do so. They would be paying fees for something that's good for future takers privacy, but only costs them money. And takers don't know the "quality" of makers UTXOs. Apart from that, they would leak a lot of info by consolidating so many UTXOs at once...
The incentives are a bit tricky. I thought that the taker "forcing" them to get change as channel opens, or at least having takers prefer makers that do support that, is a nice "trick". Then they can do whatever they want with it. Ideally, being swap providers, lnproxy providers, and being able to just use that shared UTXO as their CJ inputs, is enough of a motivation to keep it (instead of paying fees out of their own pocket to close the channel as soon as they get it).
I do hope that a more active ecosystem also attracts more liquidity.
The channels don't need to be long lived. Makers can use them as inputs for CJs (cooperative close directly into a CJ). So it's not really locked liquidity as long as the peer is online. They can also close them, ideally after the balance has shifted.
The problem I see with the automatic sweep and many other similar ideas, is that they lack the incentive to do so. They would be paying fees for something that's good for future takers privacy, but only costs them money. And takers don't know the "quality" of makers UTXOs. Apart from that, they would leak a lot of info by consolidating so many UTXOs at once...
The incentives are a bit tricky. I thought that the taker "forcing" them to get change as channel opens, or at least having takers prefer makers that do support that, is a nice "trick". Then they can do whatever they want with it. Ideally, being swap providers, lnproxy providers, and being able to just use that shared UTXO as their CJ inputs, is enough of a motivation to keep it (instead of paying fees out of their own pocket to close the channel as soon as they get it).
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