Hodl Hodl, a peer-to-peer (P2P) bitcoin exchange, announced today it has added a new trading method for Bitcoin Lightning Network coins. The new option is called “Bitcoin Lightning Network” and it is now active on the exchange. It is tied to the payment type “Cryptocurrency.”
How It Helps
When a user exchanges on-chain bitcoin with bitcoin on the Lightning Network through Hodl Hodl, the party who is sending Lightning Bitcoins is balancing his channels and increasing his inbound liquidity.
The new method allows users to clear up the mess of inbound liquidity and attempts to increase it. Also, sometimes, when people want to move the bitcoins from the Lightning Network, they have to close open channels: the new option on Hodl Hodl also allows for this in an easy way.
How It Works
- A new contract is created and Hodl Hodl generates a unique multisig escrow address for it.
- The seller deposits on-chain bitcoin into the escrow directly from their wallet.
- The buyer sends the seller bitcoins via the Lightning Network.
- Seller releases on-chain bitcoin from the multisig escrow directly to the buyer’s wallet.
When creating an offer, users always have to specify the price. Hodl Hodl currently doesn’t have a “BTCLN” currency in the list to choose from for the offer. Instead, it is advised to put the exchange rate inside the offer description field to be secure (1 BTC = 1 BTCLN).
“If we see demand in exchanging on-chain bitcoins with the bitcoins on the Lightning Network, we will implement a more advanced solution, stay tuned!”
– The Hodl Hodl Team