[Metric] Liquidity Approximated
Nov 20, 2021
Liquidity metrics explained
Liquidity Approximated consists of two metrics that estimate how well a node maintains its liquidity. During a liquidity scan, LnRouter assesses a subset of node channels with 500,000 sat test payments once monthly.
Balanced channels are the percentage of channels that can route 500,000 sat in both directions. A good routing node has many balanced channels, reducing payment attempt failures and increasing payment speed and success.
This ratio approximates a node's inbound capacity to its outbound capacity. Depending on the node, this ratio can be used to signal for payment direction and untapped liquidity potential.
However, take this value with a grain of salt. LnRouter does not know the actual capacity ratio of a node, and it only derives this ratio from a minimal dataset based on the 500,000 sat test payments.