[Metric] Liquidity Approximated

date
Nov 20, 2021
slug
liquidity-approximated
status
Published
tags
Liquidity Scan
Metrics
summary
Liquidity metrics explained
type
Post
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.
notion image

Balanced Channels

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.

Inbound / Outbound Ratio

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.
 
 

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