[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](https://www.notion.so/image/https%3A%2F%2Ffile.notion.so%2Ff%2Ff%2F051879a4-e5c6-48ce-af8e-21eeed2a85f2%2Fcf0adce3-1a02-4e07-b600-57029aa9452b%2FCleanShot_2021-11-20_at_11.28.572x.png%3Fid%3D9eef2298-f9d2-49d2-b996-db57ff162400%26table%3Dblock%26spaceId%3D051879a4-e5c6-48ce-af8e-21eeed2a85f2%26expirationTimestamp%3D1722110400000%26signature%3DGq9KSYpDvLFOImrvBAhNQUh4B3wqg_f5xHW3uIuu_uk?table=block&id=9eef2298-f9d2-49d2-b996-db57ff162400&cache=v2)
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.