Amboss is a data analytics company for the Bitcoin Lightning Network. They have introduced LINER, an innovative index that measures bitcoin returns in the Lightning Network. It also highlights its potential as a low-risk enterprise yield.
A press release sent to Bitcoin Magazine states that LINER is a benchmark rate of interest for bitcoin, without credit risk. It’s similar to LIBOR, the London Interbank Offered Rate, in traditional finance.
The index is designed to offer an alternative for enterprises looking to gain exposure to bitcoin without the credit risks associated with CeFi yield platform.
Jesse Shrader is the co-founder and CEO at Amboss. He said, ‘By communicating the real yield rates of bitcoin held on the LN enterprises will realize the strategic mistake of trusting CeFi’s yield platforms, while capturing benefits of payment networks disruption which has been decades in the making.
The Bitcoin Layer creator Nik Bhatia praised LINER for being a reference rate that is unique and derived from Lightning Network. This will help to establish unmanipulated money markets, independent of a centralized authority.
Allen Farrington is a Bitcoin investor and writer. He acknowledged the importance of a rate of reference like LINER in assessing the cost of capital. The Lightning Network has grown to be a self-sustaining ecosystem that can serve both enterprise and retail needs.
Amboss operates Magma – a marketplace that facilitates the buying and sale of Lightning channels. This allows bitcoin holders to earn BTC by opening Lightning channels for various destinations. Magma, which is a self-custodial way to hold bitcoins, allows for novel bitcoin yields without any custodial risks. It avoids the pitfalls of failed CeFi platforms such as Celsius and BlockFi.
LINER is comprised of two metrics that provide valuable insight into the lightning market: LINER Cost, and LINER yield. These metrics enable comparisons between LINER Costs and traditional payment cards fees. This allows large bitcoin holders make informed decisions about their bitcoin holdings.
Jonathan Bier, a writer and investor, has noted the future potential significance of the LINER Index as a benchmark rate for Bitcoin investment decisions. Portfolio managers, investors, and businesses can use LINER to make better decisions.
Amboss hopes to promote enterprise adoption of Lightning Network through LINER by demonstrating cost savings and low risk yield potential that Lightning-enabled payments infrastructure offers. The index is a great way for large bitcoin holders who want to maximize their returns and minimize risk, to use self-custodial methods. For more information on Amboss, LINER and the overview please visit our website.