P2P Payments with Lightning Channels

The Jedi coders in the UTXO stack team that are developing a p2p payment system using hybrid Lightning channels are proud to announce the UTXOStack's Litepaper, the Decentralized Liquidity Staking Layer for Lightning Network

Head on here: https://utxostack.network/whitepaper.pdf

Core Infrastructure: Hybrid LN, DLSP, Swapping Nodes, Wallet & Payment SDK;

Featuring: Use Cases, Tokenomics, P2P Economy & Web5 Vision.

Next-gen stablecoin payment for Lightning mass adoption, powered by UTXO Stack.

1/ Why LN?

The Lightning Network is a breakthrough in crypto payment systems by enabling near-instant transactions, scalability through parallel channels, privacy via off-chain operations, and minimal transaction fees compared to traditional

blockchain transactions.

2/ UTXO Stack Infrastructure

As the liquidity staking layer for the Lightning Network, UTXO Stack has introduced a comprehensive infrastructure designed to enhance the network's liquidity. This infrastructure includes a hybrid Lightning Network, the Decentralized Liquidity Staking Pool (DLSP), swapping nodes, a wallet, and a peer-to-peer (P2P) payment SDK.

However, LN faces several critical challenges: no stablecoins on LN, liquidity issues, and onboarding complexity.

2.1/ Hybrid Lightning Network(Hybrid LN)

With integration with CKB Fiber Network, UTXO Stack can upgrade LN to Hybrid LN.

Assets based on the RGB++ protocol can be issued on the Bitcoin chain, bridgeless leap to UTXO chains, eg CKB. In Hybrid LN, Swapping nodes act like edge nodes, enabling trustless cross-asset exchanges (BTC/stablecoins/CKB) with oracle price feeds.

2.2/ DLSP

DLSP has 3 key innovations:

1)Liquid Staking Derivatives(LSD): allow users to earn yields while providing liquidity;

2) Automated liquidity management: functions like an AMM for more efficient resource allocation;

3)Zero-cost channel opening: removes entry barriers for LN users.

These features address the fundamental limitations of the LN, creating a more accessible and scalable payment network.

2.3/ Swapping Nodes, Wallet & Payment SDK

Decentralized swapping nodes enabling bridgeless cross-asset exchanges between BTC, stablecoins, CKB, and ccBTC; JoyID wallet providing secure Passkey-based access and staking capabilities; and a P2P Payment SDK transforming Web2 app to support P2P payments.

With these components, UTXO Stack enhances the LN utility through seamless stablecoin integration and robust liquidity management.

3/ Use cases

DLSPs can expand the Lightning Network's utility beyond basic payment channels:

- Liquidity Lending for Lightning Service Providers;

- Decentralized Swaps Among BTC, wBTC, and Stablecoins;

- Lightning Network Payment Accounts for AI Agents;

- Composability with on-chain DeFi stack.

4/ Tokenomics

The UTXO Stack utility token, issued via the RGB++ protocol on Bitcoin, served as early incentives, liquidity collateral, inactivity penalty, voting, community governance and revenue sharing. This model ensures sustainable development while balancing incentives for all participants.

5/ Decentralised P2P

UTXO Stack envisions a decentralized P2P economy powered by robust off-chain infrastructure.

Get ready for our upcoming TGE, marking the first-ever airdrop in the Lightning Network ecosystem - a significant milestone for the entire LN community.

6/ Get more ideas on what UTXO Stack is building and roadmap, visit:

utxostack.network

UTXO Stack

Unlock the future of #PayFi with Lightning Network