We're excited to announce the launch of Rails, a groundbreaking Liquidity Provider (LP) service designed to help corporate treasuries and Bitcoin custodians earn yield on their Bitcoin while supporting the growth of the Lightning Network!
At Amboss, we've spent over five years building cutting-edge solutions for the Lightning Network, and Rails is our latest step in empowering enterprises to harness Bitcoin's full potential.
Whether you're a custodian managing client funds or a company with a Bitcoin treasury, Rails offers a secure, self-custodial way to generate returns—without the risks of traditional lending or staking. Let's dive into what makes the Rails LP Service a game-changer for Bitcoin holders and the Lightning Network ecosystem.
What Is Rails?
Rails is a self-custodial Bitcoin yield service tailored for enterprises, such as companies with Bitcoin treasuries and custodians. Rails Liquidity Providers (LPs) leverage the Lightning Network to generate returns through payment routing and liquidity leases on our established Magma Marketplace.
Here's how it works: Amboss handles node operations with strictly limited permissions (receive lightning, open channel, close channel), using AI-driven insights derived from over five years of network data. This ensures easy access to yields from network-wide improvements to lightning while keeping your Bitcoin secure and under your control.
Where Does the Yield Come From?
The yield generated for Rails LPs comes from two core activities on the Lightning Network: payment routing and liquidity leases through the Magma Marketplace. Here's a closer look:
- Payment Routing: When you provide liquidity to the Lightning Network as a Rails LP, your Bitcoin helps facilitate transactions across the network. Every time a payment is routed through your node, you earn a small fee. These fees accumulate over time, contributing to your overall yield.
- Liquidity Leases on Magma: The Magma Marketplace connects node operators like you with others needing liquidity to open or maintain payment channels. By leasing your liquidity, you earn additional returns while supporting the network's dynamic efficiency. Over the past four years, we've seen yields from these activities on Magma range between 1-4% APY.
This yield model not only benefits you as a liquidity provider but also strengthens the Lightning Network by ensuring there's ample liquidity for fast, low-cost Bitcoin payments.
How Rails Supports the Lightning Network
Beyond generating yield for your Bitcoin, Rails plays a vital role in advancing the Lightning Network as a whole. As Bitcoin continues its journey from a store of value to a medium of exchange, the Lightning Network's ability to handle high transaction volumes efficiently is crucial. Rails contributes in several key ways:
- Boosting Network Liquidity: By providing liquidity as a Rails LP, you're directly increasing the capacity of the Lightning Network to process payments. This reduces bottlenecks, lowers fees, and improves transaction success rates for everyone on the network.
- Enhancing Scalability: More liquidity means the Lightning Network can scale to support a growing number of users and use cases—from merchants accepting Bitcoin at POS to exchanges settling transactions instantly. Your participation helps make Bitcoin a viable payment solution at scale.
- Promoting Decentralization: Rails operates on a non-custodial model, aligning with Bitcoin's ethos of sovereignty. By enabling more enterprises to run nodes and provide liquidity, Rails LPsfoster a more decentralized and resilient network, reducing reliance on centralized intermediaries.
- Driving Innovation with AI: Amboss's AI-driven insights optimize payment routes across the network, ensuring effective use of liquidity. This not only maximizes your returns but also improves the overall performance of the Lightning Network, benefiting all participants.
In short, every Bitcoin you commit as a Rails LP helps build a stronger, more efficient Lightning Network, paving the way for Bitcoin's widespread adoption as a global payment system.
Why Become a Rails LP?
Rails Liquidity Providing isn't just about earning yield—it's about doing so securely and responsibly while contributing to the Bitcoin ecosystem. Here's why it's the right choice:
- Self-Custodial Security: You maintain full control of your Bitcoin at all times, avoiding the risks associated with crypto lending platforms.
- AI-Powered Efficiency: Our machine learning algorithms optimize payment path creation, ensuring your liquidity is used effectively to maximize returns.
- Enterprise-Grade Support: Tailored for custodians and corporate treasuries, Rails can enhance your existing operations, positioning you to benefit from Bitcoin payments adoption.
Get Started with Rails Today
Ready to earn yield on your Bitcoin while supporting the Lightning Network? Rails is now live! Visit us here to learn more and get started.
Have questions or want to connect? Contact us here — we'd love to hear from you. Let's work together to make Bitcoin payments faster, cheaper, and more accessible for everyone!