The Stroom Network presents an interesting proposition: staking your bitcoin on the Lightning network, and earning yield from the transaction fees that routing nodes are collecting. To better explain how this system works, Slava and Ros join the show!

Time stamps:

00:01:17 - Introduction to Bitcoin Takeover Podcast Season 16 Episode 54

00:01:23 - Welcoming Slava Zhygulin and Ros from Stroom Network

00:01:52 - Overview of Stroom Network: Liquid staking on Lightning Network

00:02:38 - How Stroom works: Depositing BTC for yield via transaction routing

00:03:55 - Liquid token as receipt for deposited BTC

00:04:21 - Addressing Bitcoin purists' concerns about staking and yield

00:05:32 - Token issuance on Ethereum, redeemable 1:1 with BTC

00:06:37 - Custodian role: Fortuna Custody for secure setup

00:06:49 - User process: Staking BTC, receiving ST BTC token

00:09:06 - Stroom's Lightning node on 1ml.com: 180 BTC capacity, top rankings

00:10:06 - Background: Work with Lightning since 2016, ex-Bitfury team

00:11:15 - Lightning Network capacity: ~5,000 BTC total

00:12:18 - Bullish on Lightning: 4x payment volume growth per River Finance reports

00:14:33 - Lightning's infinite scalability vs. blockchains like Solana

00:16:20 - Node metrics: 127 BTC routed, 65,000 transactions in two months

00:18:00 - Yield source: Real economic activity from routing fees

00:19:06 - Unique BTC yield without proof-of-stake risks

00:19:48 - Comparison to other Bitcoin L2s like Citrea and Alpen Labs

00:22:57 - Custodian details: Fortuna, EU-compliant in Ireland

00:23:37 - Fee structure: 5-10% retained, rest to stakers (bootstrapped at 20%)

00:24:53 - Revenue share model based on routed volumes

00:25:43 - Timeline: Two years of development, challenges with Taproot channels

00:29:04 - Bitcoin covenants: Unlikely to eliminate custodians

00:30:36 - Competitors: Kraken (1% yield), Starkware (2%), Babylon

00:33:06 - Stroom's edge: Yield from real Lightning activity, no token incentives

00:35:24 - Node stats: 65,000 transactions, ~$15M volume

00:36:59 - Average fees: ~0.1%, varies by channel and size

00:38:15 - Profitability estimates: $7,000/month example calculation

00:41:35 - Block (Jack Dorsey's company): 10% APY on $10M node

00:43:32 - Node age impact: Older nodes like Alex Bosworth's attract more traffic

00:45:33 - Encouraging channels: Reliability and high liquidity

00:46:53 - Boosting Lightning adoption: Stablecoins via Taproot Assets, RGB, Lightspark

00:50:27 - Sponsors: Layer 2 Labs, Sideshift.ai, NoOnes.com, Bitcoin.com News

00:53:13 - Node connections: NiceHash, OKX, Kraken, Binance, Wallet of Satoshi

00:56:45 - Fee policy: Dynamic algorithms, 0.1-2 basis points

00:59:36 - Future if Lightning replaced: Bitcoin L2s, BTVM, crosschain swaps

01:00:07 - Long-term vision: Proof-of-stake L2s like Botanics, BTM operators

01:03:07 - Team: Nick Sterningard as advisor

01:03:54 - Challenges in Lightning businesses: LSPs like Phoenix, Breez

01:05:43 - Lightning quirks: Buggy experience, on-chain alternatives

01:08:07 - Personal Lightning nodes: Rings of fire, Tor issues

01:09:58 - Stablecoins vs. Bitcoin: Tether article in Bitcoin Magazine

01:11:28 - Dollar dominance: 85% global payments, slow shift to Bitcoin

01:13:14 - Adoption decline: Past merchants like Dell, Microsoft vs. today

01:15:43 - Yield transparency: Real activity vs. BlockFi/Celsius rehypothecation

01:17:36 - Decentralized future: Federation for BTC management

01:18:53 - Ultimate purpose: Support Bitcoin economy beyond holding

01:19:59 - Community: 10,000 followers, 8-person tech team, 50/50 retail/funds

01:22:17 - 10-year vision: Largest BTC liquidity management community

01:23:53 - Personal payments: Bitcoin/Lightning preferred, stablecoins common

01:25:31 - Magic wand: Faster Bitcoin blocks (1-minute intervals)

01:27:54 - Tokenizing BTC: WBTC on Ethereum (100k+ BTC) vs. Lightning

01:29:43 - Paths forward: Improve Bitcoin or bridge to other networks like drivechains

01:30:59 - Learn more: Stroom.net, Twitter, Telegram, Discord

01:32:51 - Closing thoughts: Bright Bitcoin future, open financial inclusion

01:36:07 - Thanks and sign-off