Lightning Service Provider (LSP) Specification

The BLGV LSP follows industry standards while providing enhanced services for enterprise Lightning Network integration.

⚡ LSP Overview

Service Categories

• Channel Management: Automated channel opening and liquidity provision
• Payment Routing: Optimized payment path finding and forwarding
• Liquidity Services: Just-in-time liquidity for payments
• Node Management: Hosted Lightning node services

BLGV LSP Features

interface LSPService {
  channelOpening: ChannelOpeningService;
  liquidityProvision: LiquidityService;
  paymentRouting: RoutingService;
  nodeHosting: HostedNodeService;
  monitoring: MonitoringService;
}

🔧 Channel Opening Service

Automated Channel Creation

interface ChannelRequest {
  clientPubkey: string;
  channelSize: number;
  pushAmount?: number;
  feeRate?: number;
  isPrivate?: boolean;
}

class LSPChannelService {
  async openChannel(request: ChannelRequest): Promise<ChannelResponse> {
    // Validate client requirements
    const validation = await this.validateChannelRequest(request);
    if (!validation.valid) {
      throw new Error(validation.error);
    }
    
    // Open channel with appropriate parameters
    const channel = await this.lightning.openChannel({
      nodePubkey: request.clientPubkey,
      localFundingAmount: request.channelSize,
      pushSat: request.pushAmount || 0,
      private: request.isPrivate || false,
      satPerByte: request.feeRate || this.getOptimalFeeRate()
    });
    
    return {
      channelId: channel.channelId,
      fundingTxid: channel.fundingTxid,
      capacity: request.channelSize,
      status: 'pending',
      estimatedConfirmation: this.estimateConfirmationTime(request.feeRate)
    };
  }
}

💧 Liquidity Services

Just-in-Time Liquidity

interface LiquidityRequest {
  amount: number;
  duration: number; // milliseconds
  maxFeeRate: number; // ppm
}

class JITLiquidityService {
  async provideLiquidity(request: LiquidityRequest): Promise<LiquidityResponse> {
    // Check available liquidity
    const availableLiquidity = await this.getAvailableLiquidity();
    
    if (availableLiquidity < request.amount) {
      // Request liquidity from other LSPs or exchanges
      await this.requestExternalLiquidity(request.amount);
    }
    
    // Allocate liquidity for specified duration
    const allocation = await this.allocateLiquidity({
      amount: request.amount,
      duration: request.duration,
      reservationId: this.generateReservationId()
    });
    
    return {
      allocated: true,
      reservationId: allocation.reservationId,
      expiresAt: Date.now() + request.duration,
      feeRate: this.calculateLiquidityFee(request)
    };
  }
}

🗂️ Node Hosting Services

Hosted Lightning Nodes

interface HostedNodeConfig {
  alias: string;
  color: string;
  features: NodeFeatures;
  channels: ChannelConfig[];
  autopilot: AutopilotConfig;
}

class HostedNodeService {
  async createHostedNode(config: HostedNodeConfig): Promise<HostedNode> {
    // Create isolated Lightning node instance
    const nodeInstance = await this.nodeOrchestrator.createNode({
      alias: config.alias,
      color: config.color,
      features: config.features
    });
    
    // Configure initial channels
    for (const channelConfig of config.channels) {
      await this.openInitialChannel(nodeInstance, channelConfig);
    }
    
    // Enable autopilot if requested
    if (config.autopilot.enabled) {
      await this.enableAutopilot(nodeInstance, config.autopilot);
    }
    
    return {
      nodeId: nodeInstance.nodeId,
      pubkey: nodeInstance.pubkey,
      endpoint: `https://lsp.blgvbtc.com/nodes/${nodeInstance.nodeId}`,
      macaroon: await this.generateClientMacaroon(nodeInstance),
      tlsCert: nodeInstance.tlsCert
    };
  }
}

📊 Monitoring & Analytics

Real-time Node Monitoring

interface NodeMetrics {
  channelCount: number;
  totalCapacity: number;
  routingRevenue: number;
  successRate: number;
  uptime: number;
  forwardingEvents: ForwardingEvent[];
}

class LSPMonitoringService {
  async getNodeMetrics(nodeId: string): Promise<NodeMetrics> {
    const node = await this.getHostedNode(nodeId);
    const channels = await node.listChannels();
    const payments = await node.listPayments();
    const forwards = await node.getForwardingHistory();
    
    return {
      channelCount: channels.length,
      totalCapacity: channels.reduce((sum, ch) => sum + ch.capacity, 0),
      routingRevenue: forwards.reduce((sum, fwd) => sum + fwd.fee, 0),
      successRate: this.calculateSuccessRate(payments),
      uptime: await this.calculateUptime(node),
      forwardingEvents: forwards
    };
  }
}

🔐 Authentication & Security

LSP API Authentication

interface LSPCredentials {
  apiKey: string;
  signature: string;
  timestamp: number;
  nonce: string;
}

class LSPAuthService {
  async authenticateRequest(credentials: LSPCredentials): Promise<boolean> {
    // Verify timestamp is recent (within 5 minutes)
    const now = Date.now();
    if (Math.abs(now - credentials.timestamp) > 300000) {
      return false;
    }
    
    // Verify signature
    const message = `${credentials.timestamp}${credentials.nonce}`;
    const expectedSignature = this.generateHMAC(message, credentials.apiKey);
    
    return credentials.signature === expectedSignature;
  }
}

💰 Fee Structure

LSP Pricing Model

interface LSPFees {
  channelOpening: {
    baseFee: number;      // Fixed fee per channel
    capacityFee: number;  // Fee per satoshi capacity
  };
  liquidity: {
    reservationFee: number; // Fee for liquidity reservation
    utilizationFee: number; // Fee based on actual usage
  };
  routing: {
    baseFee: number;      // Base routing fee
    feeRate: number;      // Fee rate per payment
  };
  hosting: {
    monthlyFee: number;   // Monthly hosting fee
    transactionFee: number; // Per-transaction fee
  };
}

const blgvLSPFees: LSPFees = {
  channelOpening: {
    baseFee: 1000,        // 1000 sats base fee
    capacityFee: 0.001    // 0.1% of capacity
  },
  liquidity: {
    reservationFee: 100,  // 100 sats per reservation
    utilizationFee: 500   // 500 ppm utilization
  },
  routing: {
    baseFee: 1000,        // 1000 msat base fee
    feeRate: 100          // 100 ppm
  },
  hosting: {
    monthlyFee: 50000,    // 50k sats per month
    transactionFee: 100   // 100 sats per transaction
  }
};

🔄 Integration Examples

Mobile Wallet Integration

import { LSPClient } from '@blgv/lsp-client';

const lspClient = new LSPClient({
  endpoint: 'https://lsp.blgvbtc.com',
  apiKey: 'your-api-key'
});

// Request channel for mobile wallet
const channelRequest = await lspClient.requestChannel({
  clientPubkey: mobileWallet.pubkey,
  channelSize: 1000000, // 0.01 BTC
  pushAmount: 100000    // 0.001 BTC pushed to client
});

// Monitor channel status
const channelStatus = await lspClient.getChannelStatus(channelRequest.channelId);

Exchange Integration

// Request just-in-time liquidity for large payment
const liquidityRequest = await lspClient.requestLiquidity({
  amount: 10000000,     // 0.1 BTC
  duration: 3600000,    // 1 hour
  maxFeeRate: 1000      // 1000 ppm max fee
});

// Execute payment with reserved liquidity
const payment = await lspClient.sendPayment({
  invoice: lightningInvoice,
  reservationId: liquidityRequest.reservationId
});

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Need help? Check our Lightning LSP Platform or Lightning Protocol documentation.