⚡ Lightning Lending (Archived)

Status: 🗄️ This project is no longer actively maintained. The repository is kept for reference and educational purposes only. Use at your own risk.

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🧩 Overview

Lightning Lending was an experimental project exploring lending mechanisms directly on the Bitcoin Lightning Network using Nostr and Discreet Log Contracts (DLCs). It enabled opening and closing Lightning channels through programmable contracts and relays, paving the way for non-custodial lending protocols built on Lightning.

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⚙️ How It Worked

1. A lending channel was opened between two peers (A and B) using DLCs and Nostr relays.
2. The protocol defined HTLC and CLTV parameters through DLC agreements.
3. Once the counterparties agreed and paid in sats, the channel was created or settled automatically.
4. Closing followed the same trustless mechanism, ensuring on-chain enforcement when needed.

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🔗 Protocols & Standards

The project was designed to integrate with emerging Nostr Improvement Proposals (NIPs) and Bitcoin Lightning specifications, including experimental work with:

• NIP-88 crates
• DLCs (Discreet Log Contracts) for on-chain enforcement
• Lightning HTLC/CLTV logic

(Originally listed references under “Check here” are no longer active.)

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🧪 Development Notes

Lightning Lending was a proof-of-concept and beta software. It was never intended for production use or large funds. Testing was ongoing with the following roadmap:

• ✅ Basic channel open/close logic
• 🧩 DLC integration (Work in Progress)
• 🧪 More testing and NIP compatibility
• 🔄 Transition from beta
• 🌀 Future: Ark swaps integration

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🧠 Concepts Explored

• Bitcoin Lightning Network
• Nostr protocol
• Non-custodial lending
• DLC-based financial contracts

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👥 Contributors

See the original repository contributors page: 👉 github.com/AreaLayer/Lightning-Lending

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📜 License

MIT License — Free to use, modify, and distribute with attribution.

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