LN Markets

 Basics

• Started in: 9-2019
• Mainnet release: 11-3-2020
• Based in: France
• A type of Bitcoin derivatives trading platform, one that can only be accessed via the Lightning Network.

History

• From this DeFi Prime interview (6-11-2020):

"After several years of working in financial markets, I found out about Bitcoin while I was living in Hong Kong in 2013. At that time, a Bitcoin ATM opened in my street, I purchased some, did my first Bitcoin transactions, and quickly realized how elegant and efficient Bitcoin was compared to my bank account. That’s how I got into Bitcoin and started to really want to understand it, along with my friend Côme, who was working as an FX trader there.

We came back to France at the same time during summer 2015, and since we shared this passion, we decided to go full time on it, and we set up a lab to explore Bitcoin and blockchain protocols. We were quickly joined by Victor, our CTO. Our quest to get a holistic view of how Bitcoin could reshape finance led us to the idea behind LN Markets."

Audits & Exploits

• Bug bounty program can be found [insert here].

Technology

• Whitepaper can be found [insert here].
• Code can be viewed [insert here].
• Built on: Bitcoin, Lightning Network

How it works

• From this DeFi Prime interview (6-11-2020):

"Trading is done directly from any Lightning wallet and enables super fast access to derivatives markets. Open a position by making a Lightning transaction, close the position and receive the money directly in your wallet. The first product available is a Contract For Difference (CFD) derivative product tracking the BTC-USD price. Margin positions are funded using Lightning Network transactions."

Compliance

• From this DeFi Prime interview (6-11-2020):

"We are working on a regulatory framework that could enable us to raise these limits while maintaining the same trading experience for our users."

Their Other Projects

LN Clear

• From their newsletter (3-3-2021):

"Our next move is the launch of LN Clear, a non-custodial clearing for OTC derivatives for brokers, traders and market makers. LN Clear is a private network of payment channels where trading firms can meet their peers to trade and clear instantly OTC derivatives. LN Clear ensures that the whole process from trade confirmation to final settlement is secure, fast and simple."

Roadmap

• Can be found [Insert link here].
• From this DeFi Prime interview (6-11-2020):

"In the next few months, we will continue the integration of LN Markets to various interfaces such as other Lightning wallets. We will also add more products for trading such as options.

We also closely follow the developments of the RGB protocol that will enable the instant trading of a stablecoin like Tether. We will certainly first use Tether on Lightning to list USD-denominated products."

Usage

• From this DeFi Prime interview (6-11-2020):

"Because the product is still in alpha, the maximum margin per position is limited to 0.01 BTC. Despite the small-trade size, LN Markets users have executed more than 35,000 trades, aggregating over $15 million of volume since last Spring."

• From their newsletter (3-3-2021):

"Overall, we have processed (despite a trading limit of 0.01 BTC):

✨ 150,000 trades

⚡ 100,000 Lightning transactions

💥 $100Mio in Aggregate Trading Volume"

• From their newsletter (29-7-2021):

"$200 million in aggregate trading volume since our launch last March 2020."

Team, Funding, Partnerships, etc.

Team

• Full team can be found [here].
• Romain Rouphael; co-founder
• Victor; CTO

Funding

• From this DeFi Prime interview (6-11-2020):

"Last July, we secured a pre-seed funding round with Bitfinex, Arcane Crypto and Fulgur Ventures, three investors who are strongly committed to the growth of the Lightning Network ecosystem and who will certainly help us accelerate our development and offer new trading experiences to our users.

Our business model is simple. We quote a bid-offer on our platform and charge 0.1% fee per trade. There is no funding rate, no maintenance margin, no complex fee structures."