Magma

Magma is a liquidity marketplace for the bitcoin lightning network. Users can buy or sell channels from other participants in the magma marketplace. Magma is intended to be simple to use for any lightning node operator without restrictions on the implementation (LND, CLN, Eclair, etc.).

Magma uses “HODL” invoices to create simple smart contracts. This technology enables channel sellers to receive lightning payments only if they open the channel that they agreed to open within a very short timeframe. Additionally, this technology allows Magma to facilitate the transaction without ever taking custody of user funds. Using HODL invoices comes with a few tradeoffs, but the result is that channels need to be opened and confirmed quickly, making this a very responsive market to liquidity needs.

Notifications about the status of Magma offers and orders are provided through @theambossbot on telegram.

Magma Order Flow Diagram

This is how the flow of statuses works in a Magma order.