During The Bitcoin Conference, an event related to Bitcoin (BTC) and the cryptocurrency ecosystem currently taking place in Las Vegas, USA, developer Miles Suter announced that his “c=” routing node on the Bitcoin Lightning Network (LN) generates a 9.7% annual return on its locked BTC liquidity, estimated at “around $10 million.”

That return, based on the utility of Bitcoin payments, exceedns what traditional banks or even many decentralized finance (DeFi) platforms offer, without the need to give up custody or resort to complex decentralized applications.

How does the Lightning Network generate this performance?

The Lightning Network is a second layer (L2) solution for Bitcoin that enables fast, low-cost transactions off the main chain while maintaining network security. Routing nodes, like c=, facilitate these transactions by providing liquidity and charging small fees for each transaction they process.

According to a post by Ryan Gentry, the developer of this second-layer solution, on May 28, of the 184 BTC of public capacity managed by the node, approximately half or about 92 BTC is producing an annualized yield of 9.7% APR, a ratio that reflects annualized profit.

For his part, Nick Slaney, technical lead and member of the team behind the c= node on the Lightning Network, welcomed Suter's announcement, describing it as "unprecedented.”

An LN node runner achieves nearly 10% ROI on its “c=” routing node. Source: Nick Slaney/ X.

In turn, following this fact, Peter Todd, a renowned Bitcoin developer, stated that “The constant claims that no one uses Lightning are ridiculous.”

A secure alternative to DeFi and banks

Unlike DeFi platforms, which typically require users to cede control of their funds to smart contracts or face security risks, the Lightning Network model allows node operators to retain custody of their bitcoin. This eliminates intermediaries and potentially reduces exposure to hacks or scams.

This case demonstrates how Bitcoin, beyond being a speculative asset, can generate economic utility through its infrastructure. The Lightning Network not only improves the network's scalability but also offers users a way to earn returns without having to delegate custody of their BTC, reinforcing Bitcoin's potential as a decentralized and efficient financial tool.