The LNFI Network, the Defi platform of Bitcoin’s Lightning Network, integrates the RGB protocol and enables scalable and programmable assets with Bitcoin. Announcing with the launch of RGB’s MainNet, it allows developers and users to trade and manage RGB-based assets using the LNFI infrastructure.
Darius, co-founder of the LNFI Network, described the platform as “a next-generation peer-to-peer financial infrastructure built to enhance Bitcoin native assets that can be solved in Lightning.” He said LNFI, which has been operating on Mainnet since late 2023, has been processing daily trading volumes of $20 million in order book exchanges.
Developed by the LNP/BP Standards Association, RGB uses off-chain smart contracts compatible with Lightning to support complex financial apps without straining the bitcoin blockchain. “RGB gives developers the power of off-chain smart contracts,” said Maxim Orlovsky, RGB lead engineer. LNFI supports Lightning compatibility standards such as Taproot Assets, RGB, LRC20, and ARK, and is suitable for traders, node operators, miners and venture companies.
LNFI leverages NoStr, a decentralized protocol, to increase transparency and decentralize Orderbooks, a common bottleneck for Atomic Swap exchanges. All user actions – deposits, withdrawals, or orders – are sent as encrypted Nostreve events. “Nostr’s encryption and transparency prevents order tampering and front-running,” Darius said. Orders are processed by LNFI’s NoSTR client and posted to a distributed order book across the relay, ensuring scalability and reliability with two currently operating relays. This setup prevents operational liquidation, unlike central exchanges where fake liquidity can distort the market, as it is traceable as “all trades are secured,” explained Darius.
The integration coincides with RGB momentum and will be increased by Tether’s planned USD protocol issue, processing more than 80% of Stablecoin volumes in circulation of $150 billion. “This provides tools for RGB Projects Tool to use in the real world, including large volumes of transactions,” said Luke, co-founder of LNFI. LNFI jobs are supported by Darius Per Darius UTXO Management, CMS Holdings, and Wolf NYC (NYDIG).
For independent transactions, LNFI plans to implement settlements through settlements, using off-chain transactions for immediate finality within the lightning channel and via the ARK protocol, Darius pointed out. For more information, please visit lnfi.network.
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Source: https://bitcoinmagazine.com/news/lnfi-network-integrates-rgb-protocol-to-enhance-lightning-network
