September’s in the books, and with it comes a wave of updates! From major leaps in the Lithium protocol to key backend and frontend improvements for the Web DEX, our dev team has been hard at work bringing our dream closer to reality. While we’ve made significant progress, we’ve also made some tough but important decisions.

Buckle up for the latest, and as always, we are glad to be sharing this journey with you!

Lithium Multi-Path Payments

Exciting updates to the Lithium protocol: September saw major progress in the development of Multi-Path Payments (MPP)! But what is MPP? In short, it’s a system that breaks a single large transaction into smaller parts, sending them through various routes across the network all at the same time. In doing so, the strain on individual state channels in the network can be reduced, and the liquidity and capacity of the network can be used more efficiently. Think of it as using multiple lanes instead of crowding one single lane on a road, easing traffic and reducing strain in this individual road lane.

Why does this matter? With MPP, Lithium can now split payments across different channels simultaneously and ensure that all payments reach their intended destination. MMPs are always atomic, meaning they either succeed or fail altogether. Although the Hydranet Network is not a multi-node network as of yet, the MMP functionality is especially useful for our swap service, where traders often fill multiple orders at once. Rather than signing and completing each order one by one, MPP lets them all happen together, creating a smooth, efficient execution.

Next on the roadmap is integrating MPP into Lithium’s pathfinding algorithm, meaning it’ll automatically find the best, multi-path route for each transaction. Once in place, this addition will significantly boost Lithium’s efficiency within the Hydranet Network, but that’s a work for after the mainnet release of the Wallet and DEX.

Oh, and by the way, Lithium V2 is now live! It’s been thoroughly tested by our team and closed testnet participants. It’s now available to everyone. If you haven’t tried it yet, dive in and let us know what you think!

• Wallet
• Test guide

Web DEX Backend Progress

On the backend side, we’ve been hard at work with updates and fixes. Channel backup services, code refactoring, and the latest library upgrades to BDK (Bitcoin Dev Kit) and LDK (Lightning Dev Kit) were all in the mix this month. The state channel backup service is back in focus, making it easier to store critical transaction data for easy recovery. Our goal? Security, reliability, and user experience.

Upgrading BDK and LDK brought some extra challenges due to breaking changes (a pretty standard part of software updates!). But this prompted a major backend code overhaul that will make future testing and debugging a lot easier. Every improvement now is paving the way for smoother updates later.

Web DEX Frontend Enhancements

On the frontend, September brought exciting updates to the Channel Rental Manager. The design is finalized, it’s connected to the backend, and released to the closed testnet group. Thanks to user feedback, we’ve caught and fixed some bugs, polishing the experience along the way. Plus, minor UX tweaks are underway to iron out those little hiccups, like that pesky input bug in the payment process.

Orderbook and Swap Service Development

The DEX functionality is developing with every passing month, and September was no exception. The major highlight of this month is the development of the swap service, i.e., the service that connects trading peers once a match is found and sets them up for a successful trade. The work of this service started early this month and has already made great progress. We’ve also made the fee system more flexible in the orderbook, allowing configurable fees for both makers and takers, which is ideal for adapting to whatever fee structure our growth demands. We furthermore rolled out a couple of new invoice decoding functions for the swap functionality.

Rescheduling WebWallet mainnet release

If you were eagerly awaiting the WebWallet mainnet release, you’re not alone! We’d planned for a launch around this time, but after some deep discussion, we decided to hit pause. Security is our top priority, and we want to make absolutely sure that the mainnet is rock-solid before going live. Remember, we are truly unique in this space, pushing the boundaries of what’s possible with cutting-edge technology. The last thing we want is to rush anything and risk compromising security or user experience. Building something groundbreaking takes time, and we’re working with tech that’s never been implemented in this way before.

So, what’s still in the works? Right now, we’re focusing on some critical features that need a bit more time in the oven:

• Cloud-Based Channel Backups: Imagine being able to access your channels across multiple devices effortlessly. That’s what we’re working on — a seamless, multi-device experience without losing track of your transactions, even if you were to lose track of your device.
• Watchtowers: Watchtowers will constantly keep an eye on your channel balances, protecting them from potential threats, even if you’re offline.
• Lithium audit: Since Lithium is a brand-new contract, a thorough audit is essential to ensure user security before it goes live on mainnet.

These aren’t just nice-to-haves; they’re essential for creating a secure, user-friendly, and future-proof wallet. We know the wait can be tough, but we are committed to delivering a product that isn’t just functional, but a game-changer in the decentralized finance world — and for that, security is key!