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https://blog.cakewallet.com/lightning-is-finally-here/

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Devil is in the details. They're using something called Spark under the hood. It's a statechain that can interoperate w/ Lightning, it's NOT LIGHTNING. https://docs.spark.money/learn/faq Now you can elect to implement/ship this, it's kind of shit system w/ trust assumptions, that's fine, that's your lack of care. BUT they DECEPTIVELY advertise it AS LIGHTNING whereas IT'S NOT LIGHTNING. It has very different trust assumptions. Here's a summary version: https://www.bitcoinlayers.org/ This false marketing move casts serious doubts over the honesty of Cake. ALMOST NOBODY TALKS ABOUT THE DETAILS!!! 0.15% in, 0.25% out. Real Lightning has no entry/exit fees. This thing is only cosplaying as Lightning. https://docs.spark.money/learn/faq

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_v_n_t_r_b_l_k_14d ago

so its kinda like ecash?

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Saberhagen The Nameless14d ago

Thanks for the info Soul Do you know if these extra fees go to Spark even if you're using Cake Wallets implementation? If not, does Cake charge? Still, I could see how the fees and trust assumptions might be worth it for some users to avoid certain UX aspects of using Lightning directly when they're forced to use it. I've seen others like @43fabde6…9114c06a mention how the Spark entity can collude with a user to steal from another. The privacy also doesnt seem very great atm. Though to be fair it seems better than on-chain Bitcoin or default Spark where your transactions are fully public. Either way I wasn't making any recommendation with this just presenting a new development and people can delve further into the details themselves

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Soul Reaver12d ago

To best of my knowledge/understanding: Yes, those extra fees (0.15% in, 0.25% out) go directly to the Spark Service Provider (SSP), even when you are using Cake Wallet's implementation. Here is exactly why: When you use Cake Wallet's new "Lightning" setup, you aren't actually transacting directly on the Lightning Network. You are operating on the Spark statechain (integrated via the Breez SDK). Anytime you want to send or receive from an actual Lightning node, an SSP has to actively bridge the funds between the Spark statechain and the real Lightning Network. That 0.15% and 0.25% is the toll the SSP charges to act as that bridge. To answer your second question: No, Cake Wallet does not charge an additional fee on top of this. Cake does not slap an extra premium on basic peer-to-peer sends. Their business model revolves around making money from their in-app token swaps, fiat on/off ramps, and Cake Pay services. So while Cake isn't double-dipping on the transaction itself, you are still subjected to Spark's bridging fees just to interact with the broader ACTUAL/REAL Lightning Network—which definitely undercuts the "near-zero fee" ethos of running a real Lightning node.