clboss/Boss/Mod/PeerJudge/README.md

This module handles peer judgment and whether to close on a peer or not.

Specifically, the algorithm implemented in Boss::Mod::PeerJudge::Algo goes this way:

• First, we determine a "reasonable average expected rate of earnings".
  • Average: Specifically, we use a weighted median. We weight it according to channel size.
  • Reasonable: We get this data from the channels we currently have. We sample from a specific recent past timeframe.
  • Rate of earnings: We get all earned fees (incoming and outgoing) and divide by the size of the channel.
  • More specifically, we get the rate-of-earnings of all channels, sort the channels according to rate-of-earnings, then get the weighted median of the channels.
• All channels whose rate of earnings is lower than the median are subject to possible closure. These are put in a set of candidates-to-close.
• Next, we determine the cost-of-reopen.
  • The cost of reopening channels is equal to the cost of a close plus the cost of an open plus the cost of getting incoming capacity.
• For each candidate:
  • Determine the expected earnings.
    • Multiply the median rate-of-earnings we got above, with the size of the channel.
  • If the expected earnings is less than or equal to the cost-of-reopen, do not close the channel.
  • Else close the channel.