Good morning list,

I saw elsewhere that there are plans to move peerswap to *two* hops, but no 
further, as reliability is a concern.

The logic behind allowing up to two hops distance is that the two endpoints 
know the state of the channels to the intermediate node.

But we should also consider that the intermediate node itself also knows the 
state of those channels.

Along every intermediate node on the forwardable peerswap path, every 
intermediate node knows the state of its incoming channel and its outgoing 
channel.

Presumably, we can write smart programs that can automatically select an 
outgoing channel that:

* Would really appreciate the adjustment in channel balance.
* Is with a peer with high uptime.

Thus, while there is a degradation in expected reliability compared to a 
single-hop case, we expect the degradation to be small.

Remember, the intermediate nodes in a forwardable peerswap are all incentivized 
for the swap to succeed, because it gets two channels improved balance ***for 
free***, whereas self-paying reblances have a cost.
We can expect that the intermediate nodes have an incentive to ensure the swap 
succeeds, just as we expect that the intermediate nodes have an incentive to 
ensure that any payment succeeds.

Regards,
ZmnSCPxj

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