# Liquidity provider utxo management

**URL:** <https://delvingbitcoin.org/t/liquidity-provider-utxo-management/600>\
**Category:** Implementation\
**Tags:** coinselection, lightning\
**Created:** [February 22, 2024, 2:49pm UTC](https://delvingbitcoin.org/t/liquidity-provider-utxo-management/600 "2024-02-22T14:49:26Z")\
**Posts on this page:** 1\
**Showing post:** 12

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**Author:** ![remyers](https://delvingbitcoin.org/user_avatar/delvingbitcoin.org/remyers/32/159_2.png) [@remyers](https://delvingbitcoin.org/u/remyers)\
**Post date:** [May 10, 2024, 3:13pm UTC](https://delvingbitcoin.org/t/liquidity-provider-utxo-management/600/12 "2024-05-10T15:13:30Z")

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I also created a new python only simulation [`simulate-funding-v2.py`](https://github.com/remyers/coin-selection-simulation/blob/c82354cb7d13ed2ff64f2044e400be8e6d9e123f/scripts/simulate-funding-v2.py) that is similar to the bitcoind based [`simulation.py`](https://github.com/remyers/coin-selection-simulation/blob/c82354cb7d13ed2ff64f2044e400be8e6d9e123f/scripts/simulation.py) which I forked from achow101’s coin-selection-simulation project.

Running `simulate-funding-v2.py` is much faster because it doesn’t test bitcoind’s complex coin selection algorithms. It simply picks the best single input for each simulated funding attempt. My goals is to find a heuristic that pays the least total fees for each simulation given estimates of the feerate probability distribution and funding request probability distribution.

I’ll post my results from the simplified simulations once I’ve validated them using the full bitcoind simulation.

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_[View the full topic](https://delvingbitcoin.org/t/liquidity-provider-utxo-management/600)._