matt on Nostr: In order to ensure competitive fees, balances under some threshold (eg $20) are ...

In order to ensure competitive fees, balances under some threshold (eg $20) are stored in a trusted/custodial wallet (in this case Spark, but it could equally be Liquid or Arkade or whatever) and as soon as you receive more you get a channel from an LSP and the coins are stored in self-custody.