Abstract
A discretization of the peakons lattice is introduced, belonging to the same hierarchy as the continuous--time system. The construction examplifies the general scheme for integrable discretization of systems on Lie algebras with $r$--matrix Poisson brackets. An initial value problem for the difference equations is solved in terms of a factorization problem in a group. Interpolating Hamiltonian flow is found. A variational (Lagrangian) formulation is also given.

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