Feed for tag: channel-rebalancing
Channel Rebalancing

Dmytro Piatkivskyi started the following discussion on lightning-dev regarding the topic of channel rebalancing.

There has been a lot of discussion on sending cycle transactions to oneself to ’re-balance’ the network. On LN mailing list [1] or numerous places elsewhere. There has been even a paper suggesting a smart mechanism to do the re-balancing (see Revive or Liquidity network [2]). My question is what do we actually get from it? [3] states that the distribution of funds in channels does not really affect the network liquidity. I can see cheaper fees or shorter paths if the network is kept balanced. But don’t you think that a smart fee strategy will do the job?

To save your time, [4] explains the gist from [3].