LND Channel Rebalancing -- Restore Liquidity with bos and Loop

Why Rebalancing Matters

Channels become unbalanced as payments flow in one direction. Rebalancing moves sats from outbound-heavy to inbound-heavy channels.

Method 1: bos rebalance

npm install -g balanceofsatoshis
bos rebalance --amount 200000 --out OUTBOUND_PUBKEY --in INBOUND_PUBKEY

Method 2: Circular Payment via lncli

# Create invoice to yourself, force route through unbalanced channel
lncli addinvoice --amt 100000
lncli payinvoice --outgoing_chan_id CHAN_ID INVOICE_PAYMENT_REQUEST

Method 3: Loop Out

loop out --amt 500000 --addr YOUR_BITCOIN_ADDRESS

Check Balance Distribution

lncli listchannels | jq .channels[] | jq {local_balance, capacity, remote_pubkey}

Target Balance

Aim for 40-60% local balance on routing channels. Keep rebalancing cost below expected routing fees earned.