LND Channel Rebalancing Strategies -- Fix Liquidity Imbalances

Why Rebalancing Matters

When all liquidity is on one side of a channel, you cannot send or receive. Rebalancing moves sats from outbound-heavy channels to inbound-heavy ones.

Option 1: Circular Rebalance via lncli

lncli sendpayment --dest <your_pubkey> --amt 500000 --last_hop <peer_pubkey> --max_fee_percent 0.5

Option 2: Balance of Satoshis (bos)

bos rebalance --in <incoming_peer_pubkey> --out <outgoing_peer_pubkey> --amount 500000 --max-fee-rate 50

Option 3: Loop Out

loop out --amt 1000000 --addr <your_btc_address>

Check Channel Balance

lncli listchannels | python3 -c "import json,sys; [print(c['remote_pubkey'][:20], c['local_balance'], c['remote_balance']) for c in json.load(sys.stdin)['channels']]"

Tips

- Set max fee rate to avoid paying more in fees than you earn routing

- Target 50/50 local/remote balance for maximum routing capacity

- Small frequent rebalances cheaper than large infrequent ones