LND Channel Rebalancing Strategies -- Keep Liquidity Balanced

Why Rebalancing Matters

Channels become unbalanced over time. All liquidity ends up on one side and you cannot send or receive until rebalanced.

Option 1: Circular Rebalancing via lncli

# Create invoice, pay it out through depleted channel
lncli addinvoice --amt 100000
lncli payinvoice --pay_req <bolt11> --outgoing_chan_id <chan_id>

Option 2: bos rebalance

bos rebalance --out <channel_id> --in <channel_id> --max-fee-rate 500 --amount 200000

Option 3: Loop Out

loop out --amt 500000 --conf_target 6

Moves funds off a saturated outbound channel to on-chain wallet. Restores sending capacity.

Check Channel Balances

lncli listchannels | jq '.channels[] | {local: .local_balance, remote: .remote_balance}'

Tips

Aim for 50/50 balance on routing channels. Keep outbound toward exchanges. Set max fee rate to avoid overpaying.