LND Channel Rebalancing Strategies -- Keep Routing Profitable

Channel rebalancing moves liquidity from outbound-heavy channels to inbound-heavy ones, keeping your node profitable for routing.

Option 1: Circular Rebalance with lncli

lncli payinvoice --fee_limit_sat 50 $(lncli addinvoice --amt 100000 | jq -r .payment_request)

Option 2: bos rebalance

bos rebalance --out OUTBOUND_PUBKEY --in INBOUND_PUBKEY --amount 100000 --max-fee-rate 500

Option 3: charge-lnd auto-rebalance

strategy=use_node
max_fee_ppm=300
target_local_balance_ratio=0.5

Check Channel Balance

lncli listchannels | jq .channels[].local_balance

When to Rebalance

Local > 80%: rebalance to get inbound. Local < 20%: channel depleted, use loop-out or open new channel.

Cost Rule

Only rebalance if routing revenue exceeds rebalancing fee. Aim for rebalancing cost under 0.1% of rebalanced amount.