LND Dual-Funded Channels -- Open Channels With Both Sides Contributing

What Are Dual-Funded Channels?

Dual-funded channels (also called interactive channel opening) allow both parties to contribute funds when opening a channel. This gives both sides immediate inbound and outbound liquidity from the start.

Requirements

# Both nodes must support option_dual_fund
# LND v0.17+ with experimental flag
[protocol]
protocol.option-scid-alias=true
protocol.zero-conf=true

Enable Dual-Fund Support

# lnd.conf
[protocol]
protocol.option-scid-alias=true

Open a Dual-Funded Channel

# Standard channel open (single-funded)
lncli openchannel --node_key <pubkey> --local_amt 1000000

# For dual-funded, both sides must coordinate
# Currently requires PSBT flow or external tools like lndk

Check if Peer Supports Dual-Fund

lncli getnetworkinfo
lncli nodeinfo --pub_key <pubkey>

Liquidity Ads (BOLT 12 Extension)

Liquidity Ads allow nodes to advertise they will contribute funds to channel opens for a fee. This helps solve the inbound liquidity problem automatically.

Common Issues

- "peer does not support dual fund" — remote node lacks option_dual_fund

- Funding tx stuck — both sides must sign; if one goes offline, use CPFP to bump fee

- No inbound after open — verify remote node actually funded their side

Alternative: Buy Inbound Liquidity

If dual-fund is unavailable, use Loop In, Lightning Pool, or Amboss Magma to purchase inbound capacity from the market.