LND Loop Out — Move Funds Off-Channel to On-Chain

LND Loop Out lets you move funds from a Lightning channel to an on-chain Bitcoin address without closing the channel. Useful for rebalancing outbound liquidity.

Install loop client

# Install loop
curl -L https://github.com/lightninglabs/loop/releases/download/v0.28.2-beta/loop-linux-amd64-v0.28.2-beta.tar.gz -o loop.tar.gz
tar xzf loop.tar.gz
sudo cp loop-linux-amd64-v0.28.2-beta/loop /usr/local/bin/
sudo cp loop-linux-amd64-v0.28.2-beta/loopd /usr/local/bin/

# Start loop daemon
loopd &

# Check connection
loop getparams

Check Loop Out quote before executing

# Get a quote for moving 500k sats off-channel
loop quote out 500000

# Output shows:
# swap_fee_sat: fee paid to Loop service
# miner_fee_sat: on-chain miner fee
# prepay_amt_sat: prepayment (non-refundable if you cancel)
# swap_payment_dest: Loop server pubkey
# cltv_expiry_delta: timelock

Execute Loop Out

# Move 500k sats from channel to on-chain address
loop out \
  --amt 500000 \
  --addr <YOUR_BITCOIN_ADDRESS>  # optional: specify destination

# With specific channel (to drain a particular channel)
loop out \
  --amt 500000 \
  --channel <CHAN_ID>

# Check status of active swap
loop monitor

Monitor swap progress

# List all swaps
loop listswaps

# Monitor in real time
loop monitor

# Swap states:
# INITIATED → PREIMAGE_REVEALED → SUCCESS
# or FAILED (funds returned after timeout)

Typical costs

Loop Out typically costs 0.1-0.5% of the swap amount plus miner fees (~1000-3000 sat). For 500k sats, expect ~500-2500 sat in fees. Always check the quote first.

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