LND Routing Fees Optimization----Earn More From Forwarding

Why Routing Fees Matter

Every payment forwarded through your node earns a small fee. Setting fees strategically maximizes earnings while keeping channels competitive.

Fee Structure

Base fee: flat amount per payment (in millisatoshis). Fee rate: percentage of payment amount (parts per million).

# Check current fees
lncli feereport

# View per-channel policy
lncli getchaninfo <chan_id>

Update Channel Fees

# Set fees for a specific channel
lncli updatechanpolicy \
  --base_fee_msat 1000 \
  --fee_rate 0.000001 \
  --time_lock_delta 40 \
  --chan_point <txid:output_index>

# Set global defaults
lncli updatechanpolicy \
  --base_fee_msat 1000 \
  --fee_rate 0.000001 \
  --time_lock_delta 40

Fee Strategy Tips

- Lower fees on channels with high outbound liquidity to attract traffic

- Raise fees on scarce inbound channels to slow drain

- Base fee of 0 + small rate works well for high-volume routing nodes

- Popular routes (Kraken, Bitfinex, exchanges) can support higher fees

Monitor With bos

# View forwarding history
bos forwards

# Fee earning summary
bos accounting --date 2024-01-01

Common Mistake

Setting fees too high causes payments to route around you. Start low, check feereport weekly, and adjust based on actual forwarding volume.