Lightning Channel Rebalancing Tools Compared

Overview of Lightning Channel Rebalancing

Lightning channels are directional: as payments flow through them, liquidity accumulates on one side. Once a channel's outbound or inbound liquidity is fully depleted, it can no longer route payments in that direction. For routing node operators, imbalanced channels mean lost routing fees, failed forwards, and degraded network utility.

Rebalancing restores usable liquidity so channels can route in both directions. Four primary methods exist: circular rebalancing (self-payments routed through the network), submarine swaps (atomic on-chain/off-chain exchanges), channel splicing (resizing channels without closing them), and automated fee management (steering liquidity through dynamic pricing). Each method carries different costs, complexity, and success rates.

Circular Rebalancing Tools

Circular rebalancing sends a self-payment from a channel with excess outbound liquidity to one that needs it, routed through other nodes in the network. The payment leaves your node through one channel and returns through another, shifting the channel balance on both sides. No on-chain transaction is required, but routing fees accumulate along the path.

Success rates are low: fewer than 5% of circular rebalance attempts typically complete, since each hop requires sufficient liquidity in the right direction. Well-optimized operators report costs of 50-200 PPM, while unoptimized rebalancing can exceed 500 PPM and erase routing profits entirely.

Balance of Satoshis (bos)

The most widely used circular rebalancing tool for LND nodes. The bos rebalance command routes a self-payment from a specified outbound channel to an inbound channel. Key features include formula-based parameter expressions that can reference channel capacity and fee rates, an --avoid flag with conditional logic, and Telegram bot integration for monitoring. Available via npm, Docker, and bundled with Umbrel and RaspiBlitz.

rebalance-lnd

A Python-based LND rebalancing tool with built-in economic viability checks. Before executing a rebalance, it compares routing costs against potential future earnings and accounts for opportunity costs from reducing source channel liquidity. Note: the repository was archived in April 2026 and is now read-only. Existing installations continue to function but will not receive updates.

CLN Alternatives: Sling and CLBOSS

Core Lightning operators use Sling, a dynamic plugin that moves liquidity between channels with automatic startup via sling-autogo. CLBOSS goes further as a fully automated node manager: it performs circular rebalancing, just-in-time (JIT) rebalancing on forwards, auto-opens channels during low-fee periods, and acquires incoming capacity through Boltz swaps. Its default maximum rebalance fee is 1,000 PPM, configurable via --clboss-max-rebalance-fee-ppm.

Submarine Swap Services

Submarine swaps exchange on-chain bitcoin for off-chain Lightning balance (or vice versa) using HTLCs for trustless atomic execution. Unlike circular rebalancing, swaps reliably restore channel liquidity because they add or remove actual funds rather than depending on third-party routing paths.

Lightning Loop

Lightning Labs' Loop service supports two operations: Loop Out (Lightning to on-chain, freeing inbound liquidity) and Loop In (on-chain to Lightning, adding outbound capacity). Loop Out charges a service fee of approximately 500 sats on a 300,000 sat swap (~0.17%), plus on-chain sweep fees and off-chain routing fees. Total cost for a 300,000 sat swap runs approximately 1,300 sats (~0.44%) during normal fee conditions.

Loop's AutoLoop feature examines channel liquidity every 10 minutes and automatically triggers swaps based on configurable inbound/outbound thresholds. In February 2025, Lightning Labs integrated MuSig2 to enable static reusable deposit addresses with 2-of-2 taproot constructs, allowing users to fund a Loop In address during low-fee periods and execute the swap later. As of March 2026, Loop can open new channels directly from static address deposits.

Boltz Exchange

Boltz offers non-custodial atomic swaps between Lightning, on-chain Bitcoin, and Liquid. Service fees range from 0.1% to 0.5%, and can go negative (a rebate) when Boltz needs to rebalance its own inventory. Boltz's key differentiator is Liquid swap support: at 50 sat/vB on-chain fees, a 100,000 sat Liquid swap costs approximately 527 sats compared to 15,050 sats for a mainchain swap, a 96% cost reduction. Unlike Loop, Boltz is implementation-agnostic and works with LND, CLN, and Eclair.

PeerSwap

PeerSwap enables direct peer-to-peer submarine swaps between channel partners without a third-party intermediary. If two nodes share an imbalanced channel, one sends on-chain BTC (or L-BTC) while the other adjusts the Lightning balance accordingly. There are no service fees: the only cost is the on-chain or Liquid transaction fee. PeerSwap supports both LND and CLN and is the most cost-efficient option for bilateral relationships where both parties run the plugin.

Splicing: Resize Channels Without Closing

Splicing adds or removes funds from an existing channel through a single on-chain transaction, without closing it. A splice-in increases channel capacity by adding on-chain funds. A splice-out removes funds to an on-chain output. The channel remains fully operational during confirmation.

Splicing fundamentally changes the rebalancing equation. Instead of managing liquidity across many channels through circular payments, a node can resize individual channels as needed. Phoenix wallet pioneered this approach with a single-channel model: incoming payments that exceed inbound liquidity trigger an automatic splice-in. ACINQ reported a 60% decrease in transaction fees after implementing splicing in Phoenix, with a further ~20% reduction after adding Taproot channel support in 2025.

CLN moved splicing out of experimental status in April 2025 (v26.04), supporting splice-in, splice-out, and cross-splicing between channels. Eclair has supported splicing since mid-2023. LND has not yet shipped production splicing support, which is why LND operators remain more dependent on circular rebalancing and submarine swaps. For a deeper look at how splicing works, see our splicing research article.

Automated Fee Management

Rather than actively moving liquidity, fee management tools steer the market toward balanced channels by adjusting routing fees dynamically. When a channel has excess outbound liquidity, lowering fees attracts more forwards through it. When outbound is scarce, raising fees discourages traffic and allows the channel to accumulate outbound naturally.

charge-lnd

A policy-based fee manager for LND with eight fee strategies. The most relevant for rebalancing is the proportional strategy, which adjusts outbound fees based on the channel's balance ratio. Channels with abundant outbound get lower fees; depleted channels get higher fees. charge-lnd also supports negative inbound fees (discounts) on LND 0.18+, incentivizing traffic in the desired direction. Policies are defined in INI-style config files and evaluated top-to-bottom with first-match semantics.

lndmanage

A channel management and analytics tool for LND that includes dynamic fee optimization via update-fees. It adjusts fees incrementally based on forwarding demand and provides activity reports, peer statistics, and node recommendations. Its listchannels rebalance command identifies channels most in need of redistribution.

Tool Compatibility by Node Implementation

Tool availability varies dramatically between Lightning implementations. LND has the largest ecosystem of third-party rebalancing tools, while CLN relies more on its plugin architecture. Eclair has the fewest dedicated tools but benefits from native splicing support.

Cost Efficiency Comparison

Rebalancing economics are critical. Poorly optimized rebalancing can cost more than the routing fees it enables. One documented operator spent 542 PPM on rebalancing while earning only 140 PPM in routing fees, producing a net loss. After tuning fee limits and path selection, they reduced rebalancing costs to 137 PPM.

Fee management (charge-lnd, lndmanage) has the lowest direct cost since it steers liquidity through pricing rather than active transfers. PeerSwap is the cheapest active method when available, charging zero service fees. Circular rebalancing through tools like bos and Sling costs 50-200 PPM in well-optimized setups. Submarine swaps through Loop and Boltz run 0.1-0.6% plus on-chain fees. Boltz Liquid swaps offer a middle ground, cutting on-chain costs by up to 96% compared to mainchain swaps.

Note: All rebalancing costs include a time component. Circular rebalances execute in seconds when successful but may require dozens of failed attempts. Submarine swaps require on-chain confirmations (minutes to hours). Splicing requires one on-chain confirmation but keeps the channel operational during the wait.

How to Choose a Rebalancing Strategy

The right approach depends on your node implementation, channel count, and operational goals.

LND operators with many channels should combine fee management (charge-lnd) with selective circular rebalancing (bos) for high-priority channels, and Loop or Boltz for channels that resist balancing through the network. Set strict fee limits on circular rebalancing to avoid spending more than you earn.

CLN operators benefit from CLBOSS for hands-off management, with Sling available for targeted rebalancing. Native splicing support (v26.04+) reduces the need for circular rebalancing by allowing direct channel resizing. PeerSwap is an excellent supplement for channels with cooperative peers.

Eclair/Phoenix operators already benefit from native splicing and typically need minimal manual rebalancing. Boltz is the primary third-party option for Eclair nodes that need additional liquidity management. For an overview of liquidity marketplaces, see our Lightning liquidity marketplace comparison.

Beyond Rebalancing: Statechains and Spark

Channel rebalancing exists because Lightning channels bind liquidity between two specific peers. When that liquidity becomes directionally depleted, operators must spend time, money, and on-chain fees to restore it. This is an inherent cost of the channel-based routing model.

Statechains, the model used by Spark, take a different approach entirely. VTXOs (Virtual Transaction Outputs) are not locked into bilateral channels. They can be transferred to any participant without routing through intermediary nodes and without channel capacity constraints. There is no concept of inbound or outbound liquidity to manage, no circular rebalancing, and no submarine swap fees. For a detailed technical comparison, see our research on statechains as a Bitcoin scaling solution and the statechains vs Lightning comparison.

Frequently Asked Questions

What is Lightning channel rebalancing?

Channel rebalancing is the process of redistributing liquidity within a Lightning node's channels so that each channel has usable capacity in both directions. When payments flow through a channel, satoshis move from one side to the other. Rebalancing shifts them back, either through self-routed circular payments, on-chain/off-chain atomic swaps, or channel resizing via splicing.

How much does Lightning rebalancing cost?

Costs vary by method. Circular rebalancing through bos or Sling typically costs 50-200 PPM when well-optimized. Lightning Loop charges approximately 0.4-0.6% including on-chain fees. Boltz mainchain swaps cost 0.1-0.5% plus miner fees, while Boltz Liquid swaps can be 96% cheaper than mainchain. PeerSwap charges no service fee, only the on-chain transaction cost. Fee management through charge-lnd costs nothing directly but works gradually.

What is the best rebalancing tool for LND?

Balance of Satoshis (bos) is the most popular and actively maintained circular rebalancing tool for LND. For automated fee management, charge-lnd is the standard. For reliable liquidity restoration, Lightning Loop provides submarine swaps with AutoLoop automation. Most experienced operators combine all three: fee management as the baseline, circular rebalancing for targeted adjustments, and Loop for channels that resist network-based rebalancing.

Why do most circular rebalance attempts fail?

Each hop in a circular rebalance path requires sufficient liquidity in the right direction. With 3-5 hops in a typical path, the probability of all hops having adequate liquidity simultaneously is low. The failure rate is estimated at over 95% for attempted routes. Tools like bos and regolancer mitigate this by rapidly probing many paths, but the fundamental constraint is that Lightning channel balances are private and change constantly.

Does splicing eliminate the need for rebalancing?

Splicing significantly reduces the need for rebalancing but does not eliminate it entirely for routing nodes. It allows resizing individual channels on-chain, which is simpler and cheaper than closing and reopening. Phoenix wallet's single-channel model with automatic splicing avoids rebalancing completely for end users, but routing nodes with many channels may still benefit from circular rebalancing and fee management alongside splicing.

What is the difference between Loop Out and Loop In?

Loop Out sends a Lightning payment to the Loop server, which returns on-chain bitcoin. This frees up inbound liquidity on the channel used for the outgoing payment. Loop In does the reverse: you send on-chain bitcoin to Loop, which sends you a Lightning payment, adding outbound capacity to the receiving channel. Loop Out is more common for rebalancing since routing nodes typically need to restore inbound capacity on depleted channels.

Can I automate Lightning channel rebalancing?

Yes. Loop AutoLoop monitors channel liquidity every 10 minutes and auto-triggers swaps based on configurable thresholds. CLBOSS provides full automation for CLN nodes, including circular rebalancing, JIT rebalancing on forwards, and automatic channel opening. charge-lnd automates fee adjustments on a schedule. regolancer-controller monitors channels and triggers circular rebalances when balances fall below configured levels.

This tool is for informational purposes only and does not constitute financial advice. Rebalancing costs, fee structures, and tool availability change frequently. Success rates and cost estimates are approximate and based on publicly reported data from node operators and tool documentation. Always verify current pricing and compatibility before making operational decisions.