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#phoenix wallet inbound deposit fees to open a channel. Is this normal? Here are 3 different deposits.

#plebchain

Yes. When using wallets like Phoenix or Breez

You are paying Phoenix to perform the service of opening a channel and pushing received funds to your side to use for future lightning payments. With most capacity on your side, anytime you receive more funds that EXCEED your available inbound liquidity will force them to have to open more channels as they do not want to hold custody.

You can avoid this fee over and over by...(easiest to hardest)

1) using a custodial service provider (meh)

2) pushing larger amounts first, then spending out to free up liquidity. e.g. you can swap out some to on chain elsewhere

3) run your own node and lightning server on top and manage channels on your own.

Some service providers seen in step 2 charge different fees. Examples are Phoenix, Muun, Breez, Mutiny, OlympusLN/Zeuspay, etc.

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Discussion

086564b2... 2y ago

Receive - spend - so I can receive again to avoid opening a channel? (This is total shit). Lots of balancing to think about. Probably not for me. I will keep a few hundred K sats around just to give away.

Nice and Kind Vic 2y ago

the wallet should hopefully be warning you if you are creating a receive invoice on it that will cause it to need to open a channel.

thats how breez works. see referenced image. the 68109 amount varies depending on my wallet balance vs channels and available inbound liquidity

i use a combination of custodial (alby, ln tips), phone node (breez) and server node