Circular balancing absolutely messes with your other peers. Peerswap involves only one Lightning invoice directly to your peer, 0 fees, and one on chain transaction.
Discussion
Ah! You missed the peerswap part. That makes sense.
Very few people have that though.
I* missed, not you. Sorry for the typo.
You should take a look at the paths on your circular balances, they will involve other nodes you're not even connected to but are connected to your peers and those channels are the ones that you need for routing too.
I understand that. I just still don’t understand why that would be an issue. That would be true for any other form of payment, why is a circular rebalance different?
Ah, I understand now. A force close only requires one on chain transaction too. How do I get my sats back into my other lightning channel I was trying to balance with? The benefit of circular rebalancing is that you can optimize your channel efficiency without going back to L1 or Liquid.