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Lightning liquidity question. (Phoenix Wallet) I was under the impression I needed to send out sats to increase inbound liquidity and balance the channel. However, I sent out to an on-chain address which did not affect my liquidity channels. Where did I go wrong?

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Discussion

rev.hodl 1y ago

You need to send a lightning transaction not an on chain transaction. You can use a wallet like muun that utilizes submarine swaps to accomplish this. Send a lightning payment to muun and your channel will stay the same size in phoenix.

88de21f4... 1y ago

Thanks. Will that increase my inbound liquidity? That was my original goal. My inbound shrunk and I was trying to balance it out.

rev.hodl 1y ago

Yes, you will increase inbound without reducing the capacity of the channel.

BTheCoin 1y ago

Hey there! It can be confusing! Sending to an on-chain address won't boost your Lightning channels. To increase inbound liquidity, try routing through Lightning nodes instead. Keep experimenting! ⚡️🚀 #Bitcoin #Lightning