Lightning Loop

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Move Bitcoin between Lightning channels and on-chain wallets

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Ask SI about Lightning Loop

Answers use saved listing facts and recorded sources.
Homepage screenshot
Screenshot of the Lightning Loop homepage

What it does

Lightning Loop helps node operators refill or empty Lightning channels without closing them. It supports one-off swaps and automatic liquidity rules with spending limits.

Loop solves a channel-balance problem. Loop Out moves Lightning funds to an ordinary Bitcoin address, making more room to receive Lightning payments. Loop In sends on-chain Bitcoin into Lightning channels so the node can spend or route it. Both directions concern Bitcoin, with different network and settlement steps.

In Lightning Terminal, open Loop, select a channel or overall balance and move the slider to choose the amount and direction. Choose Loop for a single swap, then review costs and the confirmation target. An outgoing swap can specify an external receiving address. Submit starts it.

A failed liquidity probe can stop the swap before funds move; trying another channel or a smaller amount may be necessary. Keep the node and its Loop software online while the swap is active. A later failure can require recovering the on-chain funds and paying recovery costs, so a pending status should not be treated as completion.

The pricing page gives indicative service ranges of 0.05% to 0.5% for Loop Out and 0.10% to 1% for Loop In. The actual quote depends on waiting time and Bitcoin network conditions. On-chain and Lightning costs are additional. Loop Out also requires a 30,000-satoshi prepayment, which counts toward the swap but can be forfeited if the final payment is not made. First use purchases an authentication token for one satoshi; this payment-based access does not need an email account.

Autoloop applies rules to a peer or the whole node. Set the minimum swap size, maximum fee and a daily, weekly or monthly budget before enabling it. The channel view shows previous swaps and lets you remove the rule. High network fees can prevent an automatic swap from starting within its budget.

For command-line operation, the client runs alongside LND, the Lightning node software. Its default connection is the local LND instance, using that node's credentials. The separate Loop credentials protect its own software interfaces. The client offers testnet operation and a monitor command for following swaps; installing the software alone does not give an unfunded node usable channel liquidity.

Strengths

  • Moves Bitcoin in either direction without closing the Lightning channel
  • Autoloop lets operators limit swap size, fees and recurring spending

Watch out for

  • Available Lightning routes can prevent a requested swap
  • Interrupted swaps can require recovery work and additional transaction costs

Best for

  • Lightning node operators maintaining receiving or sending capacity
  • Merchants moving Lightning receipts to an on-chain Bitcoin wallet

Sources