Circular Rebalance

[jamaljsr]

In some cases, it is possible to adjust the balance of two channels using a circular rebalance. With this operation, funds are sent over the lightning network from the node back to itself, except the outgoing and incoming channels are specified in the route. This reduces the local balance on the outgoing channel and increases the local balance on the incoming channel. It is not always feasible to use this approach since you need sufficient balances on two channels in the opposite direction, but should this scenario arise, the circular rebalance will usually be an inexpensive solution.

Lit currently does not have this capability, but it would be a great additional tool for operators to manage their node's liquidity.