Translations:Balancing Nodes/20/en

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  1. Do Nothing

Doing nothing is usually a valid and zero-cost option. If you do nothing, you are hoping for traffic to flow from Z->A in future which will auto-balance your channels and you will also earn fees in the process. This should usually be the first option any node runner should think of instead of rushing into rebalancing routines.

  1. Circular Rebalancing

If doing nothing is not helping and you are not seeing two-way traffic, and at the same time you see a lot of traffic going to Z (which is failing at your node and eventually using other routes) and you want to be part of the action to earn fees for that traffic you can do what is known as circular rebalance. Which is essentially paying yourself which goes OUT of the channel with local balance and comes back in from the channel with remote provided there exist a path. Doing this cost the routing fees and you must evaluate carefully what you pay for rebalacne v/s what you earn on routing. If your routing fees for M->Z are very low and the rebalance fees is very high, you will make a loss over time. Plebs sometimes ask if Circular Rebalancing is bad. Well there is no good or bad - circular rebalancing is a "tool" and costs to use the tool. It can be used to fix a channel or it can be used to create a DIY disaster.

  1. Loop out

This is the most expensive route. You payout to a custodial lightning wallet (or LOOP service) and take the coin on-chain.