Julian's Notes

Lightning Loop

TL;DR

Loop is for channel rebalancing.

Loop-Out: You have all the LN balance and want to get rid of it. Send LN payments routed through your remote node to a party who will give you BTC off-chain. BTC transactions can be coalesced to reduce fees.

Loop-In: You have no LN balance and need more. Send someone BTC off chain and they'll send you LN payments route through the remote channel point. Eliminates need to close channel.

Lightning Loop