Phoenix Wallet - Swap In \ stacker news ~lightning

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190 sats \ 12 comments \ @02b58a1376 10h lightning

Currently I have a very small channel.

As I need to swap in some on-chain sats (much bigger amount than my actual channel capacity), what will happen?

As far as I understood, there is no fee for swapping in from on chain, however since my channel is very small, Phoenix will need to make an on-chain tx to enlarge it, right?

So, I will pay two on-chain tx + 1% of the sats I am sending, correct?

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57 sats \ 11 replies \ @DarthCoin 10h

I will pay two on-chain tx + 1% of the sats I am sending, correct?

Yes Phoenix, is using splicing. That means it will expand your existing channel and that involve more onchain fees and operation fees. Once you expand that channel, it remain the same, even if you swap out sats. But never swap out all of them, leave like 1-5% to keep the channel open.

I always recommend to new Phoenix users to start with a big channel and slowly swap out to another onchain cold wallet no more than 90-95% of that initial channel. Then refill it.

If you start with a small deposit you will pay all the time a new fee for the next deposit (if you didn't swap out existing sats).

Keep in mind important aspect: if you swap out ALL the sats, they will close the channel, so next time when you receive, it will cost you again those high fees.

98 sats \ 2 replies \ @denlillaapan 7h

Um, correct me if I'm wrong here Darth, but I do believe they shrink your channel if you spend on-chain/swap out

0 sats \ 1 reply \ @nichro 6h

I believe this is the case too.

Basically onchain transactions expand and shrink the channel.

Receive BTC from onchain = channel capacity grows

Send BTC to onchain = channel shrinks

0 sats \ 0 replies \ @denlillaapan 5h

Yup.

Will defer to Darth here, since he def knows more than me in this area

0 sats \ 7 replies \ @itsrealfake 10h

the language of "swap" doesn't make sense to me... there's probably a glossary somewhere?

33 sats \ 5 replies \ @DarthCoin 10h

swap = when you exchange the same item but on different levels or use cases. In this case, move sats from a LN channel into an onchain address.

Glossary Resources:

0 sats \ 4 replies \ @itsrealfake 9h

interestingly, "swap" isn't present in any of those glossaries.

0 sats \ 3 replies \ @DarthCoin 9h

Seems that you are new to Bitcoin...

Because many of those glossaries were written before LN existence... Until LN come out, we didn't have to do any "swap".

0 sats \ 2 replies \ @itsrealfake 9h

I'm not terribly new to bitcoin... but I ignored a lot of information that seemed like shitcoiner noise. and the shitcoiners were always talking about swapping this or that.

peg-in/peg-out... swap... splice... all these are LN terminology that I haven't internalized the meanings for.

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0 sats \ 0 replies \ @nichro 6h

I do think the "swap" word makes it confusing when first engaging with LN or Liquid. Always took a moment on Robosats when id see swapin or swap out, figuring out which one means going to LN and vice versa.