PeerSwap enables Lightning Network nodes to balance their channels by facilitating atomic swaps with direct peers. PeerSwap enhances decentralization of the Lightning Network by enabling all nodes to be their own swap provider. No centralized coordinator, no 3rd party rent collector, and lowest cost channel balancing means small nodes can better compete with large nodes.
PeerSwap currently has a working implementation for both CLN and LND nodes. An interoperable implementation for Eclair is in progress along with protocol improvement discussions.
At the moment PeerSwap is suitable for developers and expert node operators with Linux command line skills. Implementations of control panel GUI interfaces are currently underway which will make PeerSwap easier to use for ordinary end users.
Join our Discord chat for discussion and support: discord.gg/MSNt8eyZrT
Full Spec and Github Repo
Visualization: Mostly unbalanced channels
Unsolicited circular multi-hop balancing rarely works or is most often parasitic
Multi-hop balancing is most often unreliable
What does PeerSwap do?
Balance channel to 50%
Most channels want 50%. That one channel wants to be 100% because their mining pool makes mostly outgoing payments.