PeerSwap - P2P BTC LN Balancing Protocol


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.

At the moment PeerSwap is suitable for power 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.

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Full Spec and Github Repo

The proposed protocol specification and Github repository can be found at

Why PeerSwap?

Most Difficult Problem: LN Channel Balancing

Visualization: Mostly unbalanced channels 

Multi-Hop Balancing can be considered Harmful

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.

Benefits of PeerSwap

Balancing Solutions Comparison

PeerSwap Swaps

Types of Swaps