Instant Loop Outs

Instant Loop Out is a form of submarine swap that uses pre-committed onchain funds to make Loop Outs immediately available once the offchain payment has been settled.

Instant Loop Out is a new Loop feature available from version 0.28. It allows users to swap offchain to onchain funds immediately without waiting for onchain confirmations through the use of a pre-configured reservation in the form of an onchain commitment.. These funds can then be sent to any other onchain address within a set number of blocks within the creation of the reservation. Funds not sent out in that time frame are swept into your LND node’s internal wallet. These optimizations allow for better fee estimations, expression of time preference, and liquidity management.

Select users are able to take advantage of Instant Loop Outs. This service will be rolled out slowly and will require some manual intervention on both the server and client side.

Read more: Instant Submarine Swaps

Configuration: To make use of Instant Loop Outs, you must run loopd version 0.28 and add experimental=true to your loopd.conf file under ~/.loop/mainnet or start Loop with the --experimental flag.

To be invited, reach out to [email protected] and be prepared to share your L402, which you can obtain under id under loop listauth or in the Lightning Terminal dropdown menu. For now, reservations are done manually upon request and valid for 1000 blocks.

Once a reservation is made, it can be inspected with loop reservations list

[
    	{
        	"reservation_id":  "9f54c37bfa17766a35c48e810d7076842cc7e74f25fb60f2be954032e001f7cf",
        	"state":  "Confirmed",
        	"amount":  "250000",
        	"tx_id":  "0ccd141613f4f71996fba808a3a4604d985be7f166dca621cfd47d7de2706ddc",
        	"vout":  0,
        	"expiry":  2583088
    	}
]

The expiry shows the block height at which the reservation can be swept back by the Loop service. The Loop Out should be completed before this block height.

As of now, Instant Loop Outs can only be completed with the full amount of the reservation. To perform an Instant Loop Out, run loop instantout. You will see your available reservations and will be able to select one or multiple to complete.

Available reservations:

Reservation 1: shortid 9f54c3, amt 250000, expiry height 2583088

Max amount to instant out: 250000

Select reservations for instantout (e.g. '1,2,3')
Type 'ALL' to use all available reservations.
ALL

Estimated on-chain fee:                   	112 sat
Service fee:                              	500 sat

CONTINUE SWAP? (y/n): y
Starting instant swap out
Instant out swap initiated with ID: b59f246c6a96e7775f8693561fe23926a6f13289251e9b4980c92b2a0f910272, State: WaitForSweeplessSweepConfirmed
Sweepless sweep tx id: b18a829161f1b05dd6f6a369e5a8f5d7530c451978e6907ce6b4387bb815c33c

To get a list of completed swaps, run loop listinstantouts

{
	"swaps":  [
    	{
        	"swap_hash":  "b59f246c6a96e7775f8693561fe23926a6f13289251e9b4980c92b2a0f910272",
        	"state":  "FinishedSweeplessSweep",
        	"amount":  "250000",
        	"reservation_ids":  [
            	"9f54c37bfa17766a35c48e810d7076842cc7e74f25fb60f2be954032e001f7cf"
        	],
        	"sweep_tx_id":  "b18a829161f1b05dd6f6a369e5a8f5d7530c451978e6907ce6b4387bb815c33c"
    	}
	]
}

Running loop as part of litd? Read here on how to use the command line interface