Peer with Loop
We are always looking for well-connected routing node operators who are interested in earning routing fees to help route these funds to the Loop node.
The Loop Lightning Network node is publicly reachable and accepts incoming channels.
Lightning Loop helps merchants and other Lightning services swap their off-chain funds for on-chain funds. We are always looking for well-connected routing node operators who are interested in earning routing fees to help route these funds to the Loop node.
As merchants and services perform Loop Out operations to move their off-chain earnings onto the blockchain, the unidirectional movement of funds will "drain" your channels, which can happen rapidly for routing nodes with competitive fee rates and good connectivity., As the liquidity moves to Loop the channel capacity is exhausted and the channel is closed.
Loop peers are compensated for their blockchain fees and liquidity costs, mainly by earning fees on the forwarded payments. It is important that the fees for your channel with Loop are appropriately set before the channel is active, ideally by configuring defaults.
Any channel opened to Loop may deplete quickly using appropriate fees, after which the channel is likely to be cooperatively closed so the on-chain funds, which have moved to Loop’s side of the channel can be used to fund the swaps on-chain. Peering with Loop requires adequate inbound capacity from the wider network, which is likely to deplete overtime.
Nodes with an abundance of inbound liquidity may find it profitable to earn routing fees by selling their excess inbound liquidity. In practice we see most of the fees of a Loop Out being paid to routing node operators rather than the Loop service itself.
To take advantage of aggregation benefits and minimize on-chain fees, Loop requires a minimum channel size of 30,000,000 satoshis.
Amend your configuration file
Restart LND to put this change into effect
Open your channel to Loop
lncli openchannel –node_key 021c97a90a411ff2b10dc2a8e32de2f29d2fa49d41bfbb52bd416e460db0747d0d –connect 188.8.131.52:9735 –local_amt 210000000 –conf_target 6
Your channel will become active after 6 confirmations.