Why JIT Liquidity + Splice Are Critical for Atomic Swaps
@BitlightLabs has released the latest update on staying in sync with Lightning development progress, while also introducing several new features planned for future support.
@rgbstashlabs provides an in-depth explanation of two key features from this roadmap, along with further context on their significance for Stash Labs products such as RLSP, and Flash Dex.
๐ฅ Two Core Capabilities Explained:
โข JIT liquidity for RGB: just-in-time RGB asset channel opening
โข Splice for RGB: dynamic capacity adjustment of RGB asset channels
Building on our RLSP + Atomic Swap capabilities, is about to launch native asset swap trading. However, the current RGB Lightning Network pipeline has key pain points:
When a user completes a $RGB buy order via RLN and RLSP, two channels must be opened sequentially:
โ
User opens a BTC channel to pay BTC to the RLSP
โ
RLSP opens a BTC/RGB composite channel to deliver $RGB to the user
Three Major Drawbacks of the Current Model:
1โฃ Dual channel opening requires waiting for Bitcoin mainnet block confirmations โ typically 6 confirmations โ resulting in extremely high transaction latency.
2โฃ Channel capacity is fixed. Once the balance is insufficient for the next transaction, the old channel must be closed and a new one rebuilt โ a costly process with high fees and a fragmented user experience.
3โฃ The current model is completely unable to support high-frequency continuous trading scenarios like FlashDex perpetual contracts, severely limiting the RGB ecosystem's trading experience.
๐ JIT Liquidity | On-Demand RGB Channel Opening
JIT (Just-In-Time) liquidity โ the core principle is to create on demand, with no pre-lockup required:
โธ Users don't need to pre-fund or manually create RGB asset channels;
โธ When initiating a $RGB receive/swap request, the RLSP instantly generates a virtual off-chain channel โ no immediate on-chain settlement needed;
โธ After the first transaction is completed, it is automatically anchored on-chain and converted into an official RGB Lightning channel.
๐ก Core Value:
โข Zero-barrier entry to RGB asset swaps โ no idle capital lockup.
โข Dramatically reduced transaction wait times, eliminating mainnet block confirmation delays.
โข Enables users to complete $RGB transactions as seamlessly as Lightning BTC, while maximizing RLSP capital efficiency.
๐ Splice for RGB | Dynamic Capacity Adjustment for RGB Asset Channels
Built on the Lightning Network's native Channel Splicing technology, allowing RGB asset channels to be resized without closing or rebuilding:
โธ Splice-in (expand): Add BTC/RGB assets directly to an existing channel;
โธ Splice-out (shrink): Withdraw idle funds from the channel as needed;
โธ The channel remains uninterrupted throughout โ no trading pauses required. Only the funding transaction is updated via signatures, requiring a single on-chain confirmation.
๐ก Core Value:
โข Permanently eliminates the old pattern of "close and reopen a channel when the balance runs out".
โข Seamlessly supports high-frequency continuous trading, enabling FlashDex perpetual contract scenarios.
โข Significantly reduces on-chain fees from repeatedly opening/closing channels, improving capital turnover and utilization.
๐ Synergy of Three โ Redefining the Atomic Swap Experience
โข RLSP + Atomic Swap: Powers the underlying asset swap logic.
โข JIT: Solves the "0 to 1" problem โ no pre-built channels, instant trade initiation.
โข Splice: Solves the "1 to N" problem โ dynamic channel scaling to support high-frequency continuous trading.
With JIT + Splice landing together, the current pain points of RGB channels โ high latency, cumbersome workflows, and the inability to support high-frequency trading โ will be fully resolved. This lays a solid infrastructure foundation โ high performance, low barriers, and high liquidity โ for upcoming Atomic Swap and ecosystem derivatives trading. ๐
It is worth noting that these two features will not affect the launch timeline โ they serve purely as a leap forward in user experience.
RGB super-compatibility is not a promise but an engineering discipline enforced with zero tolerance for regression.
RGB on Lightning: Walking with Upstream
While the previous release proved that RGB could connect to Lightning through full LDK state machine compliance, 1,019 tests, and CLN/LND interoperability, the latest release now answers the harder question of whether RGB can evolve at Lightning's pace without friction โ and it does.
We synced our upstream dependencies with the Lightning mainline, absorbing 16 medium-or-higher security fixes, including critical vulnerabilities that were never backported.
Weโve formalised this approach as bLIP-0070, encoding super-compatibility at the protocol layer via feature bits 826 (mandatory) and 827 (optional), along with TLV type 827167.
Compatibility only earns the right to the real work of making Lightningโs most advanced primitives asset-native: Splice support, already live in BTC channels, will extend to RGB channels for adjusting capacity without closing, while Async Payments and offline receipt of value will carry over to RGB assets, and JIT liquidity will followโall without bridges, custodial wrappers, or separate networks, leaving simply the Lightning Network with RGB as its invisible programmable layer.
Compatibility is not pitched as a feature; it is shipped as infrastructure, making Bitcoin smart.
Show more