🔁Auto-Swaps

Auto-Swaps in Alby Hub allow you to automatically convert funds on Lightning into on-chain Bitcoin once a certain threshold is met.

Why you should use it

• Reduce exposure to hot wallet balances

• Automatically secure funds in a on‑chain wallet (Hub on-chain wallet or cold storage)

• Maintain receiving capacity without manual intervention

You define rules (threshold, swap amount and destination) and Alby Hub takes care of performing the swaps when the conditions are met.

Use cases

• Liquidity Management If you have very one-sided flows (mostly incoming, e.g. merchants) and want to maintain your receiving capacity (i.e. inbound liquidity)

• Security & Risk management Automatically sweep exceeding funds to cold storage

Example

1. Open the wallet page of Alby Hub and click the "Swaps" button

2. Switch to the "Swap out" tab and click the button "Auto-Swaps" at the top right

3. Configure auto-swap

   1. Destination (bitcoin address or xpub)

   2. Spending Balance Threshold (the swap will be triggered by exceeding this amount)

   3. Swap Amount

4. Auto-Swaps will now be automatically performed, you'll see them show up in the transaction list

• Threshold: 3M sats

• Swap amount: 2.5M sats

• Destination: Cold storage wallet (bitcoin address or xpub)

Every time Lightning balance exceeds 3M sats, a new auto-swap is attempted with 2.5M sent to a bitcoin on-chain address, keeping a minimum of 0.5M sats in the hub for day-to-day usage