Lightning in Exodus

Everything you need to know about using the Lightning Network in Exodus Mobile!

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What is the Lightning Network?

The Lightning Network (LN) is a system for payments that operates as a layer 2 protocol for the Bitcoin (BTC) network. Lightning Network aims to provide fast transactions between participating nodes, as well as better efficiency and scalability.

The Lightning Network is made of multiple payment channels that process off-chain transactions, which means the transactions are made outside of the Bitcoin network. Because of this, fees are reduced and transactions are nearly instant.

Transactions on the Lightning Network are only recorded on the Bitcoin network when needed, reducing the amount of information the Bitcoin network has to process.

How does the Lightning wallet work in Exodus?

Currently, the Lightning wallet is only available on Exodus Mobile.

To make fast and easy transactions on the Lightning Network possible in Exodus, and to provide ease of use, the Lightning wallet in the Exodus app is provided by a custodial third-party API provider, Wallet of Satoshi (WOS).

Wallet of Satoshi is a third-party platform. As such, Exodus cannot guarantee the performance of its products/services or that the steps shown and the information provided will always be accurate.

For more information on Wallet of Satoshi, you can visit their website at walletofsatoshi.com, and read their Disclosure Document and Privacy Policy.

With the Exodus Lightning wallet, it is fast and easy to send and receive Bitcoin on the Lightning Network. You can fund your Exodus Lightning wallet by depositing Bitcoin from your Exodus Bitcoin wallet. You can also withdraw funds from the Lightning wallet to your Exodus wallet.

Depositing Bitcoin to your Lightning wallet and withdrawing Bitcoin from your Lightning wallet will create on-chain transactions, which will incur network fees.

What is the balance limit?

Currently, the Lightning balance is limited to $100 USD. To increase your limit, please see How do I increase my lightning balance limit.

What is the fee for depositing Bitcoin (BTC)?

As well as the network transaction fee, there is a 0.3% fee for depositing Bitcoin.

What is the fee for withdrawing Bitcoin (BTC)?

As well as the transaction fee, there is a 0.3% fee for withdrawing Bitcoin, plus a fee of approximately 5,000 sats.

What are the fees for sending Lightning transactions?

As well as the fee displayed in the Network Fee field, there might be a variable routing fee applied at the time of sending a Lightning payment. This fee is passed on to the nodes routing the payment and is not kept by Wallet of Satoshi or Exodus.

Furthermore, in addition to the displayed Network Fee, there is a 0.3% fee for emptying your Lightning network balance by sending all of your BTC through the Lightning network.

Can my Lightning wallet be restored with my 12-word secret recovery phrase?

Yes! Your Lightning private key is derived from your 12-word secret recovery phrase, and your Lightning wallet can be restored using your secret recovery phrase.

What are the benefits of using the Lightning Network?

Benefits of using the Lightning Network include low fees, micropayments, lightning-fast transactions, and privacy.

Every Bitcoin transaction needs to be verified on the blockchain, so a network fee will incur for every Bitcoin transaction that takes place. The Lightning Network accumulates transactions, which reduces the number of transactions made on the Bitcoin network and results in reduced fees and almost instant transactions.

Lightning transactions also offer additional privacy because they are not recorded on the blockchain, and Lightning nodes cannot determine the source or final destination of transactions.

How do I deposit Bitcoin to my Lightning wallet?

Here is how to deposit Bitcoin from your Exodus Bitcoin wallet to the Lightning wallet.

1
In Exodus Mobile, a) tap on the Profile icon, then b) tap Lightning.

2
Tap Deposit.

3

Use the following options to select the amount you want to deposit to your Lightning wallet:

  • a) Tap Amount to select the amount of Bitcoin in BTC or USD
  • Or b) use the slider to select an amount
  • c) Check the amount you're depositing
  • d) Select the portfolio you want to deposit BTC from

Depositing Bitcoin to your Lightning wallet from your Exodus Bitcoin wallet is an on-chain transaction and will incur a transaction fee and a deposit fee.

4
If you would like to view the network fee or set a custom transaction fee for your BTC deposit, tap Advanced.

If you want to set a custom fee for your deposit, use the slider to select your fee:

  • a) Slide it to the left to pay a lower fee (will confirm slower)
  • b) Slide it to the right to pay a higher fee (will confirm faster)
  • c) You can also manually input your custom fee by clicking the pencil icon

To set custom fees, you will first need to make sure that Bitcoin custom fees are enabled. Follow steps 1 and 2 in the guide on how to enable custom Bitcoin fees.

If you set your fee too low, your transaction might take a long time to confirm or get stuck. To learn more, jump to: What happens if I set my custom fees too low?

5
When you're ready, tap Add Funds.

6
Your Bitcoin will show in your Lightning wallet once the deposit is confirmed on the blockchain.

How do I withdraw Bitcoin from my Lightning wallet?

Here is how to withdraw Bitcoin from your Lightning wallet to your Exodus Bitcoin wallet.

1
In Exodus Mobile, a) tap on the Profile icon, then b) tap Lightning.

2
Tap Withdraw.

3

Use the following options to select the amount you want to withdraw from your Lightning wallet:

  • a) Tap Amount to select the amount of Bitcoin in BTC or USD
  • Or b) use the slider to select an amount
  • c) Check the amount you're withdrawing
  • d) Select the portfolio you want to withdraw BTC to

Withdrawing Bitcoin from your Lightning wallet to your Exodus Bitcoin wallet is an on-chain transaction and will incur a transaction fee and a withdrawal fee.

4
If you would like to view the network fee or set a custom transaction fee for your BTC withdrawal, tap Advanced.

If you want to set a custom fee for your withdrawal, use the slider to select your fee:

  • a) Slide it to the left to pay a lower fee (will confirm slower)
  • b) Slide it to the right to pay a higher fee (will confirm faster)
  • c) You can also manually input your custom fee by clicking the pencil icon

To set custom fees, you will first need to make sure that Bitcoin custom fees are enabled. Follow steps 1 and 2 in the guide on how to enable custom Bitcoin fees.

If you set your fee too low, your transaction might take a long time to confirm or get stuck. To learn more, jump to: What happens if I set my custom fees too low?

5
When you're ready, tap Withdraw funds.

6
Your Bitcoin will show in your Exodus Bitcoin wallet once the withdrawal is confirmed on the blockchain.

What happens if I set my custom fee too low?

You can set custom fees when you deposit or withdraw Bitcoin (BTC) from your Lightning wallet in Exodus.

If you set a custom fee that is too low, your transaction might take a long time to confirm, or it could get stuck pending on the blockchain.

If you set your custom fee too low, you will see this warning in your wallet:

How do I send funds to a Lightning invoice?

Here is how to send Bitcoin on the Lightning Network to a Lightning invoice.

1
In Exodus Mobile, a) tap on the Profile icon, then b) tap Lightning.

2
Tap Send.

3
Enter the Lightning invoice you wish to send funds to. a) If you copied the invoice to your clipboard you can tap to paste the invoice or long-press to manually type it in (which is not recommended). b) You can also tap the QR scanner to scan the Lightning invoice QR code.

4
a) Enter the amount of Bitcoin in BTC or USD you wish to send. If the invoice you are sending to has an amount specified this field will autofill. Then b) tap Next.

5
a) Please check the amount, fee, and invoice number. To send the transaction b) Slide to Transfer.

6
And done! Your BTC Lightning transaction has been sent.

How do I generate a Lightning invoice to receive funds?

How to generate a Lightning invoice to receive funds in your Lightning wallet.

It is not possible to generate an invoice if your Lightning balance is more than 1000 USD. A generated invoice will expire 24 hours after it is created.

1
In Exodus Mobile, a) tap on the Profile icon, then b) tap Lightning.

2
Tap Receive.

3
Your invoice will now be shown. To receive funds through the Lightning Network you can either, a) use the QR code, b) tap to copy the Lightning invoice, or c) tap Share to share the Lightning invoice.

4
If you wish, you can specify the amount you want to receive and add a note.

The invoice number and QR code might change after adding a note or entering an amount. The invoice will expire after 24 hours.

What is LNURL?

LNURL is a protocol to simplify interactions between Lightning wallets. In Exodus, the LNURL protocol allows you to send payments using LNURL-pay and receive payments using LNURL-withdraw.

What is LNURL-pay?

Typically, if you would like to send a payment over the Lightning network, you'll first need an invoice from the recipient. But unlike traditional Bitcoin receive addresses, Lightning invoices expire after a certain amount of time or after receiving Lightning funds. Lightning invoices are single-use.

For example, if you wanted to send your favorite content creator a tip, how would you get a new invoice for the payment without contacting them directly? The content creator must create a unique Lightning invoice whenever somebody wants to send a tip. This is an excellent example of a problem that LNURL can solve.

With LNURL, the receiver can have a permanent LNURL receive address that does not expire. When a wallet with LNURL support scans the LNURL, it automatically receives the information needed to send Lightning funds to the receiver.

How do I use LNURL-pay in Exodus?

In Exodus, you can send payments to other Lightning wallets using LNURL. You can send to LNURL either by scanning the LNURL QR code or by entering the LNURL address in text format (begins with LNURL), or the email-like LNURL format.

The process of sending funds to LNURL is the same as sending funds to a Lightning invoice. To send funds to an LNURL address, follow the steps in the section: How do I send funds to a Lightning invoice.

Currently, you can't generate an LNURL address in Exodus.

What is LNURL-withdraw?

LNURL-withdraw is another protocol to simplify payments on the Lightning network. Let's look at an example to understand how LNURL-withdraw works.

What if your employer wants to pay you and all employees using the Lightning network? Your employer would have to request an invoice from each person. Remember, a Lightning payment requires a newly generated invoice from the receiving wallet.

This is where LNURL-withdraw comes in. LNURL-withdraw allows the sender, the employer in our example, to generate LNURL-withdraw vouchers for a predefined amount. Once you scan the LNURL voucher, the funds are sent to your Lightning wallet.

How do I receive LNURL-withdraw payments in Exodus?

Your Exodus wallet allows you to receive LNURL-withdraw payments.

Currently, you can't generate LNURL-withdraw vouchers from your Exodus wallet.

Here is how you can receive a LNURL-withdraw payment in your Lightning wallet.

1
In Exodus Mobile, a) tap the Profile icon, then b) tap Lightning.

2
If you do not have any Bitcoin in your Lightning wallet, tap Receive.

3
Next, tap the QR code icon in the top right-hand corner.

4
If your Lightning wallet is already funded with some Bitcoin, tap Scan.

5
Next, scan the LNURL-withdraw QR code.

6
a) Review the amount and b) confirm by tapping Receive.

7
Your wallet will process the LNURL withdrawal request.

8
Once the sending wallet has received the invoice, the payment will be made to your Lightning wallet. To view your new balance, tap Continue to Your Wallet.

How do I view my Lightning transaction history?

Here is how you can view the transaction history for your Lightning wallet.

1
In Exodus Mobile, a) tap the Profile icon, then b) tap Lightning.

2
In the top right corner, tap the History icon.

3
You can view your Lightning transaction history and tap on transactions for more information.

How do I increase my Lightning balance limit?

These steps will show you how to increase your Lightning balance limit from $100 to $5,000 USD worth of Bitcoin (BTC).

Your Lightning wallet is powered by Wallet of Satoshi (WOS) which is a custodial Lightning provider. If you run into any issues, you will need to contact WOS directly by emailing them at [email protected].

You can find further details in the Terms & Conditions before you agree.

1
In Exodus Mobile, a) tap on the Profile icon, then b) tap Settings.

2
Tap Higher limits (Lightning Network).

3
a) Read the Terms & Conditions, then if you agree, b) tap Accept & Continue.

Exodus is not affiliated with any third-party platforms, external links, or any other third-party resources mentioned in this article. As such, Exodus cannot guarantee the performance of third-party products or services, or that the steps shown and the information provided will always be accurate.