Lightning in Exodus

Everything you need to know about using the Lightning Network inside your Exodus wallet!


In this article:


What is the Lightning Network?

The Lightning Network (LN) is a system for payments that operates as a second layer (L2) 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).

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.

Please note: 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.

What is the fee for depositing Bitcoin (BTC)?

As well as the 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 the 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 the 12-word 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 enable my Lightning wallet?

If your Lightning wallet doesn't appear automatically, you can enable it in Settings.

1
a) Tap on Dashboard, then b) Settings.

2
Find Lightning Network under Advanced and slide the toggle on.

3
Now you will see Lightning in your Dashboard


How do I deposit Bitcoin to my Lightning wallet?

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

1
a) Tap on the dashboard icon, then b) tap  Lightning.

2
Tap Deposit.
3
a) Tap Amount to select the amount of Bitcoin in BTC or USD or b) use the slider. c) Select the portfolio you want to withdraw the Bitcoin from. d) Check the information and tap  Add to deposit the Bitcoin into your Lightning wallet.

Please note: 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
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 you can withdraw Bitcoin from your Lightning wallet to your Exodus Bitcoin wallet.

1
a) Tap on the dashboard icon, then b) tap  Lightning.
2
Tap Withdraw.
3
a) Tap Amount to select the amount of Bitcoin in BTC or USD you wish to withdraw or b) use the slider. c) Select the portfolio you want to withdraw the Bitcoin to. d) Check the information and tap  Withdraw to withdraw the Bitcoin from your Lightning wallet to your Exodus Bitcoin wallet.

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

4
Your Bitcoin will show in your Exodus Bitcoin wallet once the deposit is confirmed on the blockchain.

How do I send funds to a Lightning invoice?

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

1
a) Tap on the dashboard 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 100 USD. A generated invoice will expire 24 hours after it is created.

1
a) Tap on the dashboard 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.

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


How do I view my Lightning transaction history?

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

1
a) Tap the dashboard 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.