JIT channels are virtual LN channels hosted by a service provider. When the first payment to the channel is received, the service provider creates a funding transaction and adds the payment to it, creating a normal channel. This allows new user to begin receiving funds over LN immediately.
JIT channels should not be confused with JIT routing, which is a technique for rebalancing existing channels to allow accepting payments that might naively need to be rejected.
Primary code and documentation
Optech newsletter and website mentions
- LDK #2319 allows underfunding HTLCs in support of JIT channel creation
- Proposal to extend BOLT11 invoices to allow requesting prepayment for submarine swaps
- Request for feedback on proposed specifications for LSPs, including LSPS2: JIT channels