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Thank you for nice writeup. I have been told that new versions "splicing" might or might not occur to you (on mobile Phoenix at least). Mine is not shrinking thou. Maybe channel is old and don't support slicing.
But why I interested about server version was one such cool feature, that I have not yet tested:
sudo -u bitcoin docker exec phoenixd bin/phoenixd --help

Usage: phoenixd [<options>]

Liquidity Options:
  --auto-liquidity=(off|2m|5m|10m)
                          Amount automatically requested when inbound liquidity
                          is needed (default: 2m)
...
is not about "shrinking", is about charging fees when users are depositing chunks of 20-50-100k and the channel have to splice-up. When you spend from that channel, but never deplete it totally, the channel is not "shrinking", it remains at the same size when was the last "splice-up" deposit.
I am talking to not be charged fees for every deposit.
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