Not if you _swap_ out using a swapping service like [boltz](https://boltz.exchange/). That means you pay a lightning invoice and the receiver sends you bitcoin onchain.

If you pay a bitcoin address using your Phoenix wallet, you are _splicing_ out. That shrinks your channel, yes.

Yup. 

Will defer to Darth here, since he def knows more than me in this area

I believe this is the case too.

Basically onchain transactions expand and shrink the channel.

Receive BTC from onchain = channel capacity grows

Send BTC to onchain = channel shrinks

nichro

Um, correct me if I'm wrong here Darth, but I do believe they shrink your channel if you spend on-chain/swap out