diff --git a/src/services/lnd/liquidityProvider.ts b/src/services/lnd/liquidityProvider.ts
index 92a9fc1f..c780ff2a 100644
--- a/src/services/lnd/liquidityProvider.ts
+++ b/src/services/lnd/liquidityProvider.ts
@@ -69,6 +69,10 @@ export class LiquidityProvider {
         })
     }
 
+    GetLatestMaxWithdrawable = () => {
+        return this.latestMaxWithdrawable || 0
+    }
+
     CheckUserState = async () => {
         const res = await this.client.GetUserInfo()
         if (res.status === 'ERROR') {
diff --git a/src/services/lnd/lnd.ts b/src/services/lnd/lnd.ts
index 2930ae3a..67063a14 100644
--- a/src/services/lnd/lnd.ts
+++ b/src/services/lnd/lnd.ts
@@ -269,11 +269,11 @@ export default class {
         return res.response
     }
 
-    async NewInvoice(value: number, memo: string, expiry: number): Promise<Invoice> {
+    async NewInvoice(value: number, memo: string, expiry: number, useProvider = false): Promise<Invoice> {
         this.log("generating new invoice for", value, "sats")
         await this.Health()
         const shouldUseLiquidityProvider = await this.ShouldUseLiquidityProvider({ action: 'receive', amount: value })
-        if (shouldUseLiquidityProvider) {
+        if (shouldUseLiquidityProvider || useProvider) {
             const invoice = await this.liquidProvider.AddInvoice(value, memo)
             return { payRequest: invoice }
         }
@@ -300,7 +300,7 @@ export default class {
         const r = res.response
         return { local: r.localBalance ? Number(r.localBalance.sat) : 0, remote: r.remoteBalance ? Number(r.remoteBalance.sat) : 0 }
     }
-    async PayInvoice(invoice: string, amount: number, feeLimit: number): Promise<PaidInvoice> {
+    async PayInvoice(invoice: string, amount: number, feeLimit: number, useProvider = false): Promise<PaidInvoice> {
         if (this.outgoingOpsLocked) {
             this.log("outgoing ops locked, rejecting payment request")
             throw new Error("lnd node is currently out of sync")
@@ -308,7 +308,7 @@ export default class {
         await this.Health()
         this.log("paying invoice", invoice, "for", amount, "sats")
         const shouldUseLiquidityProvider = await this.ShouldUseLiquidityProvider({ action: 'spend', amount })
-        if (shouldUseLiquidityProvider) {
+        if (shouldUseLiquidityProvider || useProvider) {
             const res = await this.liquidProvider.PayInvoice(invoice)
             return { feeSat: res.network_fee + res.service_fee, valueSat: res.amount_paid, paymentPreimage: res.preimage }
         }
diff --git a/src/services/main/index.ts b/src/services/main/index.ts
index da2af924..7807509e 100644
--- a/src/services/main/index.ts
+++ b/src/services/main/index.ts
@@ -49,7 +49,7 @@ export default class {
         this.liquidityManager = new LiquidityManager(this.settings.liquiditySettings, this.storage, this.liquidProvider, this.lnd)
         this.metricsManager = new MetricsManager(this.storage, this.lnd)
 
-        this.paymentManager = new PaymentManager(this.storage, this.lnd, this.settings, this.addressPaidCb, this.invoicePaidCb)
+        this.paymentManager = new PaymentManager(this.storage, this.lnd, this.settings, this.liquidityManager, this.addressPaidCb, this.invoicePaidCb)
         this.productManager = new ProductManager(this.storage, this.paymentManager, this.settings)
         this.applicationManager = new ApplicationManager(this.storage, this.settings, this.paymentManager)
         this.appUserManager = new AppUserManager(this.storage, this.settings, this.applicationManager)
diff --git a/src/services/main/liquidityManager.ts b/src/services/main/liquidityManager.ts
index 80c75321..cf2d2b37 100644
--- a/src/services/main/liquidityManager.ts
+++ b/src/services/main/liquidityManager.ts
@@ -3,6 +3,7 @@ import { LiquidityProvider } from "../lnd/liquidityProvider.js"
 import LND from "../lnd/lnd.js"
 import { FlashsatsLSP, LoadLSPSettingsFromEnv, LSPSettings, OlympusLSP, VoltageLSP } from "../lnd/lsp.js"
 import Storage from '../storage/index.js'
+import { defaultInvoiceExpiry } from "../storage/paymentStorage.js"
 export type LiquiditySettings = {
     lspSettings: LSPSettings
     liquidityProviderPub: string
@@ -32,7 +33,26 @@ export class LiquidityManager {
         this.voltageLSP = new VoltageLSP(settings.lspSettings, lnd, liquidityProvider)
         this.flashsatsLSP = new FlashsatsLSP(settings.lspSettings, lnd, liquidityProvider)
     }
-    beforeInvoiceCreation = async () => { }
+    onNewBlock = async () => {
+        const balance = await this.liquidityProvider.GetLatestMaxWithdrawable()
+        const { remote } = await this.lnd.ChannelBalance()
+        if (remote > balance) {
+            this.log("draining provider balance to channel")
+            const invoice = await this.lnd.NewInvoice(balance, "liqudity provider drain", defaultInvoiceExpiry)
+            const res = await this.liquidityProvider.PayInvoice(invoice.payRequest)
+            this.log("drained provider balance to channel", res.amount_paid)
+        }
+    }
+
+    beforeInvoiceCreation = async (amount: number): Promise<'lnd' | 'provider'> => {
+        const { remote } = await this.lnd.ChannelBalance()
+        if (remote > amount) {
+            this.log("channel has enough balance for invoice")
+            return 'lnd'
+        }
+        this.log("channel does not have enough balance for invoice,suggesting provider")
+        return 'provider'
+    }
     afterInInvoicePaid = async () => {
         const existingOrder = await this.storage.liquidityStorage.GetLatestLspOrder()
         if (existingOrder) {
@@ -67,6 +87,14 @@ export class LiquidityManager {
         this.log("no channel requested")
     }
 
-    beforeOutInvoicePayment = async () => { }
+    beforeOutInvoicePayment = async (amount: number): Promise<'lnd' | 'provider'> => {
+        const balance = await this.liquidityProvider.GetLatestMaxWithdrawable()
+        if (balance > amount) {
+            this.log("provider has enough balance for payment")
+            return 'provider'
+        }
+        this.log("provider does not have enough balance for payment, suggesting lnd")
+        return 'lnd'
+    }
     afterOutInvoicePaid = async () => { }
 }
\ No newline at end of file
diff --git a/src/services/main/paymentManager.ts b/src/services/main/paymentManager.ts
index 647f4fd8..77144209 100644
--- a/src/services/main/paymentManager.ts
+++ b/src/services/main/paymentManager.ts
@@ -16,6 +16,7 @@ import { AddressReceivingTransaction } from '../storage/entity/AddressReceivingT
 import { UserTransactionPayment } from '../storage/entity/UserTransactionPayment.js'
 import { Watchdog } from './watchdog.js'
 import { LiquidityProvider } from '../lnd/liquidityProvider.js'
+import { LiquidityManager } from './liquidityManager.js'
 interface UserOperationInfo {
     serial_id: number
     paid_amount: number
@@ -47,11 +48,13 @@ export default class {
     invoicePaidCb: InvoicePaidCb
     log = getLogger({ component: "PaymentManager" })
     watchDog: Watchdog
-    constructor(storage: Storage, lnd: LND, settings: MainSettings, addressPaidCb: AddressPaidCb, invoicePaidCb: InvoicePaidCb) {
+    liquidityManager: LiquidityManager
+    constructor(storage: Storage, lnd: LND, settings: MainSettings, liquidityManager: LiquidityManager, addressPaidCb: AddressPaidCb, invoicePaidCb: InvoicePaidCb) {
         this.storage = storage
         this.settings = settings
         this.lnd = lnd
         this.watchDog = new Watchdog(settings.watchDogSettings, lnd, storage)
+        this.liquidityManager = liquidityManager
         this.addressPaidCb = addressPaidCb
         this.invoicePaidCb = invoicePaidCb
     }
@@ -121,7 +124,8 @@ export default class {
         if (user.locked) {
             throw new Error("user is banned, cannot generate invoice")
         }
-        const res = await this.lnd.NewInvoice(req.amountSats, req.memo, options.expiry)
+        const use = await this.liquidityManager.beforeInvoiceCreation(req.amountSats)
+        const res = await this.lnd.NewInvoice(req.amountSats, req.memo, options.expiry, use === 'provider')
         const userInvoice = await this.storage.paymentStorage.AddUserInvoice(user, res.payRequest, options)
         const appId = options.linkedApplication ? options.linkedApplication.app_id : ""
         this.storage.eventsLog.LogEvent({ type: 'new_invoice', userId: user.user_id, appUserId: "", appId, balance: user.balance_sats, data: userInvoice.invoice, amount: req.amountSats })
@@ -201,8 +205,9 @@ export default class {
         const routingFeeLimit = this.lnd.GetFeeLimitAmount(payAmount)
         await this.storage.userStorage.DecrementUserBalance(userId, totalAmountToDecrement + routingFeeLimit, invoice)
         const pendingPayment = await this.storage.paymentStorage.AddPendingExternalPayment(userId, invoice, payAmount, linkedApplication)
+        const use = await this.liquidityManager.beforeOutInvoicePayment(payAmount)
         try {
-            const payment = await this.lnd.PayInvoice(invoice, amountForLnd, routingFeeLimit)
+            const payment = await this.lnd.PayInvoice(invoice, amountForLnd, routingFeeLimit, use === 'provider')
 
             if (routingFeeLimit - payment.feeSat > 0) {
                 this.log("refund routing fee", routingFeeLimit, payment.feeSat, "sats")
diff --git a/src/services/main/watchdog.ts b/src/services/main/watchdog.ts
index 257e2614..77fd1449 100644
--- a/src/services/main/watchdog.ts
+++ b/src/services/main/watchdog.ts
@@ -1,6 +1,7 @@
 import { EnvCanBeInteger } from "../helpers/envParser.js";
 import FunctionQueue from "../helpers/functionQueue.js";
 import { getLogger } from "../helpers/logger.js";
+import { LiquidityProvider } from "../lnd/liquidityProvider.js";
 import LND from "../lnd/lnd.js";
 import { ChannelBalance } from "../lnd/settings.js";
 import Storage from '../storage/index.js'
@@ -20,6 +21,7 @@ export class Watchdog {
     latestIndexOffset: number;
     accumulatedHtlcFees: number;
     lnd: LND;
+    liquidProvider: LiquidityProvider;
     settings: WatchdogSettings;
     storage: Storage;
     latestCheckStart = 0
@@ -30,6 +32,7 @@ export class Watchdog {
         this.lnd = lnd;
         this.settings = settings;
         this.storage = storage;
+        this.liquidProvider = lnd.liquidProvider
         this.queue = new FunctionQueue("watchdog_queue", () => this.StartCheck())
     }
 
@@ -76,7 +79,8 @@ export class Watchdog {
         getLogger({ component: "debugLndBalancev3" })({ w: walletBalance, c: channelsBalance, u: usersTotal, f: this.accumulatedHtlcFees })
         const totalLightningBalanceMsats = (channelsBalance.localBalance?.msat || 0n) + (channelsBalance.unsettledLocalBalance?.msat || 0n)
         const totalLightningBalance = Math.ceil(Number(totalLightningBalanceMsats) / 1000)
-        return Number(walletBalance.confirmedBalance) + totalLightningBalance
+        const providerBalance = this.liquidProvider.GetLatestMaxWithdrawable()
+        return Number(walletBalance.confirmedBalance) + totalLightningBalance + providerBalance
     }
 
     checkBalanceUpdate = (deltaLnd: number, deltaUsers: number) => {