  In this paper, we study a three-node full-duplex network, where a base
station is engaged in simultaneous up- and downlink communication in the same
frequency band with two half-duplex mobile nodes. To reduce the impact of
inter- node interference between the two mobile nodes on the system capacity,
we study how an orthogonal side-channel between the two mobile nodes can be
leveraged to achieve full-duplex-like multiplexing gains. We propose and
characterize the achievable rates of four distributed full-duplex schemes,
labeled bin-and- cancel, compress-and-cancel, estimate-and-cancel and decode-
and-cancel. Of the four, bin-and-cancel is shown to achieve within 1 bit/s/Hz
of the capacity region for all values of channel parameters. In contrast, the
other three schemes achieve the near-optimal performance only in certain
regimes of channel values. Asymptotic multiplexing gains of all proposed
schemes are derived to show that the side-channel is extremely effective in
regimes where inter-node interference has the highest impact.
