  In this paper, we propose a technique for rebalancing link weights in
decentralized credit networks. Credit networks are peer-to-peer trust-based
networks that enable fast and inexpensive cross-currency transactions compared
to traditional bank wire transfers, which has led to their increasing
popularity and use. Although researchers have studied security of transactions
and privacy of users of such networks, and have invested significant efforts
into designing efficient routing algorithms for credit networks, comparatively
little work has been done in the area of {replenishing} credit links of users
in the network. Replenishing links at regular intervals in a credit network is
important to keep users solvent, the network viable with enough liquidity, and
to prevent transaction failures. This is achieved by a process called
{rebalancing} that enables a poorly funded user to create incoming as well as
outgoing credit links. We propose a system where a user with zero or no link
weights can create incoming links with existing, trusted users in the network,
in a procedure we call {balance transfer}, followed by creating outgoing links
to existing or new users that would like to join the network, a process we call
{bailout}. Both these processes together constitute our proposed rebalancing
mechanism. Our techniques would also serve to make the network more competitive
by offering users lower rates of interest, and enable users to earn routing
fees-based revenue by participating in high throughput transaction paths.
