No, Phoenix maintains the channel for users as an LSP. Splicing in and out from that channel also allows for on-chain activity without users needing to think about what sats they have in L1 or L2. The downside is that they charge some small fees for the convenience they offer, but I think they're reasonable.
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And fees lower than muun I believe. Need to explore phoenix wallet more. Thanks for sharing!
Phoenix is pretty nice. Been using it on the side for a couple years now. They also recently added a new kind of lightning address powered by bolt-12 invoices, but they warn that it might not work with all wallets to be able to send to it.
The major reasons I can't recommend it as a daily driver for newbies at present are 1. No way to connect it to Nostr apps for one-tap-zapping, 2. No way to reliably receive zaps to their new lightning address spec, 3. Even though they lanage your lightning channel for you, you have to know a thing or two about how liquidity works to avoid surprise on-chain fees when you run out of inbound.
Muun is a fake lightning wallet, Phoenix is definitely better!