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@martinsaposnic martinsaposnic commented Jun 9, 2025

The feature

lightningdevkit/ldk-node#479

Currently, our LSPS2 service implementation only supports the lsp_trusts_client model, which means that "If the client does not claim the payment, and the funding transaction confirms, then the LSP will have its funds locked in a channel that was not paid for."

On a client_trusts_lsp model, the LSP will NOT broadcast the funding transaction until the client claims the payment.

The plan:

(This plan was validated and acknowledged by @tnull in private). There are differences between the plan and the implementation, but it roughly describes the approach.

  • LSPS2 Process & Events:
These are handled the same way as before. No changes here.

  • When the OpenChannel event is emitted, ldk-node calls create_channel as usual. The key difference is: If client_trusts_lsp = true, after emitting the OpenChannel event, we start tracking the HTLC that our client will eventually claim.

  • Funding Transaction Broadcast Logic:
The batch_funding_transaction_generated_intern function decides whether the funding transaction should be broadcast automatically. There are two existing funding types:

    • Checked: Validates and auto-broadcasts.
    • Unchecked: Skips validation and requires manual broadcast.

    I will introduce a third type:

    • CheckedManualBroadcast: Validates, but sets manual broadcast.
  • With this:

    • If client_trusts_lsp = false, ldk-node uses funding_transaction_generated (default behavior).
    • If client_trusts_lsp = true, it uses funding_transaction_generated_with_delayed_broadcast, which sets the funding type to CheckedManualBroadcast (validates but sets manual broadcast).
  • lsps2_service on
ldk-node will now interact with lsps2_service on rust-lightning in two new key moments:

    • When it receives the FundingTxBroadcastSafe event, it notifies lsps2_service on rust-lightning, which marks a flag as true.
    • When the client claims the HTLC (::PaymentClaimed), ldk-node notifies lsps2_service on rust-lightning, which marks another flag as true.
    • Once both flags are true, we are ok to proceed to broadcast the funding transaction.

Changes:

  • a new FundingType called CheckedManualBroadcast, which behaves the same as the FundingType::Checked, but it returns false when is_manual_broadcast is called. Essentially, it validates everything (same as the FundingType::Checked) but it does not automatically broadcast (same as FundingType::Unchecked)
  • new public function funding_transaction_generated_manual_broadcast on channel_manager. Uses FundingType::CheckedManualBroadcast, which validates but does not automatically broadcast
  • new public function channel_needs_manual_broadcast. This is used by ldk-node to know if funding_transaction_generated or funding_transaction_generated_manual_broadcast should be called when FundingGenerationReady event is triggered
  • new public function store_funding_transaction. This is used by ldk-node when the funding transaction is created. We need to store it because the broadcast of the funding transaction may be deferred.
  • new public function funding_tx_broadcast_safe. This is used by ldk-node when the FundingTxBroadcastSafe event is triggered
  • a new enum TrustModel is introduced, which depending on the trust model that the user chose, it will have a few properties to track:
    • if the client claimed the htlc,
    • the status of funding_tx_broadcast_safe.
    • hold the funding_tx for later use
  • This new TrustModel enum will be created when the OpenChannel is triggered, and will be saved in the OutboundJITChannelState
  • Every time the TrustModel changes values, the function broadcast_transaction_if_applies is called, so it checks if it's time to broadcast the funding transaction
  • An unsafe_broadcast_transaction function is also introduced on channel_manager, which will be called by broadcast_transaction_if_applies from the lsps2/service

LDK Node integration

In this PR lightningdevkit/ldk-node#572 on ldk-node, you can see that 2 tests are created that demonstrates the funcionality described above.

  • First test:

client_trusts_lsp=true

In the test, receive_via_jit_channel_manual_claim is called, the mempool is checked to assert that the funding transaction was not broadcasted yet (it should not because client_trusts_lsp=true, and the client has not claimed the htlc yet).

Then the client calls claim_for_hash, and the mempool is checked again, and now the funding transaction should be there

  • Second test:

client_trusts_lsp=false

In the test, receive_via_jit_channel_manual_claim is called, the mempool is checked to assert that the funding transaction was broadcasted (because the LSP trusts the client), even though the client has not claimed the htlc yet. In this case, the LSP was tricked, and it will have its funds locked in a channel that was not paid for.

Side note: for the tests to work I had to create a new receive_via_jit_channel_manual_claim so the client can manually claim the htlc using the claim_for_hash.

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ldk-reviews-bot commented Jun 9, 2025

👋 Thanks for assigning @TheBlueMatt as a reviewer!
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@tnull tnull self-requested a review June 9, 2025 19:17
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codecov bot commented Jun 9, 2025

Codecov Report

❌ Patch coverage is 87.23404% with 42 lines in your changes missing coverage. Please review.
✅ Project coverage is 88.61%. Comparing base (9514637) to head (a1eef19).
⚠️ Report is 6 commits behind head on main.

Files with missing lines Patch % Lines
lightning-liquidity/src/lsps2/service.rs 85.81% 39 Missing and 2 partials ⚠️
lightning-liquidity/src/manager.rs 93.33% 1 Missing ⚠️
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  Lines      134374   134666     +292     
  Branches   134374   134666     +292     
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+ Misses      12604    12558      -46     
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A few extra concerns:

HTLCs routed over 0-conf channels might hit CLTV timeouts if the channel should be confirmed but isn’t yet, so if the user takes forever to claim the payment, then there could be some trouble there.

Also, I'm not sure if it would be better to have new possible states to explicitly model the idea of having sent the channel_ready but the funding_tx is not broadcasted yet. Also sharing the trust_model state between 4 of the 5 possible states is not something I'm convinced. I have a few different options for this, but I'm open to comments and suggestions

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Thanks for looking into this.

This generally makes sense to me, although we should really work out how we'd deal with operational channels for which we withhold the funding transaction broadcast.

HTLCs routed over 0-conf channels might hit CLTV timeouts if the channel should be > confirmed but isn’t yet, so if the user takes forever to claim the payment, then there
could be some trouble there.

Yes. IMO this means that we need to introduce proper (read: clean API, and tested) support for 'hosted channels', i.e., channels that are operational even though the funding transaction hasn't been confirmed yet. Not sure if @TheBlueMatt has an opinion here?

Also, I'm not sure if it would be better to have new possible states to explicitly model > the idea of having sent the channel_ready but the funding_tx is not broadcasted yet. > Also sharing the trust_model state between 4 of the 5 possible states is not > something I'm convinced. I have a few different options for this, but I'm open to > comments and suggestions

Yeah, as mentioned in the comments, it would def. be preferable if we could avoid the many clones. Also it's overall a lot of boilerplate for just three fields handed through, maybe there is a simpler approach?

use alloc::string::{String, ToString};
use alloc::vec::Vec;
use bitcoin::Transaction;
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nit: Let's move this down to the other bitcoin types.


fn new(client_trusts_lsp: bool) -> Self {
if client_trusts_lsp {
return TrustModel::ClientTrustsLsp {
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nit: Please avoid these explicit returns here.

if client_trusts_lsp {
return TrustModel::ClientTrustsLsp {
funding_tx_broadcast_safe: false,
htlc_claimed: false,
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nit: Maybe payment_claimed to align with the event type?

*self = OutboundJITChannelState::PendingChannelOpen {
payment_queue,
opening_fee_msat: *opening_fee_msat,
trust_model: trust_model.clone(),
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Would be good if we could find a way to avoid these clones. Given that these are just two bools and the transaction option, I also wonder if it's indeed worth all the boilerplate, or if it might suffice to have these fields live on the state/channel objects directly.

Ok(())
}

/// Called by ldk-node when the funding transaction is safe to broadcast.
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Note that in this context we don't know where this will be used, so we shouldn't assume LDK Node is the only consumer of this API.

/// broadcast it manually.
///
/// Used in LSPS2 on a client_trusts_lsp model
CheckedManualBroadcast(Transaction),
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nit: Let's move to the second positition here and elsewhere.

/// # Warning
/// Improper use of this method could lead to channel state inconsistencies.
/// Ensure the transaction being broadcast is valid and expected by LDK.
pub fn unsafe_broadcast_transaction(&self, tx: &Transaction) {
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Hmm, I'm not sure if this would qualify for the unsafe_ prefix and the Warning. It's really just the normal flow, just that we leave broadcasting to the user instead of using the BroadcasterInterface.

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we leave broadcasting to the user instead of using the BroadcasterInterface

actually, I think it would be good to emit an event ClientPaidSoPleaseBroadcastTransactionNow instead of doing it automatically, or even better, reuse the LdkEvent::FundingTxBroadcastSafe, which is literally the event used to let the user know they should manually broadcast a transaction. I will investigate if that's possible


/// A struct for configuring parameters for routing the payment.
#[derive(Clone, Copy)]
#[derive(Clone, Copy, Debug)]
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This seems unrelated?

bitcoin = { version = "0.32.2", default-features = false }
futures = { version = "0.3", optional = true }
esplora-client = { version = "0.12", default-features = false, optional = true }
esplora-client = { version = "0.11", default-features = false, optional = true }
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Please don't include unrelated changes here.

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tnull commented Jul 24, 2025

This needs a rebase now that #3662 landed.

@martinsaposnic martinsaposnic force-pushed the client-trusts-lsp branch 3 times, most recently from 8d7da60 to 82a4bc1 Compare August 12, 2025 18:11
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Please let me know if/when you deem this ready for review!

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Please let me know if/when you deem this ready for review!

I'm close, I have a half baked functional test. I want to finish that before putting this as ready for review

@martinsaposnic martinsaposnic force-pushed the client-trusts-lsp branch 3 times, most recently from fb259f4 to 6412945 Compare August 18, 2025 20:38
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ok, this should be ready now @tnull

all comments are addressed in fixup commits.

also I wrote a full end to end test that covers the client_trusts_lsp flow (directly in this repo, not in ldk-node, which was not possible before! 😄 ) . also added some documentation that explains how the client_trusts_lsp flow works.

thanks!

@martinsaposnic martinsaposnic marked this pull request as ready for review August 18, 2025 20:45
@ldk-reviews-bot ldk-reviews-bot requested a review from jkczyz August 18, 2025 20:45
@TheBlueMatt TheBlueMatt removed the request for review from jkczyz August 18, 2025 20:54
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#3838 (comment)

Should we not replay the spends if the monitor was already closed in this case? Basically if we hit a channel-closing-needed case (where we call generate_claimable_outpoints_and_watch_outputs and then ignore the result) while the funding tx hasn't been seen, and then later the funding tx is seen, we should presumably immediately broadcast the commitment transaction and any spends of it.

just pushed a fixup addressing this comment ^^

linting is failing due to unrelated-to-this-pr reasons

let me know what you think, thanks!!

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Sorry for the delay. One more comment on channelmonitor.rs but maybe lets just take the second commit (and fixups) and move it to another PR so we can iterate on it separately? The first commit should be ready to go and shouldn't be held up on this.

/// `true` when absent during upgrade so holder broadcasts aren't gated unexpectedly.
funding_seen_onchain: bool,
/// Tracks whether manual-broadcasting was requested before the funding transaction appeared on-chain.
manual_broadcast_pending: bool,
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Hmm, I feel like we can just use holder_tx_signed rather than adding a new bool.

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I dropped the two commits related to channelmonitor and moved them to #4109

funding_transaction_generated_manual_broadcast now has a comment that will become true once #4109 is merged, I didn't want to make #4109 depend on this PR, mainly for personal comfort reasons. let me know if that works

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I rebased with main and added this so CI passes

diff --git a/lightning-background-processor/src/lib.rs b/lightning-background-processor/src/lib.rs
index 77bdb4599..ee6922369 100644
--- a/lightning-background-processor/src/lib.rs
+++ b/lightning-background-processor/src/lib.rs
@@ -426,6 +426,8 @@ pub const NO_LIQUIDITY_MANAGER: Option<
                                C = &dyn chain::Filter,
                                TimeProvider = dyn lightning_liquidity::utils::time::TimeProvider,
                                TP = &dyn lightning_liquidity::utils::time::TimeProvider,
+                               BroadcasterInterface = dyn BroadcasterInterface,
+                               T = &dyn BroadcasterInterface,
                        > + Send
                        + Sync,
        >,

// collected. Before that happens, LDK may force-close the not‑yet‑funded channel
// (for example when a forwarded HTLC nears expiry). Broadcasting funding after a
// close could then confirm the commitment and trigger unintended on‑chain handling.
// To avoid this, we check ChannelManager’s view (`is_usable`) before broadcasting.
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This comment is outdated now, we check is_channel_ready. Can we also change the is_usable variable to avoid confusion now that we check the other flag?

/// to broadcast the funding transaction yourself in this flow.
///
/// [`set_funding_tx_broadcast_safe`]: Self::set_funding_tx_broadcast_safe
pub fn store_funding_transaction(
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I wonder if we also need a way to abort the flow if we get a DiscardFunding event?

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we have a channel_open_abandoned which I'm tempted on using, but that particular method only works before the OpenChannel event is issued.

not sure what to expect or what to communicate if a DiscardFunding event is received after a OpenChannel event is emitted but before the funding_tx is broadcasted. would we need to force close the jit channel too? send a new event so the user force closes? @tnull

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not sure what to expect or what to communicate if a DiscardFunding event is received after a OpenChannel event is emitted but before the funding_tx is broadcasted. would we need to force close the jit channel too? send a new event so the user force closes? @tnull

Hmm, yeah, it's probably fine for now as we'd get DiscardFunding after the channel has been closed. It probably means that we need to retry the channel open, i.e., have to reset via channel_open_failed.

@TheBlueMatt TheBlueMatt requested a review from tnull September 23, 2025 20:20
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Feel free to squash.

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It seems this needs rebase now that we landed the LSPS persistence logic, sorry about that.

@martinsaposnic martinsaposnic force-pushed the client-trusts-lsp branch 5 times, most recently from b3875f2 to a1eef19 Compare September 25, 2025 13:42
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[Continuous Integration Checks / coverage (pull_request)](https://github.com/lightningdevkit/rust-lightning/actions/runs/18010528633/job/51241717098?pr=3838)Failing after 13m

thread 'tests::test_payment_path_scoring' panicked at lightning-background-processor/src/lib.rs:3497:9:
PaymentPathSuccessful not handled within deadline: Timeout

not related to this PR, will confirm

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I did another pass and I think the changes here look good.

I have yet to take a look at #4109 to fully understand what's the plan there, but IMO this PR should be ready.

Want to note that the generated test changes are very verbose. While looking reasonable, I hope I didn't miss anything there.


// this is ONLY used on LSPS2 so it says it's not used but it is
#[allow(dead_code)]
pub(crate) fn create_service_client_and_payer_nodes<'a, 'b, 'c>(
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Seems we now have a lot of different variants of these create_service_and_client_nodes helpers. I wonder if we could DRY them up eventually, but doesn't need to happen here.

use lightning::get_event_msg;
use lightning::ln::channelmanager::PaymentId;
use lightning::ln::channelmanager::Retry;
use lightning::ln::functional_test_utils::create_funding_transaction;
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nit: All of these imports should be grouped at the module-level.

setup_test_lsps2_nodes_with_kv_stores(nodes, service_kv_store, client_kv_store)
}

fn setup_test_lsps2_nodes_with_payer<'a, 'b, 'c>(
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Same here, would be good to eventually reduce/DRY up the boilerplate a bit at some point.

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@tnull I created an issue to track the latest comments #4128


fn get_funding_tx(&self) -> Option<Transaction> {
match self {
TrustModel::ClientTrustsLsp { funding_tx, .. } => funding_tx.clone(),
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There's no need to clone this now, you can just return a reference to the tx.

@TheBlueMatt TheBlueMatt merged commit aa813a2 into lightningdevkit:main Sep 26, 2025
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