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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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Once they submit their review, I'll check if a second reviewer would be helpful.

@tnull tnull self-requested a review June 9, 2025 19:17
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Codecov Report

❌ Patch coverage is 93.78734% with 52 lines in your changes missing coverage. Please review.
✅ Project coverage is 88.45%. Comparing base (5ae19b4) to head (a091350).

Files with missing lines Patch % Lines
lightning-liquidity/src/lsps2/service.rs 84.75% 39 Missing and 2 partials ⚠️
lightning/src/chain/channelmonitor.rs 97.96% 9 Missing and 2 partials ⚠️
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  Branches   131896   132695     +799     
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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?

@@ -11,6 +11,7 @@

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?

let mut payment_queue = core::mem::take(payment_queue);
payment_queue.add_htlc(htlc);
*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

@@ -1075,7 +1075,7 @@ impl PaymentParameters {
}

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

@@ -35,7 +35,7 @@ lightning = { version = "0.2.0", path = "../lightning", default-features = false
lightning-macros = { version = "0.2", path = "../lightning-macros", default-features = false }
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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just pushed a few fixup commits that address the latest comments, and also introduced the whole logic to "track the manual-broadcast flag and pass it to the ChannelMonitor to not broadcast commitment txs"

let me know what you think, thanks!!

@TheBlueMatt @tnull

martinsaposnic added a commit to martinsaposnic/ldk-node that referenced this pull request Sep 10, 2025
implement changes introduced on lightningdevkit/rust-lightning#3838
as discussed, client_trusts_lsp is a flag set at startup.
a new function receive_via_jit_channel_manual_claim is introduced to bolt11 so we allow the client to
manually claim a payment (used on tests).
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after debugging for a while, I realized I had to rebase this PR to pull latest changes (specifically #4065) so everything works on ldk-node side

sorry for the noise

latest fixups to review are 6d487f9, fe5a955 and dd46295

martinsaposnic added a commit to martinsaposnic/ldk-node that referenced this pull request Sep 10, 2025
implement changes introduced on lightningdevkit/rust-lightning#3838
as discussed, client_trusts_lsp is a flag set at startup.
a new function receive_via_jit_channel_manual_claim is introduced to bolt11 so we allow the client to
manually claim a payment (used on tests).
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also FYI, ldk-node's counterpart of this PR is ready lightningdevkit/ldk-node#572

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I think the ChannelMonitor changes LGTM, mind squashing and pulling that out into a separate commit?

@@ -6511,6 +6555,8 @@ impl<'a, 'b, ES: EntropySource, SP: SignerProvider> ReadableArgs<(&'a ES, &'b SP
prev_holder_commitment_tx,
},
pending_funding: pending_funding.unwrap_or(vec![]),
is_manual_broadcast: is_manual_broadcast.unwrap_or(false),
funding_seen_onchain: funding_seen_onchain.unwrap_or(false),
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Shouldn't we set this to true on upgrade, assuming we saw it?

@@ -2246,6 +2255,12 @@ impl<Signer: EcdsaChannelSigner> ChannelMonitor<Signer> {
/// close channel with their commitment transaction after a substantial amount of time. Best
/// may be to contact the other node operator out-of-band to coordinate other options available
/// to you.
///
/// Note: For channels where the funding transaction is being manually managed (see
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Shouldn't we allow a manual call to override the auto-broadcast logic?

self.pending_funding.iter().any(|f| f.funding_txid() == *txid)
{
log_trace!(logger, "transaction_unconfirmed removed observed funding. resetting funding_seen_onchain");
self.funding_seen_onchain = false;
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This isn't so simple re: splicing, but also I think we shouldn't ever unset this - the important thing is that we know that a funding tx was broadcasted, not that it is currently confirmed.

@@ -5426,10 +5456,14 @@ impl<Signer: EcdsaChannelSigner> ChannelMonitorImpl<Signer> {
let should_broadcast = self.should_broadcast_holder_commitment_txn(logger);
if let Some(payment_hash) = should_broadcast {
let reason = ClosureReason::HTLCsTimedOut { payment_hash: Some(payment_hash) };
let (mut new_outpoints, mut new_outputs) =
if self.is_manual_broadcast && !self.funding_seen_onchain {
let _ = self.generate_claimable_outpoints_and_watch_outputs(Some(reason));
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Not sure why we're making this call? Also, lots of indentation via spaces in this file.

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I need it because of the side effect. generate_claimable_outpoints_and_watch_outputs(Some(reason)) enqueues MonitorEvent::HolderForceClosedWithInfo, which is what actually closes the channel.

If I skip it when is_manual_broadcast == true and the funding_tx has not been seen, the LSP->client channel does not close, even though the client has not claimed the HTLC (this is tested by client_trusts_lsp_partial_fee_does_not_trigger_broadcast and htlc_timeout_before_client_claim_results_in_handling_failed, and they both fail if I skip the call to generate_claimable_outpoints_and_watch_outputs)

@martinsaposnic martinsaposnic force-pushed the client-trusts-lsp branch 2 times, most recently from dbe7434 to 344b859 Compare September 11, 2025 16:24
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@martinsaposnic martinsaposnic force-pushed the client-trusts-lsp branch 2 times, most recently from 8683442 to 5bde2e6 Compare September 12, 2025 01:24
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ok, just squashed all the fixups, pulled the channelmonitor changes into a new commit, and then pushed a new fixup addressing the latest comments. let me know what you think

thanks!

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Thanks, basically LGTM

///
/// Note that `next_channel_id` is required to be provided. Therefore, the corresponding
/// Note that `next_channel_id` and `skimmed_fee_msat` are required to be provided. Therefore, the corresponding
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Here and a few other places, please keep comments/doc strings line-wrapped to 100 chars.

/// [`crate::ln::channelmanager::ChannelManager::funding_transaction_generated_manual_broadcast`]),
/// automatic broadcasts are suppressed until the funding transaction has been observed on-chain.
/// Calling this method overrides that suppression and queues the latest holder commitment
/// transaction for broadcast even if the funding has not yet been seen on-chain. This is unsafe
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I wouldn't say "this is unsafe", its not, it will just result in unconfirmable transactions being broadcast or bump events for commitments we can't confirm. We should clarify that and explicitly reference the event imo.

@@ -5151,6 +5180,14 @@ impl<Signer: EcdsaChannelSigner> ChannelMonitorImpl<Signer> {
F::Target: FeeEstimator,
L::Target: Logger,
{
for &(_, tx) in txdata.iter() {
let txid = tx.compute_txid();
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This is relatively expensive for clients connecting full blocks. Can you move this logic into the existing loop that already computes the txids?

@@ -1131,6 +1131,9 @@ pub(crate) struct ChannelMonitorImpl<Signer: EcdsaChannelSigner> {
funding: FundingScope,
pending_funding: Vec<FundingScope>,

is_manual_broadcast: bool,
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These need doc comments explaining how they're set on upgrade, ie under what conditions we can't rely on them being correct.

@@ -6394,6 +6440,8 @@ impl<'a, 'b, ES: EntropySource, SP: SignerProvider> ReadableArgs<(&'a ES, &'b SP
(31, channel_parameters, (option: ReadableArgs, None)),
(32, pending_funding, optional_vec),
(34, alternative_funding_confirmed, option),
(36, is_manual_broadcast, option),
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I don't think we want these to be even, right? If we downgrade we just end up with the old behavior where we'll broadcast but shouldn't, which seems correct, at least in the sense that its the old behavior.

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keep doc/comments to 100 chars max per line
adjust channel monitor comments
move funding search to filter_block
make is_manual_broadcast and funding_seen_onchain odd. its ok to be odd
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I just pushed a new small fixup commit addressing the latest comments

a single self-hosted CI build is failing for unrelated reasons, I will investigate

thanks!

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self.generate_claimable_outpoints_and_watch_outputs(None);
claimable_outpoints.append(&mut claimables);
watch_outputs.append(&mut outputs);
// Avoid broadcasting in manual-broadcast mode until funding is seen on-chain.
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tabs, not spaces :)

// Avoid broadcasting in manual-broadcast mode until funding is seen on-chain.
if !self.is_manual_broadcast || self.funding_seen_onchain {
let (mut claimables, mut outputs) =
self.generate_claimable_outpoints_and_watch_outputs(None);
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Shouldn't this be called no matter the state of is_manual_broadcast/funding_seen_onchain, just ignoring the results?

if !self.funding_seen_onchain && (txid == self.funding.funding_txid() ||
self.pending_funding.iter().any(|f| f.funding_txid() == txid))
{
self.funding_seen_onchain = true;
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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.

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