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@tnull tnull commented Dec 12, 2025

Closes #3480.

We 'refactor' (rewrite) the LSPS1ServiceHandler, move state handling to a dedicated PeerState, add an STM pattern, add persistence for the service state, add some more critical API paths, add test coverage, and finally remove the cfg(lsps1_service) flag.

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@tnull tnull marked this pull request as draft December 12, 2025 15:28
@tnull tnull force-pushed the 2025-11-lsps1-refactor branch 4 times, most recently from 773316a to fb519ab Compare December 12, 2025 16:08
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codecov bot commented Dec 12, 2025

Codecov Report

❌ Patch coverage is 71.00000% with 290 lines in your changes missing coverage. Please review.
✅ Project coverage is 86.21%. Comparing base (f43803d) to head (ed6d0c9).
⚠️ Report is 68 commits behind head on main.

Files with missing lines Patch % Lines
lightning-liquidity/src/lsps1/service.rs 58.51% 178 Missing and 17 partials ⚠️
lightning-liquidity/src/lsps1/peer_state.rs 84.05% 34 Missing and 32 partials ⚠️
lightning-liquidity/src/persist.rs 65.51% 6 Missing and 4 partials ⚠️
lightning/src/util/ser.rs 64.28% 4 Missing and 6 partials ⚠️
lightning-liquidity/src/manager.rs 82.05% 2 Missing and 5 partials ⚠️
lightning-background-processor/src/lib.rs 87.50% 1 Missing ⚠️
lightning-liquidity/src/lsps1/msgs.rs 90.90% 0 Missing and 1 partial ⚠️
Additional details and impacted files
@@            Coverage Diff             @@
##             main    #4282      +/-   ##
==========================================
+ Coverage   86.01%   86.21%   +0.19%     
==========================================
  Files         156      158       +2     
  Lines      102857   104430    +1573     
  Branches   102857   104430    +1573     
==========================================
+ Hits        88474    90034    +1560     
+ Misses      11876    11807      -69     
- Partials     2507     2589      +82     
Flag Coverage Δ
tests 86.21% <71.00%> (+0.19%) ⬆️

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@tnull tnull force-pushed the 2025-11-lsps1-refactor branch 2 times, most recently from b96685b to c6eb6b3 Compare December 15, 2025 12:27
@tnull tnull self-assigned this Dec 18, 2025
@tnull tnull moved this to Goal: Merge in Weekly Goals Dec 18, 2025
@tnull tnull added this to the 0.3 milestone Jan 29, 2026
martinsaposnic and others added 17 commits February 4, 2026 15:05
We add the first LSPS1 integration test. This is based on the unfinished
work in lightningdevkit#3864, but
rebased to account for the new ways we now do integration test setup.
.. for which we got warnings
We previously considered tracking payment confirmations as part of the
handler. However, we can considerably simplify our logic if we stick
with the current approach of having the LSPs track the payment status
and update us when prompted through events.
Now that we don't do on-chain tracking in LSPS1, we can drop quite a few
`LiquidityManager` parameters and generics, which were only added in
anticipation of tracking on-chain state.

Signed-off-by: Elias Rohrer <[email protected]>
We move the `PeerState` related types to a new module. In the following
commits we'll bit-by-bit drop the `pub(super)`s introduced here,
asserting better separation of state and logic going forward.
.. we will re-add a proper state machine in a later commit, but for now
we can just drop all of this half-baked logic that doesn't actually do
anything.
.. requiring less access to internals
Previously, we'd directly access the internal `outbound_` map of
`PeerState`. Here we refactor the code to avoid this.

Note this also highlighted a bug in that we currently don't actually
update/persist the order state in `update_order_state`. We don't fix
this here, but just improve isolation for now, as all state update
behavior will be reworked later.
We introduce two new methods on `PeerState` to avoid direct access to
the internal `pending_requests` map.
The `OutboundChannel` construct simply wrapped `ChannelOrder` which we
can now simply use directly.
We here remember and update the order state and channel details in
`ChannelOrder`
Since we by now have the `TimeProvider` trait, we might as well use it
in `LSPS1ServiceHandler` instead of requiring the user to provide a
`created_at` manually.

Signed-off-by: Elias Rohrer <[email protected]>
In the future we might want to inline the fields in `LSPS1ServiceConfig`
(especially once some are added that we'd want to always/never set for
the user), but for now we just make the `supported_options` field in
`LSPS1ServiceConfig` required, avoiding some dangerous `unwrap`s.
Previously, we'd use an event to have the user check the order status
and then call back in. As we already track the order status, we here
change that to a model where we respond immediately based on our state
and have the user/LSP update that state whenever it detects a change
(e.g., a received payment, reorg, etc.). In the next commmit we will
add/modify the corresponding API methods to do so.
We add the serializations for all types that will be persisted as part
of the `PeerState`.
We follow the model already employed in LSPS2/LSPS5 and implement
state pruning and persistence for `LSPS1ServiceHandler` state.

Signed-off-by: Elias Rohrer <[email protected]>
.. we read the persisted state in `LiquidityManager::new`

Signed-off-by: Elias Rohrer <[email protected]>
@tnull tnull marked this pull request as ready for review February 5, 2026 12:58
@tnull tnull requested a review from TheBlueMatt February 5, 2026 12:58
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tnull commented Feb 5, 2026

Should be good for review.

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&& payment_details.onchain.is_some()
{
// bLIP-51: 'LSP MUST disable on-chain payments if the client omits this field.'
let err = "Onchain payments must be disabled if no refund_onchain_address is set.".to_string();
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This requirement doesn't appear to be documented in LSPS1ServiceEvent::RequestForPaymentDetails or LSPS1PaymentInfo, but I'm not sure we should bother erroring here vs just removing the unsupported option before sending the order to the peer?

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Ah, good point. Turns out we didn't expose refund_onchain_address anywhere. I now added a fixup documenting the requirement on both the method and the event, added a refund_onchain_address field to the event and a onchain_payment_required method allowing the LSP to reject a request for this reason.

I think auto-stripping the onchain payment variant isn't great as we might end up without any payment variant, and would need to auto-reject the request then. Might be preferable to leave that up to the LSP in general?

) -> ChannelOrder {
let state = ChannelOrderState::new(payment_details);
let channel_order = ChannelOrder { order_params, state, created_at };
self.outbound_channels_by_order_id.insert(order_id, channel_order.clone());
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might want some kind of size limit here to limit dos, tho we could also just do it at the start of the flow.

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Yeah, I now added a commit following the approach we took for LSPS2, i.e., adding MAX_TOTAL_PEERS, MAX_REQUESTS_PER_PEER and MAX_TOTAL_PENDING_REQUESTS limits.

let msg = LSPS1Message::Response(request_id.clone(), response).into();
message_queue_notifier.enqueue(counterparty_node_id, msg);
let err = format!("Failed to handle request due to: {}", e);
let action = ErrorAction::IgnoreAndLog(Level::Error);
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Here and likely elsewhere, we really can't log at Error just because someone sends us a bogus message.

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Hmm, note that we already silently fail if we can't parse the message at all. This basically follows what we do elsewhere in the codebase. I think we should do #3492 as a follow-up to make sure we follow the same approach everywhere. I'll tag that 0.3

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Hmm, okay. I'm not a fan of making things worse than it is only to fix it later, but...

#[cfg(not(feature = "time"))]
{
// TODO: We need to find a way to check expiry times in no-std builds.
all_payment_details_expired = false;
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Probably can just insta-remove things that are failed, at least.

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I don't think so, as we still want to show the Failed state back to the user querying their order status.

self.state,
ChannelOrderState::ExpectingPayment { .. }
| ChannelOrderState::FailedAndRefunded { .. }
);
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Do we ever want to prune things that were completed? A two year old channel lease that expired 18 months ago probably isn't interesting?

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Yes, probably, and we have the same issue with LSPS2. I think it would be good to add a consistent API that works for both in a follow up. Could be to leave it to the user to manually call a prune method, or possibly set an auto-prune config flag in the respective service configs? Anyway, I'd prefer to leave that as a follow-up.

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@tnull tnull force-pushed the 2025-11-lsps1-refactor branch from 922b0fa to 8a0d33d Compare February 11, 2026 10:33
We add a method that allows the LSP to signal to the client the token
they used was invalid.

We use the `102` error code as proposed in
lightning/blips#68.
We test the just-added API.

Co-authored by Claude AI
This refactors `ChannelOrder` to use an internal state machine enum
`ChannelOrderState` that:
- Encapsulates state-specific data in variants (e.g., `channel_info`
  only available in `CompletedAndChannelOpened`)
- Provides type-safe state transitions
- Replaces the generic `update_order_status` API with specific
  transition methods: `order_payment_received`, `order_channel_opened`,
  and `order_failed_and_refunded`

The state machine has four states:
- `ExpectingPayment`: Initial state, awaiting payment
- `OrderPaid`: Payment received, awaiting channel open
- `CompletedAndChannelOpened`: Terminal state with channel info
- `FailedAndRefunded`: Terminal state for failed/refunded orders

Co-Authored-By: HAL 9000
Signed-off-by: Elias Rohrer <[email protected]>
@tnull tnull force-pushed the 2025-11-lsps1-refactor branch from 8a0d33d to 0b4d9dd Compare February 11, 2026 12:06
Add two new integration tests to cover the new public API methods:

- `lsps1_order_state_transitions`: Tests the full flow of
  `order_payment_received` followed by `order_channel_opened`,
  verifying that payment states are updated correctly and channel
  info is returned after the channel is opened.

- `lsps1_order_failed_and_refunded`: Tests the `order_failed_and_refunded`
  method, verifying that payment states are set to Refunded.

Co-Authored-By: HAL 9000
Add `lsps1_expired_orders_are_pruned_and_not_persisted` test that verifies:

- Orders with expired payment details (expires_at in the past) are
  accessible before persist() is called
- After persist() is called, expired orders in ExpectingPayment state
  are pruned and no longer accessible
- Pruned orders are not recovered after restart, confirming that
  the pruning also removes the persisted state

Co-Authored-By: HAL 9000
The bLIP-51 specification defines a `HOLD` intermediate payment state:
- `EXPECT_PAYMENT` -> `HOLD` -> `PAID` (success path)
- `EXPECT_PAYMENT` -> `REFUNDED` (failure before payment)
- `HOLD` -> `REFUNDED` (failure after payment received)

This commit adds the `Hold` variant to `LSPS1PaymentState` and updates
the state machine transitions:

- `payment_received()` now sets payment state to `Hold` (not `Paid`)
- `channel_opened()` transitions payment state from `Hold` to `Paid`
- Tests updated to verify the correct state at each transition

This allows LSPs to properly communicate when a payment has been
received but the channel has not yet been opened (e.g., Lightning
HTLC held, or on-chain tx detected but channel funding not published).

Co-Authored-By: HAL 9000
Turns out this was another variant we didn't actually use anywhere. So
we're dropping it.
@tnull tnull force-pushed the 2025-11-lsps1-refactor branch from 0b4d9dd to 3ae7578 Compare February 11, 2026 12:12
We previously had no way to reject requests in case the LSP requires
onchain payment while the client not providing
`refund_onchain_address`. Here we add a method allowing to do so.
Add per-peer and global rate limiting to `LSPS1ServiceHandler` to
prevent resource exhaustion, mirroring the existing LSPS2 pattern.

Introduce `MAX_PENDING_REQUESTS_PER_PEER` (10),
`MAX_TOTAL_PENDING_REQUESTS` (1000), and `MAX_TOTAL_PEERS` (100000)
constants and enforce them in `handle_create_order_request`. Rejected
requests receive a `CreateOrderError` with
`LSPS0_CLIENT_REJECTED_ERROR_CODE`. A `total_pending_requests` atomic
counter tracks the global count, and a `verify_pending_request_counter`
debug assertion ensures it stays in sync.

Co-Authored-By: HAL 9000
@tnull tnull force-pushed the 2025-11-lsps1-refactor branch from 3ae7578 to 4489325 Compare February 11, 2026 12:27
@tnull tnull requested a review from TheBlueMatt February 11, 2026 12:50
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LSPS1 integration tracking issue

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