@arkade-os/sdk 0.1.3 → 0.2.0

package/dist/esm/wallet/wallet.js

@@ -1,233 +1,216 @@
 import { base64, hex } from "@scure/base";
-import { Address, OutScript, p2tr, tapLeafHash, } from "@scure/btc-signer/payment";
-import { Transaction } from "@scure/btc-signer";
-import { TaprootControlBlock } from "@scure/btc-signer/psbt";
+import * as bip68 from "bip68";
+import { Address, OutScript, tapLeafHash } from "@scure/btc-signer/payment";
+import { SigHash, Transaction } from "@scure/btc-signer";
+import { TaprootControlBlock, } from "@scure/btc-signer/psbt";
 import { vtxosToTxs } from '../utils/transactionHistory.js';
-import { BIP21 } from '../utils/bip21.js';
 import { ArkAddress } from '../script/address.js';
 import { DefaultVtxo } from '../script/default.js';
-import { selectCoins, selectVirtualCoins } from '../utils/coinselect.js';
 import { getNetwork } from '../networks.js';
 import { ESPLORA_URL, EsploraProvider, } from '../providers/onchain.js';
 import { SettlementEventType, RestArkProvider, } from '../providers/ark.js';
 import { buildForfeitTx } from '../forfeit.js';
-import { TxWeightEstimator } from '../utils/txSizeEstimator.js';
-import { validateConnectorsTree, validateVtxoTree } from '../tree/validation.js';
-import { TxType, } from './index.js';
-import { scriptFromTapLeafScript, VtxoScript } from '../script/base.js';
-import { CSVMultisigTapscript, decodeTapscript, } from '../script/tapscript.js';
-import { createVirtualTx } from '../utils/psbt.js';
+import { validateConnectorsTxGraph, validateVtxoTxGraph, } from '../tree/validation.js';
+import { isRecoverable, isSpendable, isSubdust, TxType, } from './index.js';
+import { sha256, sha256x2 } from "@scure/btc-signer/utils";
+import { VtxoScript } from '../script/base.js';
+import { CSVMultisigTapscript } from '../script/tapscript.js';
+import { buildOffchainTx } from '../utils/arkTransaction.js';
 import { ArkNote } from '../arknote/index.js';
-// Wallet does not store any data and rely on the Ark and onchain providers to fetch utxos and vtxos
+import { BIP322 } from '../bip322/index.js';
+import { RestIndexerProvider } from '../providers/indexer.js';
+import { TxTree } from '../tree/txTree.js';
+/**
+ * Main wallet implementation for Bitcoin transactions with Ark protocol support.
+ * The wallet does not store any data locally and relies on Ark and onchain
+ * providers to fetch UTXOs and VTXOs.
+ *
+ * @example
+ * ```typescript
+ * // Create a wallet
+ * const wallet = await Wallet.create({
+ *   identity: SingleKey.fromHex('your_private_key'),
+ *   arkServerUrl: 'https://ark.example.com',
+ *   esploraUrl: 'https://mempool.space/api'
+ * });
+ *
+ * // Get addresses
+ * const arkAddress = await wallet.getAddress();
+ * const boardingAddress = await wallet.getBoardingAddress();
+ *
+ * // Send bitcoin
+ * const txid = await wallet.sendBitcoin({
+ *   address: 'tb1...',
+ *   amount: 50000
+ * });
+ * ```
+ */
 export class Wallet {
-    constructor(identity, network, onchainProvider, onchainP2TR, arkProvider, arkServerPublicKey, offchainTapscript, boardingTapscript) {
+    constructor(identity, network, networkName, onchainProvider, arkProvider, indexerProvider, arkServerPublicKey, offchainTapscript, boardingTapscript, serverUnrollScript, forfeitOutputScript, dustAmount) {
         this.identity = identity;
         this.network = network;
+        this.networkName = networkName;
         this.onchainProvider = onchainProvider;
-        this.onchainP2TR = onchainP2TR;
         this.arkProvider = arkProvider;
+        this.indexerProvider = indexerProvider;
         this.arkServerPublicKey = arkServerPublicKey;
         this.offchainTapscript = offchainTapscript;
         this.boardingTapscript = boardingTapscript;
+        this.serverUnrollScript = serverUnrollScript;
+        this.forfeitOutputScript = forfeitOutputScript;
+        this.dustAmount = dustAmount;
     }
     static async create(config) {
-        const network = getNetwork(config.network);
-        const onchainProvider = new EsploraProvider(config.esploraUrl || ESPLORA_URL[config.network]);
-        // Derive onchain address
         const pubkey = config.identity.xOnlyPublicKey();
         if (!pubkey) {
             throw new Error("Invalid configured public key");
         }
-        let arkProvider;
-        if (config.arkServerUrl) {
-            arkProvider = new RestArkProvider(config.arkServerUrl);
-        }
-        // Save onchain Taproot address key-path only
-        const onchainP2TR = p2tr(pubkey, undefined, network);
-        if (arkProvider) {
-            const info = await arkProvider.getInfo();
-            if (info.network !== config.network) {
-                throw new Error(`The Ark Server URL expects ${info.network} but ${config.network} was configured`);
-            }
-            const exitTimelock = {
-                value: info.unilateralExitDelay,
-                type: info.unilateralExitDelay < 512n ? "blocks" : "seconds",
-            };
-            const boardingTimelock = {
-                value: info.unilateralExitDelay * 2n,
-                type: info.unilateralExitDelay * 2n < 512n ? "blocks" : "seconds",
-            };
-            // Generate tapscripts for offchain and boarding address
-            const serverPubKey = hex.decode(info.pubkey).slice(1);
-            const bareVtxoTapscript = new DefaultVtxo.Script({
-                pubKey: pubkey,
-                serverPubKey,
-                csvTimelock: exitTimelock,
-            });
-            const boardingTapscript = new DefaultVtxo.Script({
-                pubKey: pubkey,
-                serverPubKey,
-                csvTimelock: boardingTimelock,
-            });
-            // Save tapscripts
-            const offchainTapscript = bareVtxoTapscript;
-            return new Wallet(config.identity, network, onchainProvider, onchainP2TR, arkProvider, serverPubKey, offchainTapscript, boardingTapscript);
-        }
-        return new Wallet(config.identity, network, onchainProvider, onchainP2TR);
-    }
-    get onchainAddress() {
-        return this.onchainP2TR.address || "";
-    }
-    get boardingAddress() {
-        if (!this.boardingTapscript || !this.arkServerPublicKey) {
-            throw new Error("Boarding address not configured");
-        }
-        return this.boardingTapscript.address(this.network.hrp, this.arkServerPublicKey);
-    }
-    get boardingOnchainAddress() {
-        if (!this.boardingTapscript) {
-            throw new Error("Boarding address not configured");
-        }
-        return this.boardingTapscript.onchainAddress(this.network);
+        const arkProvider = new RestArkProvider(config.arkServerUrl);
+        const indexerProvider = new RestIndexerProvider(config.arkServerUrl);
+        const info = await arkProvider.getInfo();
+        const network = getNetwork(info.network);
+        const onchainProvider = new EsploraProvider(config.esploraUrl || ESPLORA_URL[info.network]);
+        const exitTimelock = {
+            value: info.unilateralExitDelay,
+            type: info.unilateralExitDelay < 512n ? "blocks" : "seconds",
+        };
+        const boardingTimelock = {
+            value: info.boardingExitDelay,
+            type: info.boardingExitDelay < 512n ? "blocks" : "seconds",
+        };
+        // Generate tapscripts for offchain and boarding address
+        const serverPubKey = hex.decode(info.signerPubkey).slice(1);
+        const bareVtxoTapscript = new DefaultVtxo.Script({
+            pubKey: pubkey,
+            serverPubKey,
+            csvTimelock: exitTimelock,
+        });
+        const boardingTapscript = new DefaultVtxo.Script({
+            pubKey: pubkey,
+            serverPubKey,
+            csvTimelock: boardingTimelock,
+        });
+        // Save tapscripts
+        const offchainTapscript = bareVtxoTapscript;
+        // the serverUnrollScript is the one used to create output scripts of the checkpoint transactions
+        const serverUnrollScript = CSVMultisigTapscript.encode({
+            timelock: exitTimelock,
+            pubkeys: [serverPubKey],
+        });
+        // parse the server forfeit address
+        // server is expecting funds to be sent to this address
+        const forfeitAddress = Address(network).decode(info.forfeitAddress);
+        const forfeitOutputScript = OutScript.encode(forfeitAddress);
+        return new Wallet(config.identity, network, info.network, onchainProvider, arkProvider, indexerProvider, serverPubKey, offchainTapscript, boardingTapscript, serverUnrollScript, forfeitOutputScript, info.dust);
     }
-    get offchainAddress() {
-        if (!this.offchainTapscript || !this.arkServerPublicKey) {
-            throw new Error("Offchain address not configured");
-        }
+    get arkAddress() {
         return this.offchainTapscript.address(this.network.hrp, this.arkServerPublicKey);
     }
-    getAddress() {
-        const addressInfo = {
-            onchain: this.onchainAddress,
-            bip21: BIP21.create({
-                address: this.onchainAddress,
-            }),
-        };
-        // Only include Ark-related fields if Ark provider is configured and address is available
-        if (this.arkProvider &&
-            this.offchainTapscript &&
-            this.boardingTapscript &&
-            this.arkServerPublicKey) {
-            const offchainAddress = this.offchainAddress.encode();
-            addressInfo.offchain = offchainAddress;
-            addressInfo.bip21 = BIP21.create({
-                address: this.onchainP2TR.address,
-                ark: offchainAddress,
-            });
-            addressInfo.boarding = this.boardingOnchainAddress;
-        }
-        return Promise.resolve(addressInfo);
+    async getAddress() {
+        return this.arkAddress.encode();
     }
-    getAddressInfo() {
-        if (!this.arkProvider ||
-            !this.offchainTapscript ||
-            !this.boardingTapscript ||
-            !this.arkServerPublicKey) {
-            throw new Error("Ark provider not configured");
-        }
-        const offchainAddress = this.offchainAddress.encode();
-        const boardingAddress = this.boardingOnchainAddress;
-        return Promise.resolve({
-            offchain: {
-                address: offchainAddress,
-                scripts: {
-                    exit: [this.offchainTapscript.exitScript],
-                    forfeit: [this.offchainTapscript.forfeitScript],
-                },
-            },
-            boarding: {
-                address: boardingAddress,
-                scripts: {
-                    exit: [this.boardingTapscript.exitScript],
-                    forfeit: [this.boardingTapscript.forfeitScript],
-                },
-            },
-        });
+    async getBoardingAddress() {
+        return this.boardingTapscript.onchainAddress(this.network);
     }
     async getBalance() {
-        // Get onchain coins
-        const coins = await this.getCoins();
-        const onchainConfirmed = coins
-            .filter((coin) => coin.status.confirmed)
+        const [boardingUtxos, vtxos] = await Promise.all([
+            this.getBoardingUtxos(),
+            this.getVtxos(),
+        ]);
+        // boarding
+        let confirmed = 0;
+        let unconfirmed = 0;
+        for (const utxo of boardingUtxos) {
+            if (utxo.status.confirmed) {
+                confirmed += utxo.value;
+            }
+            else {
+                unconfirmed += utxo.value;
+            }
+        }
+        // offchain
+        let settled = 0;
+        let preconfirmed = 0;
+        let recoverable = 0;
+        settled = vtxos
+            .filter((coin) => coin.virtualStatus.state === "settled")
             .reduce((sum, coin) => sum + coin.value, 0);
-        const onchainUnconfirmed = coins
-            .filter((coin) => !coin.status.confirmed)
+        preconfirmed = vtxos
+            .filter((coin) => coin.virtualStatus.state === "preconfirmed")
             .reduce((sum, coin) => sum + coin.value, 0);
-        const onchainTotal = onchainConfirmed + onchainUnconfirmed;
-        // Get offchain coins if Ark provider is configured
-        let offchainSettled = 0;
-        let offchainPending = 0;
-        let offchainSwept = 0;
-        if (this.arkProvider) {
-            const vtxos = await this.getVirtualCoins();
-            offchainSettled = vtxos
-                .filter((coin) => coin.virtualStatus.state === "settled")
-                .reduce((sum, coin) => sum + coin.value, 0);
-            offchainPending = vtxos
-                .filter((coin) => coin.virtualStatus.state === "pending")
-                .reduce((sum, coin) => sum + coin.value, 0);
-            offchainSwept = vtxos
-                .filter((coin) => coin.virtualStatus.state === "swept")
-                .reduce((sum, coin) => sum + coin.value, 0);
-        }
-        const offchainTotal = offchainSettled + offchainPending;
+        recoverable = vtxos
+            .filter((coin) => isSpendable(coin) && coin.virtualStatus.state === "swept")
+            .reduce((sum, coin) => sum + coin.value, 0);
+        const totalBoarding = confirmed + unconfirmed;
+        const totalOffchain = settled + preconfirmed + recoverable;
         return {
-            onchain: {
-                confirmed: onchainConfirmed,
-                unconfirmed: onchainUnconfirmed,
-                total: onchainTotal,
-            },
-            offchain: {
-                swept: offchainSwept,
-                settled: offchainSettled,
-                pending: offchainPending,
-                total: offchainTotal,
+            boarding: {
+                confirmed,
+                unconfirmed,
+                total: totalBoarding,
             },
-            total: onchainTotal + offchainTotal,
+            settled,
+            preconfirmed,
+            available: settled + preconfirmed,
+            recoverable,
+            total: totalBoarding + totalOffchain,
         };
     }
-    async getCoins() {
-        // TODO: add caching logic to lower the number of requests to provider
-        const address = await this.getAddress();
-        return this.onchainProvider.getCoins(address.onchain);
-    }
-    async getVtxos() {
-        if (!this.arkProvider || !this.offchainTapscript) {
-            return [];
-        }
-        const address = await this.getAddress();
-        if (!address.offchain) {
-            return [];
-        }
-        const { spendableVtxos } = await this.arkProvider.getVirtualCoins(address.offchain);
+    async getVtxos(filter) {
+        const spendableVtxos = await this.getVirtualCoins(filter);
         const encodedOffchainTapscript = this.offchainTapscript.encode();
         const forfeit = this.offchainTapscript.forfeit();
+        const exit = this.offchainTapscript.exit();
         return spendableVtxos.map((vtxo) => ({
             ...vtxo,
-            tapLeafScript: forfeit,
-            scripts: encodedOffchainTapscript,
+            forfeitTapLeafScript: forfeit,
+            intentTapLeafScript: exit,
+            tapTree: encodedOffchainTapscript,
         }));
     }
-    async getVirtualCoins() {
-        if (!this.arkProvider) {
-            return [];
+    async getVirtualCoins(filter = { withRecoverable: true, withUnrolled: false }) {
+        const scripts = [hex.encode(this.offchainTapscript.pkScript)];
+        const response = await this.indexerProvider.getVtxos({
+            scripts,
+            spendableOnly: true,
+        });
+        const vtxos = response.vtxos;
+        if (filter.withRecoverable) {
+            const response = await this.indexerProvider.getVtxos({
+                scripts,
+                recoverableOnly: true,
+            });
+            vtxos.push(...response.vtxos);
         }
-        const address = await this.getAddress();
-        if (!address.offchain) {
-            return [];
+        if (filter.withUnrolled) {
+            const response = await this.indexerProvider.getVtxos({
+                scripts,
+                spentOnly: true,
+            });
+            vtxos.push(...response.vtxos.filter((vtxo) => vtxo.isUnrolled));
         }
-        return this.arkProvider
-            .getVirtualCoins(address.offchain)
-            .then(({ spendableVtxos }) => spendableVtxos);
+        return vtxos;
     }
     async getTransactionHistory() {
-        if (!this.arkProvider) {
+        if (!this.indexerProvider) {
             return [];
         }
-        const { spendableVtxos, spentVtxos } = await this.arkProvider.getVirtualCoins(this.offchainAddress.encode());
-        const { boardingTxs, roundsToIgnore } = await this.getBoardingTxs();
+        const response = await this.indexerProvider.getVtxos({
+            scripts: [hex.encode(this.offchainTapscript.pkScript)],
+        });
+        const { boardingTxs, commitmentsToIgnore } = await this.getBoardingTxs();
+        const spendableVtxos = [];
+        const spentVtxos = [];
+        for (const vtxo of response.vtxos) {
+            if (isSpendable(vtxo)) {
+                spendableVtxos.push(vtxo);
+            }
+            else {
+                spentVtxos.push(vtxo);
+            }
+        }
         // convert VTXOs to offchain transactions
-        const offchainTxs = vtxosToTxs(spendableVtxos, spentVtxos, roundsToIgnore);
+        const offchainTxs = vtxosToTxs(spendableVtxos, spentVtxos, commitmentsToIgnore);
         const txs = [...boardingTxs, ...offchainTxs];
         // sort transactions by creation time in descending order (newest first)
         txs.sort(
@@ -242,13 +225,10 @@ export class Wallet {
         return txs;
     }
     async getBoardingTxs() {
-        if (!this.boardingAddress) {
-            return { boardingTxs: [], roundsToIgnore: new Set() };
-        }
-        const boardingAddress = this.boardingOnchainAddress;
+        const boardingAddress = await this.getBoardingAddress();
         const txs = await this.onchainProvider.getTransactions(boardingAddress);
         const utxos = [];
-        const roundsToIgnore = new Set();
+        const commitmentsToIgnore = new Set();
         for (const tx of txs) {
             for (let i = 0; i < tx.vout.length; i++) {
                 const vout = tx.vout[i];
@@ -256,7 +236,7 @@ export class Wallet {
                     const spentStatuses = await this.onchainProvider.getTxOutspends(tx.txid);
                     const spentStatus = spentStatuses[i];
                     if (spentStatus?.spent) {
-                        roundsToIgnore.add(spentStatus.txid);
+                        commitmentsToIgnore.add(spentStatus.txid);
                     }
                     utxos.push({
                         txid: tx.txid,
@@ -266,10 +246,11 @@ export class Wallet {
                             confirmed: tx.status.confirmed,
                             block_time: tx.status.block_time,
                         },
+                        isUnrolled: true,
                         virtualStatus: {
-                            state: spentStatus?.spent ? "swept" : "pending",
-                            batchTxID: spentStatus?.spent
-                                ? spentStatus.txid
+                            state: spentStatus?.spent ? "spent" : "settled",
+                            commitmentTxIds: spentStatus?.spent
+                                ? [spentStatus.txid]
                                 : undefined,
                         },
                         createdAt: tx.status.confirmed
@@ -285,12 +266,12 @@ export class Wallet {
             const tx = {
                 key: {
                     boardingTxid: utxo.txid,
-                    roundTxid: "",
-                    redeemTxid: "",
+                    commitmentTxid: "",
+                    arkTxid: "",
                 },
                 amount: utxo.value,
                 type: TxType.TxReceived,
-                settled: utxo.virtualStatus.state === "swept",
+                settled: utxo.virtualStatus.state === "spent",
                 createdAt: utxo.status.block_time
                     ? new Date(utxo.status.block_time * 1000).getTime()
                     : 0,
@@ -304,132 +285,80 @@ export class Wallet {
         }
         return {
             boardingTxs: [...unconfirmedTxs, ...confirmedTxs],
-            roundsToIgnore,
+            commitmentsToIgnore,
         };
     }
     async getBoardingUtxos() {
-        if (!this.boardingAddress || !this.boardingTapscript) {
-            throw new Error("Boarding address not configured");
-        }
-        const boardingUtxos = await this.onchainProvider.getCoins(this.boardingOnchainAddress);
+        const boardingAddress = await this.getBoardingAddress();
+        const boardingUtxos = await this.onchainProvider.getCoins(boardingAddress);
         const encodedBoardingTapscript = this.boardingTapscript.encode();
         const forfeit = this.boardingTapscript.forfeit();
+        const exit = this.boardingTapscript.exit();
         return boardingUtxos.map((utxo) => ({
             ...utxo,
-            tapLeafScript: forfeit,
-            scripts: encodedBoardingTapscript,
+            forfeitTapLeafScript: forfeit,
+            intentTapLeafScript: exit,
+            tapTree: encodedBoardingTapscript,
         }));
     }
-    async sendBitcoin(params, zeroFee = true) {
+    async sendBitcoin(params) {
         if (params.amount <= 0) {
             throw new Error("Amount must be positive");
         }
-        if (params.amount < Wallet.DUST_AMOUNT) {
-            throw new Error("Amount is below dust limit");
-        }
-        // If Ark is configured and amount is suitable, send via offchain
-        if (this.arkProvider && this.isOffchainSuitable(params.address)) {
-            return this.sendOffchain(params, zeroFee);
-        }
-        // Otherwise, send via onchain
-        return this.sendOnchain(params);
-    }
-    isOffchainSuitable(address) {
-        try {
-            ArkAddress.decode(address);
-            return true;
-        }
-        catch (e) {
-            return false;
-        }
-    }
-    async sendOnchain(params) {
-        const coins = await this.getCoins();
-        const feeRate = params.feeRate || Wallet.FEE_RATE;
-        // Ensure fee is an integer by rounding up
-        const estimatedFee = Math.ceil(174 * feeRate);
-        const totalNeeded = params.amount + estimatedFee;
-        // Select coins
-        const selected = selectCoins(coins, totalNeeded);
-        if (!selected.inputs) {
-            throw new Error("Insufficient funds");
-        }
-        // Create transaction
-        let tx = new Transaction();
-        // Add inputs
-        for (const input of selected.inputs) {
-            tx.addInput({
-                txid: input.txid,
-                index: input.vout,
-                witnessUtxo: {
-                    script: this.onchainP2TR.script,
-                    amount: BigInt(input.value),
-                },
-                tapInternalKey: this.onchainP2TR.tapInternalKey,
-            });
-        }
-        // Add payment output
-        tx.addOutputAddress(params.address, BigInt(params.amount), this.network);
-        // Add change output if needed
-        if (selected.changeAmount > 0) {
-            tx.addOutputAddress(this.onchainAddress, BigInt(selected.changeAmount), this.network);
-        }
-        // Sign inputs and Finalize
-        tx = await this.identity.sign(tx);
-        tx.finalize();
-        // Broadcast
-        const txid = await this.onchainProvider.broadcastTransaction(tx.hex);
-        return txid;
-    }
-    async sendOffchain(params, zeroFee = true) {
-        if (!this.arkProvider ||
-            !this.offchainAddress ||
-            !this.offchainTapscript) {
-            throw new Error("wallet not initialized");
-        }
-        const virtualCoins = await this.getVirtualCoins();
-        const estimatedFee = zeroFee
-            ? 0
-            : Math.ceil(174 * (params.feeRate || Wallet.FEE_RATE));
-        const totalNeeded = params.amount + estimatedFee;
-        const selected = selectVirtualCoins(virtualCoins, totalNeeded);
-        if (!selected || !selected.inputs) {
-            throw new Error("Insufficient funds");
+        if (!isValidArkAddress(params.address)) {
+            throw new Error("Invalid Ark address " + params.address);
         }
+        // recoverable and subdust coins can't be spent in offchain tx
+        const virtualCoins = await this.getVirtualCoins({
+            withRecoverable: false,
+        });
+        const selected = selectVirtualCoins(virtualCoins, params.amount);
         const selectedLeaf = this.offchainTapscript.forfeit();
         if (!selectedLeaf) {
             throw new Error("Selected leaf not found");
         }
+        const outputAddress = ArkAddress.decode(params.address);
+        const outputScript = BigInt(params.amount) < this.dustAmount
+            ? outputAddress.subdustPkScript
+            : outputAddress.pkScript;
         const outputs = [
             {
-                address: params.address,
+                script: outputScript,
                 amount: BigInt(params.amount),
             },
         ];
         // add change output if needed
-        if (selected.changeAmount > 0) {
+        if (selected.changeAmount > 0n) {
+            const changeOutputScript = selected.changeAmount < this.dustAmount
+                ? this.arkAddress.subdustPkScript
+                : this.arkAddress.pkScript;
             outputs.push({
-                address: this.offchainAddress.encode(),
+                script: changeOutputScript,
                 amount: BigInt(selected.changeAmount),
             });
         }
-        const scripts = this.offchainTapscript.encode();
-        let tx = createVirtualTx(selected.inputs.map((input) => ({
+        const tapTree = this.offchainTapscript.encode();
+        let offchainTx = buildOffchainTx(selected.inputs.map((input) => ({
             ...input,
             tapLeafScript: selectedLeaf,
-            scripts,
-        })), outputs);
-        tx = await this.identity.sign(tx);
-        const psbt = base64.encode(tx.toPSBT());
-        return this.arkProvider.submitVirtualTx(psbt);
+            tapTree,
+        })), outputs, this.serverUnrollScript);
+        const signedVirtualTx = await this.identity.sign(offchainTx.arkTx);
+        const { arkTxid, signedCheckpointTxs } = await this.arkProvider.submitTx(base64.encode(signedVirtualTx.toPSBT()), offchainTx.checkpoints.map((c) => base64.encode(c.toPSBT())));
+        // TODO persist final virtual tx and checkpoints to repository
+        // sign the checkpoints
+        const finalCheckpoints = await Promise.all(signedCheckpointTxs.map(async (c) => {
+            const tx = Transaction.fromPSBT(base64.decode(c));
+            const signedCheckpoint = await this.identity.sign(tx);
+            return base64.encode(signedCheckpoint.toPSBT());
+        }));
+        await this.arkProvider.finalizeTx(arkTxid, finalCheckpoints);
+        return arkTxid;
     }
     async settle(params, eventCallback) {
-        if (!this.arkProvider) {
-            throw new Error("Ark provider not configured");
-        }
-        // validate arknotes inputs
         if (params?.inputs) {
             for (const input of params.inputs) {
+                // validate arknotes inputs
                 if (typeof input === "string") {
                     try {
                         ArkNote.fromString(input);
@@ -443,9 +372,6 @@ export class Wallet {
         // if no params are provided, use all boarding and offchain utxos as inputs
         // and send all to the offchain address
         if (!params) {
-            if (!this.offchainAddress) {
-                throw new Error("Offchain address not configured");
-            }
             let amount = 0;
             const boardingUtxos = await this.getBoardingUtxos();
             amount += boardingUtxos.reduce((sum, input) => sum + input.value, 0);
@@ -459,23 +385,34 @@ export class Wallet {
                 inputs,
                 outputs: [
                     {
-                        address: this.offchainAddress.encode(),
+                        address: await this.getAddress(),
                         amount: BigInt(amount),
                     },
                 ],
             };
         }
-        // register inputs
-        const { requestId } = await this.arkProvider.registerInputsForNextRound(params.inputs.map((input) => {
-            if (typeof input === "string") {
-                return input;
+        const onchainOutputIndexes = [];
+        const outputs = [];
+        let hasOffchainOutputs = false;
+        for (const [index, output] of params.outputs.entries()) {
+            let script;
+            try {
+                // offchain
+                const addr = ArkAddress.decode(output.address);
+                script = addr.pkScript;
+                hasOffchainOutputs = true;
             }
-            return {
-                outpoint: input,
-                tapscripts: input.scripts,
-            };
-        }));
-        const hasOffchainOutputs = params.outputs.some((output) => this.isOffchainSuitable(output.address));
+            catch {
+                // onchain
+                const addr = Address(this.network).decode(output.address);
+                script = OutScript.encode(addr);
+                onchainOutputIndexes.push(index);
+            }
+            outputs.push({
+                amount: output.amount,
+                script,
+            });
+        }
         // session holds the state of the musig2 signing process of the vtxo tree
         let session;
         const signingPublicKeys = [];
@@ -483,189 +420,287 @@ export class Wallet {
             session = this.identity.signerSession();
             signingPublicKeys.push(hex.encode(session.getPublicKey()));
         }
-        // register outputs
-        await this.arkProvider.registerOutputsForNextRound(requestId, params.outputs, signingPublicKeys);
-        // start pinging every seconds
-        const interval = setInterval(() => {
-            this.arkProvider?.ping(requestId).catch(stopPing);
-        }, 1000);
-        let pingRunning = true;
-        const stopPing = () => {
-            if (pingRunning) {
-                pingRunning = false;
-                clearInterval(interval);
-            }
-        };
+        const [intent, deleteIntent] = await Promise.all([
+            this.makeRegisterIntentSignature(params.inputs, outputs, onchainOutputIndexes, signingPublicKeys),
+            this.makeDeleteIntentSignature(params.inputs),
+        ]);
+        const intentId = await this.arkProvider.registerIntent(intent);
         const abortController = new AbortController();
         // listen to settlement events
         try {
-            const settlementStream = this.arkProvider.getEventStream(abortController.signal);
             let step;
-            if (!hasOffchainOutputs) {
-                // if there are no offchain outputs, we don't have to handle musig2 tree signatures
-                // we can directly advance to the finalization step
-                step = SettlementEventType.SigningNoncesGenerated;
-            }
-            const info = await this.arkProvider.getInfo();
-            const sweepTapscript = CSVMultisigTapscript.encode({
-                timelock: {
-                    value: info.batchExpiry,
-                    type: info.batchExpiry >= 512n ? "seconds" : "blocks",
-                },
-                pubkeys: [hex.decode(info.pubkey).slice(1)],
-            }).script;
-            const sweepTapTreeRoot = tapLeafHash(sweepTapscript);
+            const topics = [
+                ...signingPublicKeys,
+                ...params.inputs.map((input) => `${input.txid}:${input.vout}`),
+            ];
+            const settlementStream = this.arkProvider.getEventStream(abortController.signal, topics);
+            // roundId, sweepTapTreeRoot and forfeitOutputScript are set once the BatchStarted event is received
+            let roundId;
+            let sweepTapTreeRoot;
+            const vtxoChunks = [];
+            const connectorsChunks = [];
+            let vtxoGraph;
+            let connectorsGraph;
             for await (const event of settlementStream) {
                 if (eventCallback) {
                     eventCallback(event);
                 }
                 switch (event.type) {
                     // the settlement failed
-                    case SettlementEventType.Failed:
-                        if (step === undefined) {
+                    case SettlementEventType.BatchFailed:
+                        // fail if the roundId is the one joined
+                        if (event.id === roundId) {
+                            throw new Error(event.reason);
+                        }
+                        break;
+                    case SettlementEventType.BatchStarted:
+                        if (step !== undefined) {
+                            continue;
+                        }
+                        const res = await this.handleBatchStartedEvent(event, intentId, this.arkServerPublicKey, this.forfeitOutputScript);
+                        if (!res.skip) {
+                            step = event.type;
+                            sweepTapTreeRoot = res.sweepTapTreeRoot;
+                            roundId = res.roundId;
+                            if (!hasOffchainOutputs) {
+                                // if there are no offchain outputs, we don't have to handle musig2 tree signatures
+                                // we can directly advance to the finalization step
+                                step = SettlementEventType.TreeNoncesAggregated;
+                            }
+                        }
+                        break;
+                    case SettlementEventType.TreeTx:
+                        if (step !== SettlementEventType.BatchStarted &&
+                            step !== SettlementEventType.TreeNoncesAggregated) {
+                            continue;
+                        }
+                        // index 0 = vtxo tree
+                        if (event.batchIndex === 0) {
+                            vtxoChunks.push(event.chunk);
+                            // index 1 = connectors tree
+                        }
+                        else if (event.batchIndex === 1) {
+                            connectorsChunks.push(event.chunk);
+                        }
+                        else {
+                            throw new Error(`Invalid batch index: ${event.batchIndex}`);
+                        }
+                        break;
+                    case SettlementEventType.TreeSignature:
+                        if (step !== SettlementEventType.TreeNoncesAggregated) {
                             continue;
                         }
-                        stopPing();
-                        throw new Error(event.reason);
+                        if (!hasOffchainOutputs) {
+                            continue;
+                        }
+                        if (!vtxoGraph) {
+                            throw new Error("Vtxo graph not set, something went wrong");
+                        }
+                        // index 0 = vtxo graph
+                        if (event.batchIndex === 0) {
+                            const tapKeySig = hex.decode(event.signature);
+                            vtxoGraph.update(event.txid, (tx) => {
+                                tx.updateInput(0, {
+                                    tapKeySig,
+                                });
+                            });
+                        }
+                        break;
                     // the server has started the signing process of the vtxo tree transactions
                     // the server expects the partial musig2 nonces for each tx
-                    case SettlementEventType.SigningStart:
-                        if (step !== undefined) {
+                    case SettlementEventType.TreeSigningStarted:
+                        if (step !== SettlementEventType.BatchStarted) {
                             continue;
                         }
-                        stopPing();
                         if (hasOffchainOutputs) {
                             if (!session) {
-                                throw new Error("Signing session not found");
+                                throw new Error("Signing session not set");
                             }
-                            await this.handleSettlementSigningEvent(event, sweepTapTreeRoot, session);
+                            if (!sweepTapTreeRoot) {
+                                throw new Error("Sweep tap tree root not set");
+                            }
+                            if (vtxoChunks.length === 0) {
+                                throw new Error("unsigned vtxo graph not received");
+                            }
+                            vtxoGraph = TxTree.create(vtxoChunks);
+                            await this.handleSettlementSigningEvent(event, sweepTapTreeRoot, session, vtxoGraph);
                         }
+                        step = event.type;
                         break;
                     // the musig2 nonces of the vtxo tree transactions are generated
                     // the server expects now the partial musig2 signatures
-                    case SettlementEventType.SigningNoncesGenerated:
-                        if (step !== SettlementEventType.SigningStart) {
+                    case SettlementEventType.TreeNoncesAggregated:
+                        if (step !== SettlementEventType.TreeSigningStarted) {
                             continue;
                         }
-                        stopPing();
                         if (hasOffchainOutputs) {
                             if (!session) {
-                                throw new Error("Signing session not found");
+                                throw new Error("Signing session not set");
                             }
                             await this.handleSettlementSigningNoncesGeneratedEvent(event, session);
                         }
+                        step = event.type;
                         break;
                     // the vtxo tree is signed, craft, sign and submit forfeit transactions
                     // if any boarding utxos are involved, the settlement tx is also signed
-                    case SettlementEventType.Finalization:
-                        if (step !== SettlementEventType.SigningNoncesGenerated) {
+                    case SettlementEventType.BatchFinalization:
+                        if (step !== SettlementEventType.TreeNoncesAggregated) {
                             continue;
                         }
-                        stopPing();
-                        await this.handleSettlementFinalizationEvent(event, params.inputs, info);
+                        if (!this.forfeitOutputScript) {
+                            throw new Error("Forfeit output script not set");
+                        }
+                        if (connectorsChunks.length > 0) {
+                            connectorsGraph = TxTree.create(connectorsChunks);
+                            validateConnectorsTxGraph(event.commitmentTx, connectorsGraph);
+                        }
+                        await this.handleSettlementFinalizationEvent(event, params.inputs, this.forfeitOutputScript, connectorsGraph);
+                        step = event.type;
                         break;
                     // the settlement is done, last event to be received
-                    case SettlementEventType.Finalized:
-                        if (step !== SettlementEventType.Finalization) {
+                    case SettlementEventType.BatchFinalized:
+                        if (step !== SettlementEventType.BatchFinalization) {
                             continue;
                         }
                         abortController.abort();
-                        return event.roundTxid;
+                        return event.commitmentTxid;
                 }
-                step = event.type;
             }
         }
         catch (error) {
+            // close the stream
             abortController.abort();
+            try {
+                // delete the intent to not be stuck in the queue
+                await this.arkProvider.deleteIntent(deleteIntent);
+            }
+            catch { }
             throw error;
         }
         throw new Error("Settlement failed");
     }
-    async exit(outpoints) {
-        // TODO store the exit branches in repository
-        // exit should not depend on the ark provider
-        if (!this.arkProvider) {
-            throw new Error("Ark provider not configured");
-        }
-        let vtxos = await this.getVtxos();
-        if (outpoints && outpoints.length > 0) {
-            vtxos = vtxos.filter((vtxo) => outpoints.some((outpoint) => vtxo.txid === outpoint.txid &&
-                vtxo.vout === outpoint.vout));
+    async notifyIncomingFunds(eventCallback) {
+        const arkAddress = await this.getAddress();
+        const boardingAddress = await this.getBoardingAddress();
+        let onchainStopFunc;
+        let indexerStopFunc;
+        if (this.onchainProvider && boardingAddress) {
+            onchainStopFunc = await this.onchainProvider.watchAddresses([boardingAddress], (txs) => {
+                const coins = txs
+                    .map((tx) => {
+                    const vout = tx.vout.findIndex((v) => v.scriptpubkey_address === boardingAddress);
+                    if (vout === -1) {
+                        console.warn(`No vout found for address ${boardingAddress} in transaction ${tx.txid}`);
+                        return null;
+                    }
+                    return {
+                        txid: tx.txid,
+                        vout,
+                        value: Number(tx.vout[vout].value),
+                        status: tx.status,
+                    };
+                })
+                    .filter((coin) => coin !== null);
+                eventCallback({
+                    type: "utxo",
+                    coins,
+                });
+            });
         }
-        if (vtxos.length === 0) {
-            throw new Error("No vtxos to exit");
+        if (this.indexerProvider && arkAddress) {
+            const offchainScript = this.offchainTapscript;
+            const subscriptionId = await this.indexerProvider.subscribeForScripts([
+                hex.encode(offchainScript.pkScript),
+            ]);
+            const abortController = new AbortController();
+            const subscription = this.indexerProvider.getSubscription(subscriptionId, abortController.signal);
+            indexerStopFunc = async () => {
+                abortController.abort();
+                await this.indexerProvider?.unsubscribeForScripts(subscriptionId);
+            };
+            // Handle subscription updates asynchronously without blocking
+            (async () => {
+                try {
+                    for await (const update of subscription) {
+                        if (update.newVtxos?.length > 0) {
+                            eventCallback({
+                                type: "vtxo",
+                                vtxos: update.newVtxos,
+                            });
+                        }
+                    }
+                }
+                catch (error) {
+                    console.error("Subscription error:", error);
+                }
+            })();
         }
-        const trees = new Map();
-        const transactions = [];
-        for (const vtxo of vtxos) {
-            const batchTxid = vtxo.virtualStatus.batchTxID;
-            if (!batchTxid)
-                continue;
-            if (!trees.has(batchTxid)) {
-                const round = await this.arkProvider.getRound(batchTxid);
-                trees.set(batchTxid, round.vtxoTree);
-            }
-            const tree = trees.get(batchTxid);
-            if (!tree) {
-                throw new Error("Tree not found");
+        const stopFunc = () => {
+            onchainStopFunc?.();
+            indexerStopFunc?.();
+        };
+        return stopFunc;
+    }
+    async handleBatchStartedEvent(event, intentId, serverPubKey, forfeitOutputScript) {
+        const utf8IntentId = new TextEncoder().encode(intentId);
+        const intentIdHash = sha256(utf8IntentId);
+        const intentIdHashStr = hex.encode(new Uint8Array(intentIdHash));
+        let skip = true;
+        // check if our intent ID hash matches any in the event
+        for (const idHash of event.intentIdHashes) {
+            if (idHash === intentIdHashStr) {
+                if (!this.arkProvider) {
+                    throw new Error("Ark provider not configured");
+                }
+                await this.arkProvider.confirmRegistration(intentId);
+                skip = false;
             }
-            const exitBranch = await tree.exitBranch(vtxo.txid, async (txid) => {
-                const status = await this.onchainProvider.getTxStatus(txid);
-                return status.confirmed;
-            });
-            transactions.push(...exitBranch);
         }
-        const broadcastedTxs = new Map();
-        for (const tx of transactions) {
-            if (broadcastedTxs.has(tx))
-                continue;
-            const txid = await this.onchainProvider.broadcastTransaction(tx);
-            broadcastedTxs.set(txid, true);
+        if (skip) {
+            return { skip };
         }
+        const sweepTapscript = CSVMultisigTapscript.encode({
+            timelock: {
+                value: event.batchExpiry,
+                type: event.batchExpiry >= 512n ? "seconds" : "blocks",
+            },
+            pubkeys: [serverPubKey],
+        }).script;
+        const sweepTapTreeRoot = tapLeafHash(sweepTapscript);
+        return {
+            roundId: event.id,
+            sweepTapTreeRoot,
+            forfeitOutputScript,
+            skip: false,
+        };
     }
     // validates the vtxo tree, creates a signing session and generates the musig2 nonces
-    async handleSettlementSigningEvent(event, sweepTapTreeRoot, session) {
-        const vtxoTree = event.unsignedVtxoTree;
-        if (!this.arkProvider) {
-            throw new Error("Ark provider not configured");
-        }
+    async handleSettlementSigningEvent(event, sweepTapTreeRoot, session, vtxoGraph) {
         // validate the unsigned vtxo tree
-        validateVtxoTree(event.unsignedSettlementTx, vtxoTree, sweepTapTreeRoot);
+        const commitmentTx = Transaction.fromPSBT(base64.decode(event.unsignedCommitmentTx));
+        validateVtxoTxGraph(vtxoGraph, commitmentTx, sweepTapTreeRoot);
         // TODO check if our registered outputs are in the vtxo tree
-        const settlementPsbt = base64.decode(event.unsignedSettlementTx);
-        const settlementTx = Transaction.fromPSBT(settlementPsbt);
-        const sharedOutput = settlementTx.getOutput(0);
+        const sharedOutput = commitmentTx.getOutput(0);
         if (!sharedOutput?.amount) {
             throw new Error("Shared output not found");
         }
-        session.init(vtxoTree, sweepTapTreeRoot, sharedOutput.amount);
+        session.init(vtxoGraph, sweepTapTreeRoot, sharedOutput.amount);
         await this.arkProvider.submitTreeNonces(event.id, hex.encode(session.getPublicKey()), session.getNonces());
     }
     async handleSettlementSigningNoncesGeneratedEvent(event, session) {
-        if (!this.arkProvider) {
-            throw new Error("Ark provider not configured");
-        }
         session.setAggregatedNonces(event.treeNonces);
         const signatures = session.sign();
         await this.arkProvider.submitTreeSignatures(event.id, hex.encode(session.getPublicKey()), signatures);
     }
-    async handleSettlementFinalizationEvent(event, inputs, infos) {
-        if (!this.arkProvider) {
-            throw new Error("Ark provider not configured");
-        }
-        // parse the server forfeit address
-        // server is expecting funds to be sent to this address
-        const forfeitAddress = Address(this.network).decode(infos.forfeitAddress);
-        const serverPkScript = OutScript.encode(forfeitAddress);
+    async handleSettlementFinalizationEvent(event, inputs, forfeitOutputScript, connectorsGraph) {
         // the signed forfeits transactions to submit
         const signedForfeits = [];
         const vtxos = await this.getVirtualCoins();
-        let settlementPsbt = Transaction.fromPSBT(base64.decode(event.roundTx));
+        let settlementPsbt = Transaction.fromPSBT(base64.decode(event.commitmentTx));
         let hasBoardingUtxos = false;
-        let connectorsTreeValid = false;
+        let connectorIndex = 0;
+        const connectorsLeaves = connectorsGraph?.leaves() || [];
         for (const input of inputs) {
-            if (typeof input === "string")
-                continue; // skip notes
             // check if the input is an offchain "virtual" coin
             const vtxo = vtxos.find((vtxo) => vtxo.txid === input.txid && vtxo.vout === input.vout);
             // boarding utxo, we need to sign the settlement tx
@@ -685,73 +720,246 @@ export class Wallet {
                         continue;
                     // input found in the settlement tx, sign it
                     settlementPsbt.updateInput(i, {
-                        tapLeafScript: [input.tapLeafScript],
+                        tapLeafScript: [input.forfeitTapLeafScript],
                     });
                     inputIndexes.push(i);
                 }
                 settlementPsbt = await this.identity.sign(settlementPsbt, inputIndexes);
                 continue;
             }
-            if (!connectorsTreeValid) {
-                // validate that the connectors tree is valid and contains our expected connectors
-                validateConnectorsTree(event.roundTx, event.connectors);
-                connectorsTreeValid = true;
+            if (isRecoverable(vtxo) || isSubdust(vtxo, this.dustAmount)) {
+                // recoverable or subdust coin, we don't need to create a forfeit tx
+                continue;
             }
-            const forfeitControlBlock = TaprootControlBlock.encode(input.tapLeafScript[0]);
-            const tapscript = decodeTapscript(scriptFromTapLeafScript(input.tapLeafScript));
-            const fees = TxWeightEstimator.create()
-                .addKeySpendInput() // connector
-                .addTapscriptInput(tapscript.witnessSize(100), // TODO: handle conditional script
-            input.tapLeafScript[1].length - 1, forfeitControlBlock.length)
-                .addP2WKHOutput()
-                .vsize()
-                .fee(event.minRelayFeeRate);
-            const connectorsLeaves = event.connectors.leaves();
-            const connectorOutpoint = event.connectorsIndex.get(`${vtxo.txid}:${vtxo.vout}`);
-            if (!connectorOutpoint) {
-                throw new Error("Connector outpoint not found");
+            if (connectorsLeaves.length === 0) {
+                throw new Error("connectors not received");
             }
-            let connectorOutput;
-            for (const leaf of connectorsLeaves) {
-                if (leaf.txid === connectorOutpoint.txid) {
-                    try {
-                        const connectorTx = Transaction.fromPSBT(base64.decode(leaf.tx));
-                        connectorOutput = connectorTx.getOutput(connectorOutpoint.vout);
-                        break;
-                    }
-                    catch {
-                        throw new Error("Invalid connector tx");
-                    }
-                }
+            if (connectorIndex >= connectorsLeaves.length) {
+                throw new Error("not enough connectors received");
             }
-            if (!connectorOutput ||
-                !connectorOutput.amount ||
-                !connectorOutput.script) {
-                throw new Error("Connector output not found");
+            const connectorLeaf = connectorsLeaves[connectorIndex];
+            const connectorTxId = hex.encode(sha256x2(connectorLeaf.toBytes(true)).reverse());
+            const connectorOutput = connectorLeaf.getOutput(0);
+            if (!connectorOutput) {
+                throw new Error("connector output not found");
             }
-            let forfeitTx = buildForfeitTx({
-                connectorInput: connectorOutpoint,
-                connectorAmount: connectorOutput.amount,
-                feeAmount: fees,
-                serverPkScript,
-                connectorPkScript: connectorOutput.script,
-                vtxoAmount: BigInt(vtxo.value),
-                vtxoInput: input,
-                vtxoPkScript: VtxoScript.decode(input.scripts).pkScript,
-            });
-            // add the tapscript
-            forfeitTx.updateInput(1, {
-                tapLeafScript: [input.tapLeafScript],
-            });
+            const connectorAmount = connectorOutput.amount;
+            const connectorPkScript = connectorOutput.script;
+            if (!connectorAmount || !connectorPkScript) {
+                throw new Error("invalid connector output");
+            }
+            connectorIndex++;
+            let forfeitTx = buildForfeitTx([
+                {
+                    txid: input.txid,
+                    index: input.vout,
+                    witnessUtxo: {
+                        amount: BigInt(vtxo.value),
+                        script: VtxoScript.decode(input.tapTree).pkScript,
+                    },
+                    sighashType: SigHash.DEFAULT,
+                    tapLeafScript: [input.forfeitTapLeafScript],
+                },
+                {
+                    txid: connectorTxId,
+                    index: 0,
+                    witnessUtxo: {
+                        amount: connectorAmount,
+                        script: connectorPkScript,
+                    },
+                },
+            ], forfeitOutputScript);
             // do not sign the connector input
-            forfeitTx = await this.identity.sign(forfeitTx, [1]);
+            forfeitTx = await this.identity.sign(forfeitTx, [0]);
             signedForfeits.push(base64.encode(forfeitTx.toPSBT()));
         }
-        await this.arkProvider.submitSignedForfeitTxs(signedForfeits, hasBoardingUtxos
-            ? base64.encode(settlementPsbt.toPSBT())
-            : undefined);
+        if (signedForfeits.length > 0 || hasBoardingUtxos) {
+            await this.arkProvider.submitSignedForfeitTxs(signedForfeits, hasBoardingUtxos
+                ? base64.encode(settlementPsbt.toPSBT())
+                : undefined);
+        }
+    }
+    async makeRegisterIntentSignature(bip322Inputs, outputs, onchainOutputsIndexes, cosignerPubKeys) {
+        const nowSeconds = Math.floor(Date.now() / 1000);
+        const { inputs, inputTapTrees, finalizer } = this.prepareBIP322Inputs(bip322Inputs);
+        const message = {
+            type: "register",
+            input_tap_trees: inputTapTrees,
+            onchain_output_indexes: onchainOutputsIndexes,
+            valid_at: nowSeconds,
+            expire_at: nowSeconds + 2 * 60, // valid for 2 minutes
+            cosigners_public_keys: cosignerPubKeys,
+        };
+        const encodedMessage = JSON.stringify(message, null, 0);
+        const signature = await this.makeBIP322Signature(encodedMessage, inputs, finalizer, outputs);
+        return {
+            signature,
+            message: encodedMessage,
+        };
+    }
+    async makeDeleteIntentSignature(bip322Inputs) {
+        const nowSeconds = Math.floor(Date.now() / 1000);
+        const { inputs, finalizer } = this.prepareBIP322Inputs(bip322Inputs);
+        const message = {
+            type: "delete",
+            expire_at: nowSeconds + 2 * 60, // valid for 2 minutes
+        };
+        const encodedMessage = JSON.stringify(message, null, 0);
+        const signature = await this.makeBIP322Signature(encodedMessage, inputs, finalizer);
+        return {
+            signature,
+            message: encodedMessage,
+        };
+    }
+    prepareBIP322Inputs(bip322Inputs) {
+        const inputs = [];
+        const inputTapTrees = [];
+        const inputExtraWitnesses = [];
+        for (const bip322Input of bip322Inputs) {
+            const vtxoScript = VtxoScript.decode(bip322Input.tapTree);
+            const sequence = getSequence(bip322Input);
+            inputs.push({
+                txid: hex.decode(bip322Input.txid),
+                index: bip322Input.vout,
+                witnessUtxo: {
+                    amount: BigInt(bip322Input.value),
+                    script: vtxoScript.pkScript,
+                },
+                sequence,
+                tapLeafScript: [bip322Input.intentTapLeafScript],
+            });
+            inputTapTrees.push(hex.encode(bip322Input.tapTree));
+            inputExtraWitnesses.push(bip322Input.extraWitness || []);
+        }
+        return {
+            inputs,
+            inputTapTrees,
+            finalizer: finalizeWithExtraWitnesses(inputExtraWitnesses),
+        };
     }
+    async makeBIP322Signature(message, inputs, finalizer, outputs) {
+        const proof = BIP322.create(message, inputs, outputs);
+        const signedProof = await this.identity.sign(proof);
+        return BIP322.signature(signedProof, finalizer);
+    }
+}
+Wallet.MIN_FEE_RATE = 1; // sats/vbyte
+function finalizeWithExtraWitnesses(inputExtraWitnesses) {
+    return function (tx) {
+        for (let i = 0; i < tx.inputsLength; i++) {
+            try {
+                tx.finalizeIdx(i);
+            }
+            catch (e) {
+                // handle empty witness error
+                if (e instanceof Error &&
+                    e.message.includes("finalize/taproot: empty witness")) {
+                    const tapLeaves = tx.getInput(i).tapLeafScript;
+                    if (!tapLeaves || tapLeaves.length <= 0)
+                        throw e;
+                    const [cb, s] = tapLeaves[0];
+                    const script = s.slice(0, -1);
+                    tx.updateInput(i, {
+                        finalScriptWitness: [
+                            script,
+                            TaprootControlBlock.encode(cb),
+                        ],
+                    });
+                }
+            }
+            const finalScriptWitness = tx.getInput(i).finalScriptWitness;
+            if (!finalScriptWitness)
+                throw new Error("input not finalized");
+            // input 0 and 1 spend the same pkscript
+            const extra = inputExtraWitnesses[i === 0 ? 0 : i - 1];
+            if (extra && extra.length > 0) {
+                tx.updateInput(i, {
+                    finalScriptWitness: [...extra, ...finalScriptWitness],
+                });
+            }
+        }
+    };
+}
+function getSequence(bip322Input) {
+    let sequence = undefined;
+    try {
+        const scriptWithLeafVersion = bip322Input.intentTapLeafScript[1];
+        const script = scriptWithLeafVersion.subarray(0, scriptWithLeafVersion.length - 1);
+        const params = CSVMultisigTapscript.decode(script).params;
+        sequence = bip68.encode(params.timelock.type === "blocks"
+            ? { blocks: Number(params.timelock.value) }
+            : { seconds: Number(params.timelock.value) });
+    }
+    catch { }
+    return sequence;
+}
+function isValidArkAddress(address) {
+    try {
+        ArkAddress.decode(address);
+        return true;
+    }
+    catch (e) {
+        return false;
+    }
+}
+/**
+ * Select virtual coins to reach a target amount, prioritizing those closer to expiry
+ * @param coins List of virtual coins to select from
+ * @param targetAmount Target amount to reach in satoshis
+ * @returns Selected coins and change amount
+ */
+function selectVirtualCoins(coins, targetAmount) {
+    // Sort VTXOs by expiry (ascending) and amount (descending)
+    const sortedCoins = [...coins].sort((a, b) => {
+        // First sort by expiry if available
+        const expiryA = a.virtualStatus.batchExpiry || Number.MAX_SAFE_INTEGER;
+        const expiryB = b.virtualStatus.batchExpiry || Number.MAX_SAFE_INTEGER;
+        if (expiryA !== expiryB) {
+            return expiryA - expiryB; // Earlier expiry first
+        }
+        // Then sort by amount
+        return b.value - a.value; // Larger amount first
+    });
+    const selectedCoins = [];
+    let selectedAmount = 0;
+    // Select coins until we have enough
+    for (const coin of sortedCoins) {
+        selectedCoins.push(coin);
+        selectedAmount += coin.value;
+        if (selectedAmount >= targetAmount) {
+            break;
+        }
+    }
+    if (selectedAmount === targetAmount) {
+        return { inputs: selectedCoins, changeAmount: 0n };
+    }
+    // Check if we have enough
+    if (selectedAmount < targetAmount) {
+        throw new Error("Insufficient funds");
+    }
+    const changeAmount = BigInt(selectedAmount - targetAmount);
+    return {
+        inputs: selectedCoins,
+        changeAmount,
+    };
+}
+/**
+ * Wait for incoming funds to the wallet
+ * @param wallet - The wallet to wait for incoming funds
+ * @returns A promise that resolves the next new coins received by the wallet's address
+ */
+export async function waitForIncomingFunds(wallet) {
+    let stopFunc;
+    const promise = new Promise((resolve) => {
+        wallet
+            .notifyIncomingFunds((coins) => {
+            resolve(coins);
+            if (stopFunc)
+                stopFunc();
+        })
+            .then((stop) => {
+            stopFunc = stop;
+        });
+    });
+    return promise;
 }
-// TODO get dust from ark server?
-Wallet.DUST_AMOUNT = BigInt(546); // Bitcoin dust limit in satoshis = 546
-Wallet.FEE_RATE = 1; // sats/vbyte