@bitgo-beta/babylonlabs-io-btc-staking-ts 0.4.0-beta.86 → 0.4.0-beta.87

package/dist/index.cjs

@@ -51,6 +51,7 @@ __export(src_exports, {
   getScriptType: () => getScriptType,
   getUnbondingTxStakerSignature: () => getUnbondingTxStakerSignature,
   initBTCCurve: () => initBTCCurve,
+  isNativeSegwit: () => isNativeSegwit,
   isTaproot: () => isTaproot,
   isValidBabylonAddress: () => isValidBabylonAddress,
   isValidBitcoinAddress: () => isValidBitcoinAddress,
@@ -118,13 +119,13 @@ var StakingScriptData = class {
     if (allPks.length !== allPksSet.size) {
       return false;
     }
-    if (this.covenantThreshold == 0 || this.covenantThreshold > this.covenantKeys.length) {
+    if (this.covenantThreshold <= 0 || this.covenantThreshold > this.covenantKeys.length) {
       return false;
     }
-    if (this.stakingTimeLock == 0 || this.stakingTimeLock > 65535) {
+    if (this.stakingTimeLock <= 0 || this.stakingTimeLock > 65535) {
       return false;
     }
-    if (this.unbondingTimeLock == 0 || this.unbondingTimeLock > 65535) {
+    if (this.unbondingTimeLock <= 0 || this.unbondingTimeLock > 65535) {
       return false;
     }
     return true;
@@ -345,14 +346,28 @@ var isTaproot = (taprootAddress, network) => {
     if (decoded.version !== 1) {
       return false;
     }
-    switch (network) {
-      case import_bitcoinjs_lib2.networks.bitcoin:
-        return taprootAddress.startsWith("bc1p");
-      case import_bitcoinjs_lib2.networks.testnet:
-        return taprootAddress.startsWith("tb1p") || taprootAddress.startsWith("sb1p");
-      default:
-        return false;
+    if (network.bech32 === import_bitcoinjs_lib2.networks.bitcoin.bech32) {
+      return taprootAddress.startsWith("bc1p");
+    } else if (network.bech32 === import_bitcoinjs_lib2.networks.testnet.bech32) {
+      return taprootAddress.startsWith("tb1p") || taprootAddress.startsWith("sb1p");
     }
+    return false;
+  } catch (error) {
+    return false;
+  }
+};
+var isNativeSegwit = (segwitAddress, network) => {
+  try {
+    const decoded = import_bitcoinjs_lib2.address.fromBech32(segwitAddress);
+    if (decoded.version !== 0) {
+      return false;
+    }
+    if (network.bech32 === import_bitcoinjs_lib2.networks.bitcoin.bech32) {
+      return segwitAddress.startsWith("bc1q");
+    } else if (network.bech32 === import_bitcoinjs_lib2.networks.testnet.bech32) {
+      return segwitAddress.startsWith("tb1q");
+    }
+    return false;
   } catch (error) {
     return false;
   }
@@ -747,6 +762,7 @@ var REDEEM_VERSION = 192;
 
 // src/staking/transactions.ts
 var BTC_LOCKTIME_HEIGHT_TIME_CUTOFF = 5e8;
+var BTC_SLASHING_FRACTION_DIGITS = 4;
 function stakingTransaction(scripts, amount, changeAddress, inputUTXOs, network, feeRate, lockHeight) {
   if (amount <= 0 || feeRate <= 0) {
     throw new Error("Amount and fee rate must be bigger than 0");
@@ -960,7 +976,7 @@ function slashingTransaction(scripts, scriptTree, transaction, slashingPkScriptH
   if (slashingRate <= 0 || slashingRate >= 1) {
     throw new Error("Slashing rate must be between 0 and 1");
   }
-  slashingRate = parseFloat(slashingRate.toFixed(2));
+  slashingRate = parseFloat(slashingRate.toFixed(BTC_SLASHING_FRACTION_DIGITS));
   if (minimumFee <= 0 || !Number.isInteger(minimumFee)) {
     throw new Error("Minimum fee must be a positve integer");
   }
@@ -986,9 +1002,12 @@ function slashingTransaction(scripts, scriptTree, transaction, slashingPkScriptH
     controlBlock: p2tr.witness[p2tr.witness.length - 1]
   };
   const stakingAmount = transaction.outs[outputIndex].value;
-  const slashingAmount = Math.floor(stakingAmount * slashingRate);
-  if (slashingAmount <= BTC_DUST_SAT) {
-    throw new Error("Slashing amount is less than dust limit");
+  const slashingAmount = Math.round(stakingAmount * slashingRate);
+  const slashingOutput = Buffer.from(slashingPkScriptHex, "hex");
+  if (import_bitcoinjs_lib6.opcodes.OP_RETURN != slashingOutput[0]) {
+    if (slashingAmount <= BTC_DUST_SAT) {
+      throw new Error("Slashing amount is less than dust limit");
+    }
   }
   const userFunds = stakingAmount - slashingAmount - minimumFee;
   if (userFunds <= BTC_DUST_SAT) {
@@ -1009,7 +1028,7 @@ function slashingTransaction(scripts, scriptTree, transaction, slashingPkScriptH
     sequence: NON_RBF_SEQUENCE
   });
   psbt.addOutput({
-    script: Buffer.from(slashingPkScriptHex, "hex"),
+    script: slashingOutput,
     value: slashingAmount
   });
   const changeOutput = import_bitcoinjs_lib6.payments.p2tr({
@@ -1874,7 +1893,6 @@ var getBabylonParamByVersion = (version, babylonParams) => {
 
 // src/staking/manager.ts
 var import_bitcoinjs_lib10 = require("bitcoinjs-lib");
-var import_encoding2 = require("@cosmjs/encoding");
 var import_babylon_proto_ts = require("@babylonlabs-io/babylon-proto-ts");
 var import_pop = require("@babylonlabs-io/babylon-proto-ts/dist/generated/babylon/btcstaking/v1/pop");
 
@@ -1895,9 +1913,6 @@ var reverseBuffer = (buffer) => {
   }
   return clonedBuffer;
 };
-var uint8ArrayToHex = (uint8Array) => {
-  return Array.from(uint8Array).map((byte) => byte.toString(16).padStart(2, "0")).join("");
-};
 
 // src/staking/manager.ts
 var SigningStep = /* @__PURE__ */ ((SigningStep2) => {
@@ -1931,7 +1946,9 @@ var BabylonBtcStakingManager = class {
    * @param babylonBtcTipHeight - The Babylon BTC tip height.
    * @param inputUTXOs - The UTXOs that will be used to pay for the staking
    * transaction.
-   * @param feeRate - The fee rate in satoshis per byte.
+   * @param feeRate - The fee rate in satoshis per byte. Typical value for the
+   * fee rate is above 1. If the fee rate is too low, the transaction will not
+   * be included in a block.
    * @param babylonAddress - The Babylon bech32 encoded address of the staker.
    * @returns The signed babylon pre-staking registration transaction in base64 
    * format.
@@ -1989,7 +2006,8 @@ var BabylonBtcStakingManager = class {
    * @param stakingTxHeight - The BTC height in which the staking transaction 
    * is included.
    * @param stakingInput - The staking inputs.
-   * @param inclusionProof - The inclusion proof of the staking transaction.
+   * @param inclusionProof - Merkle Proof of Inclusion: Verifies transaction
+   * inclusion in a Bitcoin block that is k-deep.
    * @param babylonAddress - The Babylon bech32 encoded address of the staker.
    * @returns The signed babylon transaction in base64 format.
    */
@@ -2037,7 +2055,9 @@ var BabylonBtcStakingManager = class {
    * @param stakingInput - The staking inputs.
    * @param inputUTXOs - The UTXOs that will be used to pay for the staking
    * transaction.
-   * @param feeRate - The fee rate in satoshis per byte.
+   * @param feeRate - The fee rate in satoshis per byte. Typical value for the
+   * fee rate is above 1. If the fee rate is too low, the transaction will not
+   * be included in a block.
    * @returns The estimated BTC fee in satoshis.
    */
   estimateBtcStakingFee(stakerBtcInfo, babylonBtcTipHeight, stakingInput, inputUTXOs, feeRate) {
@@ -2198,7 +2218,9 @@ var BabylonBtcStakingManager = class {
    * @param stakingParamsVersion - The params version that was used to create the
    * delegation in Babylon chain
    * @param earlyUnbondingTx - The early unbonding transaction.
-   * @param feeRate - The fee rate in satoshis per byte.
+   * @param feeRate - The fee rate in satoshis per byte. Typical value for the
+   * fee rate is above 1. If the fee rate is too low, the transaction will not
+   * be included in a block.
    * @returns The signed withdrawal transaction and its fee.
    */
   async createSignedBtcWithdrawEarlyUnbondedTransaction(stakerBtcInfo, stakingInput, stakingParamsVersion, earlyUnbondingTx, feeRate) {
@@ -2235,7 +2257,9 @@ var BabylonBtcStakingManager = class {
    * @param stakingParamsVersion - The params version that was used to create the
    * delegation in Babylon chain
    * @param stakingTx - The staking transaction.
-   * @param feeRate - The fee rate in satoshis per byte.
+   * @param feeRate - The fee rate in satoshis per byte. Typical value for the
+   * fee rate is above 1. If the fee rate is too low, the transaction will not
+   * be included in a block.
    * @returns The signed withdrawal transaction and its fee.
    */
   async createSignedBtcWithdrawStakingExpiredTransaction(stakerBtcInfo, stakingInput, stakingParamsVersion, stakingTx, feeRate) {
@@ -2272,7 +2296,9 @@ var BabylonBtcStakingManager = class {
    * @param stakingParamsVersion - The params version that was used to create the
    * delegation in Babylon chain
    * @param slashingTx - The slashing transaction.
-   * @param feeRate - The fee rate in satoshis per byte.
+   * @param feeRate - The fee rate in satoshis per byte. Typical value for the
+   * fee rate is above 1. If the fee rate is too low, the transaction will not
+   * be included in a block.
    * @returns The signed withdrawal transaction and its fee.
    */
   async createSignedBtcWithdrawSlashingTransaction(stakerBtcInfo, stakingInput, stakingParamsVersion, slashingTx, feeRate) {
@@ -2305,20 +2331,29 @@ var BabylonBtcStakingManager = class {
    * @param bech32Address - The staker's bech32 address.
    * @returns The proof of possession.
    */
-  async createProofOfPossession(bech32Address) {
-    if (!this.btcProvider.signMessage) {
-      throw new Error("Sign message function not found");
+  async createProofOfPossession(bech32Address, stakerBtcAddress) {
+    let sigType = import_pop.BTCSigType.ECDSA;
+    if (isTaproot(stakerBtcAddress, this.network) || isNativeSegwit(stakerBtcAddress, this.network)) {
+      sigType = import_pop.BTCSigType.BIP322;
     }
-    const bech32AddressHex = uint8ArrayToHex((0, import_encoding2.fromBech32)(bech32Address).data);
     const signedBabylonAddress = await this.btcProvider.signMessage(
       "proof-of-possession" /* PROOF_OF_POSSESSION */,
-      bech32AddressHex,
-      "ecdsa"
-    );
-    const ecdsaSig = Uint8Array.from(Buffer.from(signedBabylonAddress, "base64"));
+      bech32Address,
+      sigType === import_pop.BTCSigType.BIP322 ? "bip322-simple" : "ecdsa"
+    );
+    let btcSig;
+    if (sigType === import_pop.BTCSigType.BIP322) {
+      const bip322Sig = import_pop.BIP322Sig.fromPartial({
+        address: stakerBtcAddress,
+        sig: Buffer.from(signedBabylonAddress, "base64")
+      });
+      btcSig = import_pop.BIP322Sig.encode(bip322Sig).finish();
+    } else {
+      btcSig = Buffer.from(signedBabylonAddress, "base64");
+    }
     return {
-      btcSigType: import_pop.BTCSigType.ECDSA,
-      btcSig: ecdsaSig
+      btcSigType: sigType,
+      btcSig
     };
   }
   /**
@@ -2386,7 +2421,10 @@ var BabylonBtcStakingManager = class {
     if (!unbondingSignatures) {
       throw new Error("No signature found in the unbonding output slashing PSBT");
     }
-    const proofOfPossession = await this.createProofOfPossession(bech32Address);
+    const proofOfPossession = await this.createProofOfPossession(
+      bech32Address,
+      stakerBtcInfo.address
+    );
     const msg = import_babylon_proto_ts.btcstakingtx.MsgCreateBTCDelegation.fromPartial({
       stakerAddr: bech32Address,
       pop: proofOfPossession,
@@ -2504,6 +2542,7 @@ var getUnbondingTxStakerSignature = (unbondingTx) => {
   getScriptType,
   getUnbondingTxStakerSignature,
   initBTCCurve,
+  isNativeSegwit,
   isTaproot,
   isValidBabylonAddress,
   isValidBitcoinAddress,

package/dist/index.d.cts

@@ -548,6 +548,14 @@ export declare const isValidBitcoinAddress: (btcAddress: string, network: networ
  * @returns {boolean} - True if the address is a Taproot address, otherwise false.
  */
 export declare const isTaproot: (taprootAddress: string, network: networks.Network) => boolean;
+/**
+ * Check whether the given address is a Native SegWit address.
+ *
+ * @param {string} segwitAddress - The Bitcoin bech32 encoded address to check.
+ * @param {object} network - The Bitcoin network (e.g., bitcoin.networks.bitcoin).
+ * @returns {boolean} - True if the address is a Native SegWit address, otherwise false.
+ */
+export declare const isNativeSegwit: (segwitAddress: string, network: networks.Network) => boolean;
 /**
  * Check whether the given public key is a valid public key without a coordinate.
  *
@@ -730,9 +738,20 @@ export declare const getBabylonParamByBtcHeight: (height: number, babylonParamsV
 export declare const getBabylonParamByVersion: (version: number, babylonParams: VersionedStakingParams[]) => StakingParams;
 export interface BtcProvider {
 	signPsbt(signingStep: SigningStep, psbtHex: string): Promise<string>;
-	signMessage?: (signingStep: SigningStep, message: string, type: "ecdsa") => Promise<string>;
+	signMessage: (signingStep: SigningStep, message: string, type: "ecdsa" | "bip322-simple") => Promise<string>;
 }
 export interface BabylonProvider {
+	/**
+	 * Signs a Babylon chain transaction using the provided signing step.
+	 * This is primarily used for signing MsgCreateBTCDelegation transactions
+	 * which register the BTC delegation on the Babylon Genesis chain.
+	 *
+	 * @param {SigningStep} signingStep - The current signing step context
+	 * @param {object} msg - The Cosmos SDK transaction message to sign
+	 * @param {string} msg.typeUrl - The Protobuf type URL identifying the message type
+	 * @param {T} msg.value - The transaction message data matching the typeUrl
+	 * @returns {Promise<Uint8Array>} The signed transaction bytes
+	 */
 	signTransaction: <T extends object>(signingStep: SigningStep, msg: {
 		typeUrl: string;
 		value: T;
@@ -774,7 +793,9 @@ export declare class BabylonBtcStakingManager {
 	 * @param babylonBtcTipHeight - The Babylon BTC tip height.
 	 * @param inputUTXOs - The UTXOs that will be used to pay for the staking
 	 * transaction.
-	 * @param feeRate - The fee rate in satoshis per byte.
+	 * @param feeRate - The fee rate in satoshis per byte. Typical value for the
+	 * fee rate is above 1. If the fee rate is too low, the transaction will not
+	 * be included in a block.
 	 * @param babylonAddress - The Babylon bech32 encoded address of the staker.
 	 * @returns The signed babylon pre-staking registration transaction in base64
 	 * format.
@@ -794,7 +815,8 @@ export declare class BabylonBtcStakingManager {
 	 * @param stakingTxHeight - The BTC height in which the staking transaction
 	 * is included.
 	 * @param stakingInput - The staking inputs.
-	 * @param inclusionProof - The inclusion proof of the staking transaction.
+	 * @param inclusionProof - Merkle Proof of Inclusion: Verifies transaction
+	 * inclusion in a Bitcoin block that is k-deep.
 	 * @param babylonAddress - The Babylon bech32 encoded address of the staker.
 	 * @returns The signed babylon transaction in base64 format.
 	 */
@@ -810,7 +832,9 @@ export declare class BabylonBtcStakingManager {
 	 * @param stakingInput - The staking inputs.
 	 * @param inputUTXOs - The UTXOs that will be used to pay for the staking
 	 * transaction.
-	 * @param feeRate - The fee rate in satoshis per byte.
+	 * @param feeRate - The fee rate in satoshis per byte. Typical value for the
+	 * fee rate is above 1. If the fee rate is too low, the transaction will not
+	 * be included in a block.
 	 * @returns The estimated BTC fee in satoshis.
 	 */
 	estimateBtcStakingFee(stakerBtcInfo: StakerInfo, babylonBtcTipHeight: number, stakingInput: StakingInputs, inputUTXOs: UTXO[], feeRate: number): number;
@@ -868,7 +892,9 @@ export declare class BabylonBtcStakingManager {
 	 * @param stakingParamsVersion - The params version that was used to create the
 	 * delegation in Babylon chain
 	 * @param earlyUnbondingTx - The early unbonding transaction.
-	 * @param feeRate - The fee rate in satoshis per byte.
+	 * @param feeRate - The fee rate in satoshis per byte. Typical value for the
+	 * fee rate is above 1. If the fee rate is too low, the transaction will not
+	 * be included in a block.
 	 * @returns The signed withdrawal transaction and its fee.
 	 */
 	createSignedBtcWithdrawEarlyUnbondedTransaction(stakerBtcInfo: StakerInfo, stakingInput: StakingInputs, stakingParamsVersion: number, earlyUnbondingTx: Transaction, feeRate: number): Promise<TransactionResult>;
@@ -881,7 +907,9 @@ export declare class BabylonBtcStakingManager {
 	 * @param stakingParamsVersion - The params version that was used to create the
 	 * delegation in Babylon chain
 	 * @param stakingTx - The staking transaction.
-	 * @param feeRate - The fee rate in satoshis per byte.
+	 * @param feeRate - The fee rate in satoshis per byte. Typical value for the
+	 * fee rate is above 1. If the fee rate is too low, the transaction will not
+	 * be included in a block.
 	 * @returns The signed withdrawal transaction and its fee.
 	 */
 	createSignedBtcWithdrawStakingExpiredTransaction(stakerBtcInfo: StakerInfo, stakingInput: StakingInputs, stakingParamsVersion: number, stakingTx: Transaction, feeRate: number): Promise<TransactionResult>;
@@ -894,7 +922,9 @@ export declare class BabylonBtcStakingManager {
 	 * @param stakingParamsVersion - The params version that was used to create the
 	 * delegation in Babylon chain
 	 * @param slashingTx - The slashing transaction.
-	 * @param feeRate - The fee rate in satoshis per byte.
+	 * @param feeRate - The fee rate in satoshis per byte. Typical value for the
+	 * fee rate is above 1. If the fee rate is too low, the transaction will not
+	 * be included in a block.
 	 * @returns The signed withdrawal transaction and its fee.
 	 */
 	createSignedBtcWithdrawSlashingTransaction(stakerBtcInfo: StakerInfo, stakingInput: StakingInputs, stakingParamsVersion: number, slashingTx: Transaction, feeRate: number): Promise<TransactionResult>;
@@ -903,7 +933,7 @@ export declare class BabylonBtcStakingManager {
 	 * @param bech32Address - The staker's bech32 address.
 	 * @returns The proof of possession.
 	 */
-	createProofOfPossession(bech32Address: string): Promise<ProofOfPossessionBTC>;
+	createProofOfPossession(bech32Address: string, stakerBtcAddress: string): Promise<ProofOfPossessionBTC>;
 	/**
 	 * Creates the unbonding, slashing, and unbonding slashing transactions and
 	 * PSBTs.

package/dist/index.js

@@ -46,13 +46,13 @@ var StakingScriptData = class {
     if (allPks.length !== allPksSet.size) {
       return false;
     }
-    if (this.covenantThreshold == 0 || this.covenantThreshold > this.covenantKeys.length) {
+    if (this.covenantThreshold <= 0 || this.covenantThreshold > this.covenantKeys.length) {
       return false;
     }
-    if (this.stakingTimeLock == 0 || this.stakingTimeLock > 65535) {
+    if (this.stakingTimeLock <= 0 || this.stakingTimeLock > 65535) {
       return false;
     }
-    if (this.unbondingTimeLock == 0 || this.unbondingTimeLock > 65535) {
+    if (this.unbondingTimeLock <= 0 || this.unbondingTimeLock > 65535) {
       return false;
     }
     return true;
@@ -245,7 +245,7 @@ var StakingError = class _StakingError extends Error {
 };
 
 // src/staking/transactions.ts
-import { Psbt, Transaction as Transaction2, payments as payments3, script as script2, address as address3 } from "bitcoinjs-lib";
+import { Psbt, Transaction as Transaction2, payments as payments3, script as script2, address as address3, opcodes as opcodes3 } from "bitcoinjs-lib";
 
 // src/constants/dustSat.ts
 var BTC_DUST_SAT = 546;
@@ -273,14 +273,28 @@ var isTaproot = (taprootAddress, network) => {
     if (decoded.version !== 1) {
       return false;
     }
-    switch (network) {
-      case networks.bitcoin:
-        return taprootAddress.startsWith("bc1p");
-      case networks.testnet:
-        return taprootAddress.startsWith("tb1p") || taprootAddress.startsWith("sb1p");
-      default:
-        return false;
+    if (network.bech32 === networks.bitcoin.bech32) {
+      return taprootAddress.startsWith("bc1p");
+    } else if (network.bech32 === networks.testnet.bech32) {
+      return taprootAddress.startsWith("tb1p") || taprootAddress.startsWith("sb1p");
     }
+    return false;
+  } catch (error) {
+    return false;
+  }
+};
+var isNativeSegwit = (segwitAddress, network) => {
+  try {
+    const decoded = address.fromBech32(segwitAddress);
+    if (decoded.version !== 0) {
+      return false;
+    }
+    if (network.bech32 === networks.bitcoin.bech32) {
+      return segwitAddress.startsWith("bc1q");
+    } else if (network.bech32 === networks.testnet.bech32) {
+      return segwitAddress.startsWith("tb1q");
+    }
+    return false;
   } catch (error) {
     return false;
   }
@@ -675,6 +689,7 @@ var REDEEM_VERSION = 192;
 
 // src/staking/transactions.ts
 var BTC_LOCKTIME_HEIGHT_TIME_CUTOFF = 5e8;
+var BTC_SLASHING_FRACTION_DIGITS = 4;
 function stakingTransaction(scripts, amount, changeAddress, inputUTXOs, network, feeRate, lockHeight) {
   if (amount <= 0 || feeRate <= 0) {
     throw new Error("Amount and fee rate must be bigger than 0");
@@ -888,7 +903,7 @@ function slashingTransaction(scripts, scriptTree, transaction, slashingPkScriptH
   if (slashingRate <= 0 || slashingRate >= 1) {
     throw new Error("Slashing rate must be between 0 and 1");
   }
-  slashingRate = parseFloat(slashingRate.toFixed(2));
+  slashingRate = parseFloat(slashingRate.toFixed(BTC_SLASHING_FRACTION_DIGITS));
   if (minimumFee <= 0 || !Number.isInteger(minimumFee)) {
     throw new Error("Minimum fee must be a positve integer");
   }
@@ -914,9 +929,12 @@ function slashingTransaction(scripts, scriptTree, transaction, slashingPkScriptH
     controlBlock: p2tr.witness[p2tr.witness.length - 1]
   };
   const stakingAmount = transaction.outs[outputIndex].value;
-  const slashingAmount = Math.floor(stakingAmount * slashingRate);
-  if (slashingAmount <= BTC_DUST_SAT) {
-    throw new Error("Slashing amount is less than dust limit");
+  const slashingAmount = Math.round(stakingAmount * slashingRate);
+  const slashingOutput = Buffer.from(slashingPkScriptHex, "hex");
+  if (opcodes3.OP_RETURN != slashingOutput[0]) {
+    if (slashingAmount <= BTC_DUST_SAT) {
+      throw new Error("Slashing amount is less than dust limit");
+    }
   }
   const userFunds = stakingAmount - slashingAmount - minimumFee;
   if (userFunds <= BTC_DUST_SAT) {
@@ -937,7 +955,7 @@ function slashingTransaction(scripts, scriptTree, transaction, slashingPkScriptH
     sequence: NON_RBF_SEQUENCE
   });
   psbt.addOutput({
-    script: Buffer.from(slashingPkScriptHex, "hex"),
+    script: slashingOutput,
     value: slashingAmount
   });
   const changeOutput = payments3.p2tr({
@@ -1575,7 +1593,7 @@ var Staking = class {
 };
 
 // src/staking/observable/observableStakingScript.ts
-import { opcodes as opcodes3, script as script3 } from "bitcoinjs-lib";
+import { opcodes as opcodes4, script as script3 } from "bitcoinjs-lib";
 var ObservableStakingScriptData = class extends StakingScriptData {
   constructor(stakerKey, finalityProviderKeys, covenantKeys, covenantThreshold, stakingTimelock, unbondingTimelock, magicBytes) {
     super(
@@ -1618,7 +1636,7 @@ var ObservableStakingScriptData = class extends StakingScriptData {
       this.finalityProviderKeys[0],
       stakingTimeLock
     ]);
-    return script3.compile([opcodes3.OP_RETURN, serializedStakingData]);
+    return script3.compile([opcodes4.OP_RETURN, serializedStakingData]);
   }
   /**
    * Builds the staking scripts.
@@ -1802,13 +1820,13 @@ var getBabylonParamByVersion = (version, babylonParams) => {
 
 // src/staking/manager.ts
 import { Psbt as Psbt3 } from "bitcoinjs-lib";
-import { fromBech32 as fromBech322 } from "@cosmjs/encoding";
 import {
   btccheckpoint,
   btcstaking,
   btcstakingtx
 } from "@babylonlabs-io/babylon-proto-ts";
 import {
+  BIP322Sig,
   BTCSigType
 } from "@babylonlabs-io/babylon-proto-ts/dist/generated/babylon/btcstaking/v1/pop";
 
@@ -1829,9 +1847,6 @@ var reverseBuffer = (buffer) => {
   }
   return clonedBuffer;
 };
-var uint8ArrayToHex = (uint8Array) => {
-  return Array.from(uint8Array).map((byte) => byte.toString(16).padStart(2, "0")).join("");
-};
 
 // src/staking/manager.ts
 var SigningStep = /* @__PURE__ */ ((SigningStep2) => {
@@ -1865,7 +1880,9 @@ var BabylonBtcStakingManager = class {
    * @param babylonBtcTipHeight - The Babylon BTC tip height.
    * @param inputUTXOs - The UTXOs that will be used to pay for the staking
    * transaction.
-   * @param feeRate - The fee rate in satoshis per byte.
+   * @param feeRate - The fee rate in satoshis per byte. Typical value for the
+   * fee rate is above 1. If the fee rate is too low, the transaction will not
+   * be included in a block.
    * @param babylonAddress - The Babylon bech32 encoded address of the staker.
    * @returns The signed babylon pre-staking registration transaction in base64 
    * format.
@@ -1923,7 +1940,8 @@ var BabylonBtcStakingManager = class {
    * @param stakingTxHeight - The BTC height in which the staking transaction 
    * is included.
    * @param stakingInput - The staking inputs.
-   * @param inclusionProof - The inclusion proof of the staking transaction.
+   * @param inclusionProof - Merkle Proof of Inclusion: Verifies transaction
+   * inclusion in a Bitcoin block that is k-deep.
    * @param babylonAddress - The Babylon bech32 encoded address of the staker.
    * @returns The signed babylon transaction in base64 format.
    */
@@ -1971,7 +1989,9 @@ var BabylonBtcStakingManager = class {
    * @param stakingInput - The staking inputs.
    * @param inputUTXOs - The UTXOs that will be used to pay for the staking
    * transaction.
-   * @param feeRate - The fee rate in satoshis per byte.
+   * @param feeRate - The fee rate in satoshis per byte. Typical value for the
+   * fee rate is above 1. If the fee rate is too low, the transaction will not
+   * be included in a block.
    * @returns The estimated BTC fee in satoshis.
    */
   estimateBtcStakingFee(stakerBtcInfo, babylonBtcTipHeight, stakingInput, inputUTXOs, feeRate) {
@@ -2132,7 +2152,9 @@ var BabylonBtcStakingManager = class {
    * @param stakingParamsVersion - The params version that was used to create the
    * delegation in Babylon chain
    * @param earlyUnbondingTx - The early unbonding transaction.
-   * @param feeRate - The fee rate in satoshis per byte.
+   * @param feeRate - The fee rate in satoshis per byte. Typical value for the
+   * fee rate is above 1. If the fee rate is too low, the transaction will not
+   * be included in a block.
    * @returns The signed withdrawal transaction and its fee.
    */
   async createSignedBtcWithdrawEarlyUnbondedTransaction(stakerBtcInfo, stakingInput, stakingParamsVersion, earlyUnbondingTx, feeRate) {
@@ -2169,7 +2191,9 @@ var BabylonBtcStakingManager = class {
    * @param stakingParamsVersion - The params version that was used to create the
    * delegation in Babylon chain
    * @param stakingTx - The staking transaction.
-   * @param feeRate - The fee rate in satoshis per byte.
+   * @param feeRate - The fee rate in satoshis per byte. Typical value for the
+   * fee rate is above 1. If the fee rate is too low, the transaction will not
+   * be included in a block.
    * @returns The signed withdrawal transaction and its fee.
    */
   async createSignedBtcWithdrawStakingExpiredTransaction(stakerBtcInfo, stakingInput, stakingParamsVersion, stakingTx, feeRate) {
@@ -2206,7 +2230,9 @@ var BabylonBtcStakingManager = class {
    * @param stakingParamsVersion - The params version that was used to create the
    * delegation in Babylon chain
    * @param slashingTx - The slashing transaction.
-   * @param feeRate - The fee rate in satoshis per byte.
+   * @param feeRate - The fee rate in satoshis per byte. Typical value for the
+   * fee rate is above 1. If the fee rate is too low, the transaction will not
+   * be included in a block.
    * @returns The signed withdrawal transaction and its fee.
    */
   async createSignedBtcWithdrawSlashingTransaction(stakerBtcInfo, stakingInput, stakingParamsVersion, slashingTx, feeRate) {
@@ -2239,20 +2265,29 @@ var BabylonBtcStakingManager = class {
    * @param bech32Address - The staker's bech32 address.
    * @returns The proof of possession.
    */
-  async createProofOfPossession(bech32Address) {
-    if (!this.btcProvider.signMessage) {
-      throw new Error("Sign message function not found");
+  async createProofOfPossession(bech32Address, stakerBtcAddress) {
+    let sigType = BTCSigType.ECDSA;
+    if (isTaproot(stakerBtcAddress, this.network) || isNativeSegwit(stakerBtcAddress, this.network)) {
+      sigType = BTCSigType.BIP322;
     }
-    const bech32AddressHex = uint8ArrayToHex(fromBech322(bech32Address).data);
     const signedBabylonAddress = await this.btcProvider.signMessage(
       "proof-of-possession" /* PROOF_OF_POSSESSION */,
-      bech32AddressHex,
-      "ecdsa"
-    );
-    const ecdsaSig = Uint8Array.from(Buffer.from(signedBabylonAddress, "base64"));
+      bech32Address,
+      sigType === BTCSigType.BIP322 ? "bip322-simple" : "ecdsa"
+    );
+    let btcSig;
+    if (sigType === BTCSigType.BIP322) {
+      const bip322Sig = BIP322Sig.fromPartial({
+        address: stakerBtcAddress,
+        sig: Buffer.from(signedBabylonAddress, "base64")
+      });
+      btcSig = BIP322Sig.encode(bip322Sig).finish();
+    } else {
+      btcSig = Buffer.from(signedBabylonAddress, "base64");
+    }
     return {
-      btcSigType: BTCSigType.ECDSA,
-      btcSig: ecdsaSig
+      btcSigType: sigType,
+      btcSig
     };
   }
   /**
@@ -2320,7 +2355,10 @@ var BabylonBtcStakingManager = class {
     if (!unbondingSignatures) {
       throw new Error("No signature found in the unbonding output slashing PSBT");
     }
-    const proofOfPossession = await this.createProofOfPossession(bech32Address);
+    const proofOfPossession = await this.createProofOfPossession(
+      bech32Address,
+      stakerBtcInfo.address
+    );
     const msg = btcstakingtx.MsgCreateBTCDelegation.fromPartial({
       stakerAddr: bech32Address,
       pop: proofOfPossession,
@@ -2437,6 +2475,7 @@ export {
   getScriptType,
   getUnbondingTxStakerSignature,
   initBTCCurve,
+  isNativeSegwit,
   isTaproot,
   isValidBabylonAddress,
   isValidBitcoinAddress,

package/package.json

@@ -1,6 +1,6 @@
 {
   "name": "@bitgo-beta/babylonlabs-io-btc-staking-ts",
-  "version": "0.4.0-beta.86",
+  "version": "0.4.0-beta.87",
   "description": "Library exposing methods for the creation and consumption of Bitcoin transactions pertaining to Babylon's Bitcoin Staking protocol.",
   "module": "dist/index.js",
   "main": "dist/index.cjs",
@@ -45,5 +45,5 @@
   "publishConfig": {
     "access": "public"
   },
-  "gitHead": "ed743c6986e650e08486f3f0be7c4ff065a2f8fb"
+  "gitHead": "14020d4881c54dbddf4e27de283d0e35ea016045"
 }