awesome-liquid-network/llms/lwk-llms.txt

# Liquid Wallet Kit (LWK) Complete Guide

## Overview

Liquid Wallet Kit (LWK) is a collection of Rust crates for [Liquid](https://liquid.net) Wallets. It provides modular building blocks for Liquid wallet development, enabling various use cases. Instead of a monolithic approach, LWK offers function-specific libraries for flexibility and ergonomic development.

## Features

* **Watch-Only wallet support**: Using CT descriptors
* **PSET based**: Transactions via Partially Signed Elements Transaction format
* **Multiple backends**: Electrum and Esplora support
* **Asset operations**: Issuance, reissuance, and burn support
* **Multisig support**: Create wallets controlled by any combination of hardware or software signers
* **Hardware signer support**: Currently Jade, with more coming soon
* **Cross-language bindings**: Python, Kotlin, Swift, and C# (experimental) 
* **WASM support**: Browser-based wallet development
* **JSON-RPC Server**: All functions available via JSON-RPC

## Architecture

LWK is structured into component crates:

* `lwk_cli`: CLI tool for LWK wallets
* `lwk_wollet`: Watch-only wallet library
* `lwk_signer`: Interacts with Liquid signers
* `lwk_jade`: Jade hardware wallet support
* `lwk_bindings`: Cross-language bindings
* `lwk_wasm`: WebAssembly support
* Other utility crates: `lwk_common`, `lwk_rpc_model`, `lwk_tiny_rpc`, etc.

## Installation

### Python Bindings

Install from PyPI:

```bash
pip install lwk
```

Or build from source:

```bash
cd lwk/lwk_bindings
virtualenv venv
source venv/bin/activate
pip install maturin maturin[patchelf] uniffi-bindgen
maturin develop
```

### CLI Tool

Install from crates.io:

```bash
cargo install lwk_cli
# OR with serial support for Jade hardware wallet
cargo install lwk_cli --features serial
```

Build from source:

```bash
git clone git@github.com:Blockstream/lwk.git
cd lwk
cargo install --path ./lwk_cli/
# OR with serial support
cargo install --path ./lwk_cli/ --features serial
```

## Python Usage Examples

### Core Concepts

1. **Network**: Represents the Liquid network (mainnet, testnet, regtest)
2. **Mnemonic**: BIP39 seed phrase for key generation
3. **Signer**: Handles signing PSETs (software or hardware)
4. **Wollet**: Watch-only wallet for managing addresses and transactions
5. **PSET**: Partially Signed Elements Transaction format

### Setting Up a Wallet

```python
from lwk import *

# Create or load mnemonic
mnemonic = Mnemonic("abandon abandon abandon abandon abandon abandon abandon abandon abandon abandon abandon about")

# Choose network
network = Network.regtest_default()  # or Network.testnet() or Network.mainnet()
policy_asset = network.policy_asset()  # L-BTC asset ID

# Create an Electrum client
client = ElectrumClient(node_electrum_url, tls=False, validate_domain=False)
# OR use default testnet client
# client = network.default_electrum_client()
# client.ping()  # Check connection

# Create a signer
signer = Signer(mnemonic, network)

# Get descriptor for watch-only wallet
desc = signer.wpkh_slip77_descriptor()  # Single-sig P2WPKH with SLIP77 blinding

# Create wallet
wollet = Wollet(network, desc, datadir=None)  # datadir=None means no persistence
```

### Address Generation

```python
# Generate a receive address
address_result = wollet.address(0)  # For index 0
address = address_result.address()
print(f"Address at index 0: {address}")

# Generate next unused address
next_address_result = wollet.address(None)  # None means next unused
next_address = next_address_result.address()
print(f"Next unused address: {next_address}")
```

### Checking Balance

```python
# Fund the wallet (in a test environment)
# node = TestEnv()  # For regtest environment
# funded_satoshi = 100000
# txid = node.send_to_address(address, funded_satoshi, asset=None)  # None = L-BTC
# wollet.wait_for_tx(txid, client)

# Get wallet balance
balances = wollet.balance()
lbtc_balance = balances[policy_asset]
print(f"L-BTC balance: {lbtc_balance} satoshi")

# Iterate through all assets in wallet
for asset_id, amount in balances.items():
    print(f"Asset {asset_id}: {amount} satoshi")
```

### Sending L-BTC

```python
# Create a transaction
recipient_address = "el1qqv8pmjjq942l6cjq69ygtt6gvmdmhesqmzazmwfsq7zwvan4kewdqmaqzegq50r2wdltkfsw9hw20zafydz4sqljz0eqe0vhc"
amount_to_send = 1000  # satoshi

# Create transaction builder
builder = network.tx_builder()
builder.add_lbtc_recipient(recipient_address, amount_to_send)

# Create unsigned PSET
unsigned_pset = builder.finish(wollet)

# Sign the PSET
signed_pset = signer.sign(unsigned_pset)

# Finalize PSET
finalized_pset = wollet.finalize(signed_pset)

# Extract transaction
tx = finalized_pset.extract_tx()

# Broadcast transaction
txid = client.broadcast(tx)
print(f"Transaction broadcasted with ID: {txid}")

# Wait for confirmation
wollet.wait_for_tx(txid, client)
```

### Listing Transactions

```python
# Scan wallet (typically needed for testnet/mainnet, not regtest)
update = client.full_scan(wollet)
wollet.apply_update(update)

# Get all transactions
transactions = wollet.transactions()
print(f"Number of transactions: {len(transactions)}")

# Iterate through transactions
for tx in transactions:
    print(f"Transaction ID: {tx}")
```

### Asset Issuance

```python
# Create a contract for the asset
contract = Contract(
    domain="example.com", 
    issuer_pubkey="0337cceec0beea0232ebe14cba0197a9fbd45fcf2ec946749de920e71434c2b904", 
    name="Example Asset", 
    precision=8, 
    ticker="EXA", 
    version=0
)

# Issue parameters
issued_asset_amount = 10000  # satoshi
reissuance_tokens = 1  # create 1 reissuance token
recipient_address = address  # sending to our own address

# Create transaction to issue asset
builder = network.tx_builder()
builder.issue_asset(issued_asset_amount, recipient_address, reissuance_tokens, recipient_address, contract)
unsigned_pset = builder.finish(wollet)
signed_pset = signer.sign(unsigned_pset)
finalized_pset = wollet.finalize(signed_pset)
tx = finalized_pset.extract_tx()
txid = client.broadcast(tx)

# Get the newly created asset ID
asset_id = signed_pset.inputs()[0].issuance_asset()
token_id = signed_pset.inputs()[0].issuance_token()

print(f"Issued asset ID: {asset_id}")
print(f"Reissuance token ID: {token_id}")

# Wait for confirmation
wollet.wait_for_tx(txid, client)
```

### Asset Reissuance

```python
# Reissue additional units of an existing asset
reissue_amount = 100  # satoshi

builder = network.tx_builder()
builder.reissue_asset(asset_id, reissue_amount, None, None)
unsigned_pset = builder.finish(wollet)
signed_pset = signer.sign(unsigned_pset)
finalized_pset = wollet.finalize(signed_pset)
tx = finalized_pset.extract_tx()
txid = client.broadcast(tx)

wollet.wait_for_tx(txid, client)
```

### Sending Assets

```python
# Send an asset to another address
recipient_address = "el1qqv8pmjjq942l6cjq69ygtt6gvmdmhesqmzazmwfsq7zwvan4kewdqmaqzegq50r2wdltkfsw9hw20zafydz4sqljz0eqe0vhc"
amount_to_send = 1000  # satoshi

builder = network.tx_builder()
builder.add_recipient(recipient_address, amount_to_send, asset_id)
unsigned_pset = builder.finish(wollet)
signed_pset = signer.sign(unsigned_pset)
finalized_pset = wollet.finalize(signed_pset)
tx = finalized_pset.extract_tx()
txid = client.broadcast(tx)

wollet.wait_for_tx(txid, client)
```

### Manual UTXO Selection

```python
# Get all available UTXOs
utxos = wollet.utxos()

# Create transaction with manual coin selection
builder = network.tx_builder()
builder.add_lbtc_recipient(recipient_address, amount_to_send)
builder.set_wallet_utxos([utxos[0].outpoint()])  # Only use first UTXO
unsigned_pset = builder.finish(wollet)

# Verify only one input
assert len(unsigned_pset.inputs()) == 1

# Continue with signing and broadcasting as usual
signed_pset = signer.sign(unsigned_pset)
finalized_pset = wollet.finalize(signed_pset)
tx = finalized_pset.extract_tx()
txid = client.broadcast(tx)
```

### Creating a Multisig Wallet

```python
# Create two signers
mnemonic1 = Mnemonic("abandon abandon abandon abandon abandon abandon abandon abandon abandon abandon abandon about")
mnemonic2 = Mnemonic("tissue mix draw siren diesel escape menu misery tube yellow zoo measure")

signer1 = Signer(mnemonic1, network)
signer2 = Signer(mnemonic2, network)

# Get key origin info and xpubs using BIP87 (for multisig)
xpub1 = signer1.keyorigin_xpub(Bip.new_bip87())
xpub2 = signer2.keyorigin_xpub(Bip.new_bip87())

# Create 2-of-2 multisig descriptor
desc_str = f"ct(elip151,elwsh(multi(2,{xpub1}/<0;1>/*,{xpub2}/<0;1>/*)))"
desc = WolletDescriptor(desc_str)

# Create wallet from descriptor
multisig_wallet = Wollet(network, desc, datadir=None)
```

### Using AMP2 (2-of-2 signing template)

```python
mnemonic = Mnemonic("abandon abandon abandon abandon abandon abandon abandon abandon abandon abandon abandon about")
network = Network.regtest_default()
signer = Signer(mnemonic, network)

# Create AMP2 template (Blockstream's 2-of-2 multisig format)
amp2 = Amp2.new_testnet()
xpub = signer.keyorigin_xpub(Bip.new_bip87())
desc = amp2.descriptor_from_str(xpub)
print(f"AMP2 descriptor: {desc.descriptor()}")
```

### Custom Persistence

```python
from lwk import *

# Create a custom persistence class
class PythonPersister(ForeignPersister):
  data = []

  def get(self, i):
    try:
      return self.data[i]
    except:
      None

  def push(self, update):
    self.data.append(update)

# Create a descriptor
desc = WolletDescriptor("ct(slip77(ab5824f4477b4ebb00a132adfd8eb0b7935cf24f6ac151add5d1913db374ce92),elwpkh([759db348/84'/1'/0']tpubDCRMaF33e44pcJj534LXVhFbHibPbJ5vuLhSSPFAw57kYURv4tzXFL6LSnd78bkjqdmE3USedkbpXJUPA1tdzKfuYSL7PianceqAhwL2UkA/<0;1>/*))#cch6wrnp")

network = Network.testnet()
client = network.default_electrum_client()

# Link the custom persister
persister = ForeignPersisterLink(PythonPersister())

# Create wallet with custom persister
wollet = Wollet.with_custom_persister(network, desc, persister)

# Update wallet state
update = client.full_scan(wollet)
wollet.apply_update(update)
total_txs = len(wollet.transactions())

# Test persistence by creating a new wallet instance
wollet = None  # Destroy original wallet
w2 = Wollet.with_custom_persister(network, desc, persister)
assert(total_txs == len(w2.transactions()))  # Data persisted correctly
```

### Unblinding Outputs

```python
# Externally unblind transaction outputs
tx = finalized_pset.extract_tx()
for output in tx.outputs():
    spk = output.script_pubkey()
    if output.is_fee():
        continue
    private_blinding_key = desc.derive_blinding_key(spk)
    # Roundtrip the blinding key as caller might persist it as bytes
    private_blinding_key = SecretKey.from_bytes(private_blinding_key.bytes())
    secrets = output.unblind(private_blinding_key)
    assert secrets.asset() == policy_asset
```

### PSET Details

```python
# Analyze a PSET
details = wollet.pset_details(pset)

# Get fee information
fee = details.balance().fee()
print(f"Fee: {fee} satoshi")

# Check which inputs are signed
signatures = details.signatures()
for sig in signatures:
    has_sig = sig.has_signature()
    missing_sig = sig.missing_signature()
    for pubkey, path in has_sig.items():
        print(f"Input signed by {pubkey} using key at path {path}")
    for pubkey, path in missing_sig.items():
        print(f"Input missing signature from {pubkey} at path {path}")

# Check recipients
recipients = details.balance().recipients()
for recipient in recipients:
    print(f"Output {recipient.vout()}: {recipient.value()} satoshi of asset {recipient.asset()} to {recipient.address()}")
```

## Using the CLI Tool

### Core Commands

```bash
# Start RPC server (default in Liquid Testnet)
lwk_cli server start

# Create new BIP39 mnemonic
lwk_cli signer generate

# Load a software signer
lwk_cli signer load-software --signer sw --persist false --mnemonic "abandon abandon abandon abandon abandon abandon abandon abandon abandon abandon abandon about"

# Create a p2wpkh wallet
DESC=$(lwk_cli signer singlesig-desc -signer sw --descriptor-blinding-key slip77 --kind wpkh | jq -r .descriptor)
lwk_cli wallet load --wallet ss -d $DESC

# Get wallet balance
lwk_cli wallet balance -w ss

# Stop the server
lwk_cli server stop
```

### Using with Jade Hardware Wallet

```bash
# Probe connected Jades
lwk_cli signer jade-id

# Load Jade
lwk_cli signer load-jade --signer <SET_A_NAME_FOR_THIS_JADE> --id <ID>

# Get xpub from loaded Jade
lwk_cli signer xpub --signer <NAME_OF_THIS_JADE> --kind <bip84, bip49 or bip87>
```

## Important Notes

1. **Liquid Blinding**: All Liquid transactions use confidential transactions, requiring blinding/unblinding.
2. **Asset IDs**: Keep track of asset IDs for issued assets and reissuance tokens.
3. **Network Selection**: Be careful to use the correct network (mainnet, testnet, regtest).
4. **Error Handling**: Check for insufficient funds, malformed transactions, etc.
5. **Deterministic Wallets**: All examples use BIP39 mnemonics for HD wallet derivation.
6. **Descriptor Types**: Various descriptor types are available (wpkh, wsh, etc.).
7. **Transaction Fees**: Remember to account for transaction fees in L-BTC.

## Glossary

- **CT descriptor**: Confidential Transaction descriptor, Liquid's version of Bitcoin output descriptors
- **PSET**: Partially Signed Elements Transaction, Liquid's version of PSBT
- **Wollet**: Watch-only wallet implementation in LWK
- **L-BTC**: Liquid Bitcoin, the main asset on Liquid Network
- **AMP2**: A specific 2-of-2 multisig configuration used by Blockstream
- **SLIP77**: A standard for deterministic blinding keys