Add `FundingNeeded` event for splicing #4290

jkczyz · 2025-12-18T16:11:08Z

Rather than requiring the user to pass FundingTxInputs when initiating a splice, generate a FundingNeeded event once the channel has become quiescent. This simplifies error handling and UTXO / change address clean-up by consolidating it in SpliceFailed event handling.

Later, this event will be used for opportunistic contributions (i.e., when the counterparty wins quiescence or initiates), dual-funding, and RBF.

Based on #4261.

This is still fairly rough. It does not yet include any code for creating a FundingNegotiationContext from a FundingContribution. The former may need to a dedicated struct instead so that any data needed from ChannelManager or ChannelContext can be produced internally. Alternatively, that data could be included in FundingContribution, but it would need to be serializable.

ldk-reviews-bot · 2025-12-18T16:11:11Z

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jkczyz · 2026-01-12T18:03:27Z

@TheBlueMatt @wpaulino Looking for some high-level feedback on the API introduced in the last commit. In summary:

User passes SpliceContribution -- which no longer contains any FundingTxInputs -- to ChannelManager::splice_channel
Upon quiescence LDK generates a FundingNeeded event which contains a FundingTemplate
User calls FundingTemplate::build or FundingTemplate::build_sync with a WalletSource or WalletSourceSync, respectively, to produce a FundingContribution
User passes FundingContribution -- which contains the FundingTxInputs -- to ChannelManager::funding_contributed
LDK validates that the FundingContribution can pay for inputs / outputs, causing LDK to either send splice_init or produce a SpliceFailed event.

The same mechanism can be used later for contributing inputs for counterparty-initiated splices or v2 channel opens since FundingTemplate and FundingContribution contains the context.

Test code still needs to be fixed up, and change_script generation will follow in another commit.

wpaulino

The API design LGTM, though there's one issue with WalletSource. One thing users need to keep in mind now is that from the moment they receive FundingNeeded, they need to act quickly to ensure the counterparty doesn't disconnect due to quiescence taking too long.

wpaulino · 2026-01-12T19:37:10Z

lightning/src/events/bump_transaction/sync.rs

 	fn list_confirmed_utxos(&self) -> Result<Vec<Utxo>, ()>;
+
+	///
+	fn select_confirmed_utxos(


Adding this here now requires implementers to satisfy this method when, in the context of anchor channels, WalletSource is only intended to be used such that we perform coin selection on behalf of the user. Ideally, we also give users the option between choosing WalletSource/CoinSelectionSource when funding channels.

Right, I guess I'm a bit confused why we can't use select_confirmed_utxos as-is? Indeed the claim_id is annoying, but we can make that either an enum across a ClaimId and some unit value describing a splice or just make it an Option. Aside from that it seems to be basically what we want.

Adding this here now requires implementers to satisfy this method when, in the context of anchor channels, WalletSource is only intended to be used such that we perform coin selection on behalf of the user. Ideally, we also give users the option between choosing WalletSource/CoinSelectionSource when funding channels.

Hmm... I see. Would a separate trait be desirable? Also, see my reply to @TheBlueMatt below.

Right, I guess I'm a bit confused why we can't use select_confirmed_utxos as-is? Indeed the claim_id is annoying, but we can make that either an enum across a ClaimId and some unit value describing a splice or just make it an Option. Aside from that it seems to be basically what we want.

The return value also isn't compatible. It contains Utxos but we also need the previous tx and sequence number as part of each FundingTxInput. Though its constructor will give a default sequence number.

We could change CoinSelection to use FundingTxInput instead of Utxo, but that would be odd for use with the anchor context.

Honestly that seems fine to me? We expect ~all of our users to want to use splicing, which implies they need to support the "return coin selection with full transactions" interface. So what if anchors throw away some of that data?

If we feel strongly about it we can add a new trait method that does return the full transactions and provide a default implementation for the current method so that those that really want to avoid always fetching the transaction data can.

Right, I don't have a strong opinion, but note that Wallet's implementation of CoinSelectionSource::select_confirmed_utxos delegates to WalletSource::list_confirmed_utxos. So it might be expensive to use that abstraction. @wpaulino WDYT?

I was thinking of keeping CoinSelectionSource the same (with the full transaction data in the response, or with the default-impl-method described above) but changing WalletSource so that we don't have to fetch all previous-transactions at the start.

Yeah, Wallet wraps a WalletSource and implements CoinSelectionSource by listing all the UTXOs and selecting from them. So WalletSource's interface would remain unchanged while CoinSelection would use FundingTxInput instead of Utxo. Which I guess means FundingTemplate::build should actually take a CoinSelectionSource.

Seems reasonable to require a sequence number in the response for that as well, even for anchors?

Hmm... in WalletSource::list_confirmed_utxos by adding a field to Utxto (and removing it from FundingTxInput)? Or by having the CoinSelectionSource implementation fill it in on FundingTxInput?

So WalletSource's interface would remain unchanged

Wouldn't we need a WalletSource::get_previous_transaction_for_utxo method to fetch the full tx data for the UTXOs we selected?

Hmm... in WalletSource::list_confirmed_utxos by adding a field to Utxto (and removing it from FundingTxInput)? Or by having the CoinSelectionSource implementation fill it in on FundingTxInput?

ISTM we should replace Utxo with FundingTxInput since FundingTxInput has strictly more fields (it contains a Utxo!) and we'd move to returning FundingTxInput from the trait.

Wouldn't we need a WalletSource::get_previous_transaction_for_utxo method to fetch the full tx data for the UTXOs we selected?

Right, we need another method for that.

ISTM we should replace Utxo with FundingTxInput since FundingTxInput has strictly more fields (it contains a Utxo!) and we'd move to returning FundingTxInput from the trait.

The question is more what should be setting Sequence? Either:

(1) Move it to Utxo and have WalletSource::list_confirmed_utxos set it since it returns Vec<Utxo>.
(2) Have CoinSelectionSource::select_confirmed_utxos set it since CoinSelection would now contain Vec<FundingTxInput>

We just can't replace Utxo with FundingTxInput in WalletSource::list_confirmed_utxos since we don't want to return the previous tx there.

(1) Move it to Utxo and have WalletSource::list_confirmed_utxos set it since it returns Vec.

Presumably this. No reason to want it to not be possible in WalletSource.

Done as discussed here and offline. I'm in the middle of updating the tests, but I've pushed an update for now.

TheBlueMatt

Aside from the above which-interface question I think the API is good.

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A forthcoming commit will change CoinSelection to include FundingTxInput instead of Utxo, though the former will probably be renamed. This is so CoinSelectionSource can be used when funding a splice. Further updating WalletSource to use FundingTxInput is not desirable, however, as it would result in looking up each confirmed UTXOs previous transaction even if it is not selected. See Wallet's implementation of CoinSelectionSource, which delegates to WalletSource for listing all confirmed UTXOs. This commit moves FundingTxInput::sequence to Utxo, and thus the responsibility for setting it to WalletSource implementations. Doing so will allow Wallet's CoinSelectionSource implementation to delegate looking up previous transactions to WalletSource without having to explicitly set the sequence on any FundingTxInput.

In order to reuse CoinSelectionSource for splicing, the previous transaction of each UTXO is needed. Update CoinSelection to use FundingTxInput (renamed to ConfirmedUtxo) so that it is available. This requires adding a method to WalletSource to look up a previous transaction for a UTXO. Otherwise, Wallet's implementation of CoinSelectionSource would need WalletSource to include the previous transactions when listing confirmed UTXOs to select from. But this would be inefficient since only some UTXOs are selected.

jkczyz · 2026-01-20T19:20:35Z

lightning/src/ln/funding.rs

+			// FIXME: Should claim_id be an Option?
+			let claim_id = ClaimId([0; 32]);


Regarding the CoinSelectionSource API, do we want to make claim_id an Option?

jkczyz · 2026-01-20T19:24:28Z

lightning/src/ln/splicing_tests.rs

-		Amount::from_sat(383)
+		Amount::from_sat(385)
 	} else {
-		Amount::from_sat(384)
+		Amount::from_sat(386)


Seems select_confirmed_utxos_internal might be off on the change calculation because it's using the weight of the change output to compute additional fees instead of re-computing the total fees using the total weight when including a change output.

ldk-reviews-bot · 2026-01-21T00:30:25Z

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Rather than requiring the user to pass FundingTxInputs when initiating a splice, generate a FundingNeeded event once the channel has become quiescent. This simplifies error handling and UTXO / change address clean-up by consolidating it in SpliceFailed event handling. Later, this event will be used for opportunistic contributions (i.e., when the counterparty wins quiescence or initiates), dual-funding, and RBF.

Now that CoinSelection is used to fund a splice funding transaction, use that for determining of a change output should be used. Previously, the initiator could either provide a change script upfront or let LDK generate one using SignerProvider::get_destination_script. Since older versions may have serialized a SpliceInstruction without a change script while waiting on quiescence, LDK must still generate a change output in this case.

codecov · 2026-01-21T19:58:51Z

Codecov Report

❌ Patch coverage is 76.35830% with 161 lines in your changes missing coverage. Please review.
✅ Project coverage is 86.39%. Comparing base (8eb9e70) to head (fcccbac).
⚠️ Report is 15 commits behind head on main.

Files with missing lines	Patch %	Lines
lightning/src/ln/channel.rs	59.23%	61 Missing and 3 partials ⚠️
lightning/src/ln/splicing_tests.rs	0.00%	33 Missing ⚠️
lightning/src/ln/funding.rs	89.74%	17 Missing and 15 partials ⚠️
lightning/src/ln/channelmanager.rs	71.60%	23 Missing ⚠️
lightning/src/events/bump_transaction/mod.rs	90.47%	3 Missing and 1 partial ⚠️
lightning/src/ln/functional_test_utils.rs	40.00%	3 Missing ⚠️
lightning/src/events/mod.rs	87.50%	0 Missing and 2 partials ⚠️

Additional details and impacted files

@@            Coverage Diff             @@
##             main    #4290      +/-   ##
==========================================
- Coverage   86.61%   86.39%   -0.23%     
==========================================
  Files         158      158              
  Lines      103067   103469     +402     
  Branches   103067   103469     +402     
==========================================
+ Hits        89275    89394     +119     
- Misses      11366    11654     +288     
+ Partials     2426     2421       -5

Flag	Coverage Δ
fuzzing	`37.02% <42.32%> (-0.05%)`	⬇️
tests	`85.70% <80.09%> (-0.21%)`	⬇️

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TheBlueMatt

API looks good. some misc comments i noted while skimming it

TheBlueMatt · 2026-01-21T22:21:34Z

lightning/src/events/bump_transaction/mod.rs

 }

+/// An unspent transaction output with at least one confirmation.
+pub type ConfirmedUtxo = FundingTxInput;


lets not rename types with aliases. If we are making a type more general lets rename the type itself.

Yeah, though it seems like neither funding nor bump_transaction are suitable places for this or the CoinSelection / Wallet related traits and types now. Should we move these into a separate module under util or elsewhere?

TheBlueMatt · 2026-01-21T22:30:23Z

lightning/src/events/mod.rs

+	/// Indicates that funding is needed for a channel splice or a dual-funded channel open.
+	///
+	/// The client should build a [`FundingContribution`] from the provided [`FundingTemplate`] and
+	/// pass it to [`ChannelManager::funding_contributed`].


Needs a call-out to what to do if you actually don't want to splice anymore (ie on failure)

Also maybe a note that the channel is hung waiting on our response, so we need to respond quickly.

Should they simply not handle the event? We'll be in quiescence and timeout after DISCONNECT_PEER_AWAITING_RESPONSE_TICKS. Though it seems this now inadvertently (but maybe expectedly) now applies to us sending splice_init. So maybe some renaming is in order?

Or should we expose ChannelManager::exit_quiescence?

TheBlueMatt · 2026-01-21T22:39:22Z

lightning/src/ln/funding.rs

+			// FIXME: Should claim_id be an Option?
+			let claim_id = ClaimId([0; 32]);


TheBlueMatt · 2026-01-21T22:40:28Z

lightning/src/ln/funding.rs

+
+	/// Creates a `FundingContribution` from the template by using `wallet` to perform coin
+	/// selection with the given fee rate.
+	pub fn build_sync<W: Deref>(


Can we also have a method for building with a provided set of inputs rather than going through the trait?

We could... or probably a CoinSelection so that a change output can be given.

TheBlueMatt · 2026-01-21T22:41:10Z

test_cases/chanmon_consistency/any_filename_works

spurious diff?

TheBlueMatt · 2026-01-21T22:47:47Z

lightning/src/ln/channel.rs

+		if self.context.channel_state.is_quiescent() {
+			return Err(APIError::APIMisuseError {
+				err: format!(
+					"Channel {} cannot be spliced as it is already quiescent",


Don't we want to support queuing up the splice to do afterwards?

Hmmm... this was to handle the time after we've generated FundingNeeded when we no longer have a quiescent_action but are still quiescent waiting on the user to call funding_contributed. But then we can't differentiate this from counterparty-initiated quiescence. Maybe we need to make a placeholder QuiescentAction for when we are waiting on the user to respond? Something like AwaitingFundingContribution, which could also be checked when funding_contributed is called.

Regarding error handling, since the FundingContribution is taken by value we need to generate a SpliceFailed event to allow the user to unlock the UTXOs. However, some failure may be result of misuse (e.g., wrong channel / counterparty, unexpected funding) or bad timing (e.g., peer already disconnected timing out quiescence).

In those cases, it doesn't make sense to generate SpliceFailed. Maybe we need to use DiscardFunding for some of these cases? We'd need another FundingInfo variant, though.

Otherwise, we'd need to return the UTXOs back to the caller, which we wanted to avoid.

Thoughts?

TheBlueMatt · 2026-01-21T22:50:38Z

lightning/src/ln/channel.rs

+	) -> Result<msgs::SpliceInit, SpliceFundingFailed>
+	where
+		L::Target: Logger,
+	{


presumably we need to check that we're quiescent and its our turn to talk?

TheBlueMatt · 2026-01-21T22:53:51Z

lightning/src/ln/channel.rs

 impl_writeable_tlv_based_enum_upgradable!(QuiescentAction,
 	(0, DoNothing) => {},
-	{1, Splice} => (),
+	{1, LegacySplice} => (),


Needs docs on when we switched so we know when to remove it

jkczyz · 2026-01-22T01:29:24Z

Given that the new API is to be reused for RBF, I wrote up a proposal to consider with this PR. @TheBlueMatt @wpaulino Looking for feedback / alternative ideas before continuing that work.

Observations

DiscardFunding contains the funding outpoint. So I assume users will need to look up the transaction to unlock any UTXOs and reclaim script pubkeys?
For RBF, I see we have FundingScope::funding_transaction, which is an Option. I thought we wanted to clear this, but I don't see where we are doing that.
Either of those require the user to know which outputs are their own and isn't change in order to recreate the SpliceContribution.
We produce a FundingTemplate from a SpliceContribution. The user may add more value / outputs before constructing a FundingContribution.
When implementing the acceptor case, there will not be a SpliceContribution -- just an empty FundingTemplate to be modified if needed before producing a FundingContribution. Similarly for dual funding.
FundingContribution can't differentiate user selected UTXOs from change.

Proposal

Store change output separately in FundingContribution instead of losing the information to outputs.
Store the shared input in FundingContribution to allow recreating the FundingTemplate
Recreate the FundingTemplate internally from the FundingContribution (before it is consumed into a FundingNegotiationContext) and keep track of it until it can be included alongside the negotiated FundingScopes
Alternatively, re-create FundingTemplate somehow from the InteractiveTxConstructor / InteractiveTxSigningSession data. Note, however, that which output, if any, is change will have been already lost.
Expose these FundingTemplates in ChannelDetails for informational purposes.
User initiated RBF doesn't require passing a SpliceContribution.
Instead another FundingNeeded event is generated -- once the channel is quiescent -- containing the last used FundingTemplate
User uses any of the previously used FundingTemplates or the one given in the event (modifying as they see fit) to call ChannelManager::funding_contributed.

Questions

How should we expose the FeeRate used in each negotiation? We need to make sure the RBF uses a greater fee rate, so at very least we need to keep track of it. User also needs to know to pass a higher fee rate when creating the new FundingContribution.
Do we need to also expose the inputs used in each negotiation? They aren't needed for RBF, so would only be informational.

TheBlueMatt · 2026-01-22T14:28:41Z

DiscardFunding contains the funding outpoint. So I assume users will need to look up the transaction to unlock any UTXOs and reclaim script pubkeys?

Hmm? It has a full-transaction field, I assume that should be used in splicing?

For RBF, I see we have FundingScope::funding_transaction, which is an Option. I thought we wanted to clear this, but I don't see where we are doing that.

Not sure what this is referring to maybe that was something you and @wpaulino discussed?

As for the proposal. Indeed, I agree we definitely want to retain change info so that devs have it handy.

Expose these FundingTemplates in ChannelDetails for informational purposes.

I'm confused why we want to expose the templates that don't have the full list of inputs, vs exposing the FundingContribution which is basically strictly more info?

User initiated RBF doesn't require passing a SpliceContribution.

Don't we use this to send the peer the intended-to-be-added amount in the splice_init? I'm kinda unclear on why that's there anyway tbh, can we just always set it to zero and remove value_added from SpliceContribution (I mean not that we should, its kinda nice for the user to be able to pass that info but still).

IIUC that the point of the value is really so that the dev can declare their intended changes to the channel up-front and get them back when we're asking them to fund the transaction. That way they're not storing them and always going to fetch them. If that's the case, shouldn't we try for something similar here? Have some way to specify the fee you intend to use (maybe in SpliceContribution for a fresh splice as well as well?) as well as any additional outputs or maybe even removed outputs?

Instead another FundingNeeded event is generated -- once the channel is quiescent -- containing the last used FundingTemplate

Again shouldn't this be a FundingContribution?

jkczyz · 2026-01-22T15:20:07Z

Hmm? It has a full-transaction field, I assume that should be used in splicing?

AFAICT, we don't have the Transaction in the ChannelMonitor, so we use FundingInfo::OutPoint in DiscardFunding.

Not sure what this is referring to maybe that was something you and @wpaulino discussed?

As for the proposal. Indeed, I agree we definitely want to retain change info so that devs have it handy.

I have a vague recollection that we didn't want to keep around the funding transaction in the FundingScope once it has enough confirmations. Maybe I'm misremembering?

Expose these FundingTemplates in ChannelDetails for informational purposes.

I'm confused why we want to expose the templates that don't have the full list of inputs, vs exposing the FundingContribution which is basically strictly more info?

Partly because we don't need the FundingTxInputs as the user will need to re-run coin selection. It's possible the same UTXOs could be used after bumping the fee rate and adjusting the change. But it may not be enough to cover mining fees.

Also, storing FundingTxInputs is more expensive because it contains prevtx, which may also be duplicated if inputs come from the same transaction. That said, while we would persist these as part of PendingFunding, they would at least be ephemeral.

User initiated RBF doesn't require passing a SpliceContribution.

Don't we use this to send the peer the intended-to-be-added amount in the splice_init? I'm kinda unclear on why that's there anyway tbh, can we just always set it to zero and remove value_added from SpliceContribution (I mean not that we should, its kinda nice for the user to be able to pass that info but still).

We don't send splice_init (or in this case tx_init_rbf) until we've become quiescent. It's not until we have become quiescent do we generate a FundingNeeded event. Having the amount and outputs in FundingTemplate is purely so the user can call splice_channel and not need to remember why they called it when handling FundingNeeded. It's not until that event is handled do we send any messages to the counterparty.

IIUC that the point of the value is really so that the dev can declare their intended changes to the channel up-front and get them back when we're asking them to fund the transaction. That way they're not storing them and always going to fetch them. If that's the case, shouldn't we try for something similar here? Have some way to specify the fee you intend to use (maybe in SpliceContribution for a fresh splice as well as well?) as well as any additional outputs or maybe even removed outputs?

Right, for RBF, the question is what should the user provide upfront vs when handling FundedNeeded? Do we expect them to want to increase / decrease the amount or add / remove inputs then? Or is it fine for them to do it when handling FundedNeeded. This PR doesn't current allow the the later but it can be trivially added by exposing an API on FundingTemplate. This is because when generating the event we are quiescent but haven't yet sent splice_init / tx_init_rbf.

For the fee rate, it is not supplied until handling FundedNeeded in this PR. We could have the user give it upfront. I think we at least need to know what fee rate was used during coin selection. Whether it passed at that time by the user or taken from the FundingTemplate probably doesn't matter.

Again shouldn't this be a FundingContribution?

Not in FundingNeeded since the user may need to re-run coin selection. Using FundingTemplate allows them to do this and adjust the amount and outputs.

I think I'm fine with storing the FundingContributions if that is what we want to expose to the user. But we should have a conversion back to FundingTemplate so that the funding flow is the same. We can't really adjust a FundingContribution for them without re-running coin selection.

jkczyz added this to Weekly Goals Dec 18, 2025

jkczyz self-assigned this Dec 18, 2025

jkczyz force-pushed the 2025-12-new-splice-api branch from f5933e5 to 854e9ca Compare January 12, 2026 17:47

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jkczyz mentioned this pull request Jan 16, 2026

Mixed mode splicing #4261

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jkczyz added 3 commits January 20, 2026 13:16

FIXME: Why does handle_channel_close override the witness?

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f - fix chanmon_consistency

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		// FIXME: Should claim_id be an Option?
		let claim_id = ClaimId([0; 32]);

Add FundingNeeded event for splicing #4290

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Add FundingNeeded event for splicing #4290

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Add `FundingNeeded` event for splicing #4290

Add `FundingNeeded` event for splicing #4290

jkczyz commented Dec 18, 2025 •

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ldk-reviews-bot commented Dec 18, 2025 •

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jkczyz commented Jan 12, 2026 •

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codecov bot commented Jan 21, 2026 •

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jkczyz commented Jan 22, 2026 •

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