Implement CPFP fee bumping for unconfirmed transactions

bindings/ldk_node.udl

@@ -231,6 +231,8 @@ interface OnchainPayment {
 	Txid send_to_address([ByRef]Address address, u64 amount_sats, FeeRate? fee_rate);
 	[Throws=NodeError]
 	Txid send_all_to_address([ByRef]Address address, boolean retain_reserve, FeeRate? fee_rate);
+	[Throws=NodeError]
+	Txid bump_fee_cpfp(PaymentId payment_id);
 };
 
 interface FeeRate {

src/payment/onchain.rs

@@ -14,6 +14,7 @@ use crate::types::{ChannelManager, Wallet};
 use crate::wallet::OnchainSendAmount;
 
 use bitcoin::{Address, Txid};
+use lightning::ln::channelmanager::PaymentId;
 
 use std::sync::{Arc, RwLock};
 
@@ -120,4 +121,31 @@ impl OnchainPayment {
 		let fee_rate_opt = maybe_map_fee_rate_opt!(fee_rate);
 		self.wallet.send_to_address(address, send_amount, fee_rate_opt)
 	}
+
+	/// Bumps the fee of a given UTXO using Child-Pays-For-Parent (CPFP) by creating a new transaction.
+	///
+	/// This method creates a new transaction that spends the specified UTXO with a higher fee rate,
+	/// effectively increasing the priority of both the new transaction and the parent transaction
+	/// it depends on. This is useful when a transaction is stuck in the mempool due to insufficient
+	/// fees and you want to accelerate its confirmation.
+	///
+	/// CPFP works by creating a child transaction that spends one or more outputs from the parent
+	/// transaction. Miners will consider the combined fees of both transactions when deciding
+	/// which transactions to include in a block.
+	///
+	/// # Parameters
+	/// * `payment_id` - The identifier of the payment whose UTXO should be fee-bumped
+	///
+	/// # Returns
+	/// * `Ok(Txid)` - The transaction ID of the newly created CPFP transaction on success
+	/// * `Err(Error)` - If the payment cannot be found, the UTXO is not suitable for CPFP,
+	///   or if there's an error creating the transaction
+	///
+	/// # Note
+	/// CPFP is specifically designed to work with unconfirmed UTXOs. The child transaction
+	/// can spend outputs from unconfirmed parent transactions, allowing miners to consider
+	/// the combined fees of both transactions when building a block.
+	pub fn bump_fee_cpfp(&self, payment_id: PaymentId) -> Result<Txid, Error> {
+		self.wallet.bump_fee_cpfp(payment_id)
+	}
 }

src/wallet/mod.rs

@@ -12,7 +12,7 @@ use crate::logger::{log_debug, log_error, log_info, log_trace, LdkLogger};
 
 use crate::fee_estimator::{ConfirmationTarget, FeeEstimator};
 use crate::payment::store::ConfirmationStatus;
-use crate::payment::{PaymentDetails, PaymentDirection, PaymentStatus};
+use crate::payment::{PaymentDetails, PaymentDirection, PaymentKind, PaymentStatus};
 use crate::types::PaymentStore;
 use crate::Error;
 
@@ -46,13 +46,14 @@ use bitcoin::secp256k1::ecdh::SharedSecret;
 use bitcoin::secp256k1::ecdsa::{RecoverableSignature, Signature};
 use bitcoin::secp256k1::{PublicKey, Scalar, Secp256k1, SecretKey, Signing};
 use bitcoin::{
-	Address, Amount, FeeRate, Network, ScriptBuf, Transaction, TxOut, Txid, WPubkeyHash,
+	Address, Amount, FeeRate, Network, OutPoint, ScriptBuf, Transaction, TxOut, Txid, WPubkeyHash,
 	WitnessProgram, WitnessVersion,
 };
 
 use std::ops::Deref;
 use std::str::FromStr;
 use std::sync::{Arc, Mutex};
+use std::time::{Duration, SystemTime, UNIX_EPOCH};
 
 pub(crate) enum OnchainSendAmount {
 	ExactRetainingReserve { amount_sats: u64, cur_anchor_reserve_sats: u64 },
@@ -568,6 +569,146 @@ where
 
 		Ok(txid)
 	}
+
+	pub(crate) fn bump_fee_cpfp(&self, payment_id: PaymentId) -> Result<Txid, Error> {
+		let txid = Txid::from_slice(&payment_id.0).expect("32 bytes");
+
+		let payment = self.payment_store.get(&payment_id).ok_or(Error::InvalidPaymentId)?;
+		if payment.direction != PaymentDirection::Inbound {
+			log_error!(self.logger, "Transaction {} is not an inbound payment", txid);
+			return Err(Error::InvalidPaymentId);
+		}
+
+		if let PaymentKind::Onchain { status, .. } = &payment.kind {
+			match status {
+				ConfirmationStatus::Confirmed { .. } => {
+					log_error!(self.logger, "Transaction {} is already confirmed", txid);
+					return Err(Error::InvalidPaymentId);
+				},
+				ConfirmationStatus::Unconfirmed => {},
+			}
+		}
+
+		let mut locked_wallet = self.inner.lock().unwrap();
+
+		let wallet_tx = locked_wallet.get_tx(txid).ok_or(Error::InvalidPaymentId)?;
+		let transaction = &wallet_tx.tx_node.tx;
+		let (sent, received) = locked_wallet.sent_and_received(transaction);
+
+		if sent > received {
+			log_error!(
+				self.logger,
+				"Transaction {} is not an inbound payment (sent: {}, received: {})",
+				txid,
+				sent,
+				received
+			);
+			return Err(Error::InvalidPaymentId);
+		}
+
+		// Create the CPFP transaction using a high fee rate to get it confirmed quickly.
+		let mut our_vout: Option<u32> = None;
+		let mut our_value: Amount = Amount::ZERO;
+
+		for (vout_index, output) in transaction.output.iter().enumerate() {
+			let script = output.script_pubkey.clone();
+
+			if locked_wallet.is_mine(script) {
+				our_vout = Some(vout_index as u32);
+				our_value = output.value.into();
+				break;
+			}
+		}
+
+		let our_vout = our_vout.ok_or_else(|| {
+			log_error!(
+				self.logger,
+				"Could not find an output owned by this wallet in transaction {}",
+				txid
+			);
+			Error::InvalidPaymentId
+		})?;
+
+		let cpfp_outpoint = OutPoint::new(txid, our_vout);
+
+		let confirmation_target = ConfirmationTarget::OnchainPayment;
+		let estimated_fee_rate = self.fee_estimator.estimate_fee_rate(confirmation_target);
+
+		const CPFP_MULTIPLIER: f64 = 1.5;
+		let boosted_fee_rate = FeeRate::from_sat_per_kwu(
+			((estimated_fee_rate.to_sat_per_kwu() as f64) * CPFP_MULTIPLIER) as u64,
+		);
+
+		let mut psbt = {
+			let mut tx_builder = locked_wallet.build_tx();
+			tx_builder
+				.add_utxo(cpfp_outpoint)
+				.map_err(|e| {
+					log_error!(self.logger, "Failed to add CPFP UTXO {}: {}", cpfp_outpoint, e);
+					Error::InvalidPaymentId
+				})?
+				.drain_to(transaction.output[our_vout as usize].script_pubkey.clone())
+				.fee_rate(boosted_fee_rate);
+
+			match tx_builder.finish() {
+				Ok(psbt) => {
+					log_trace!(self.logger, "Created CPFP PSBT: {:?}", psbt);
+					psbt
+				},
+				Err(err) => {
+					log_error!(self.logger, "Failed to create CPFP transaction: {}", err);
+					return Err(err.into());
+				},
+			}
+		};
+
+		match locked_wallet.sign(&mut psbt, SignOptions::default()) {
+			Ok(finalized) => {
+				if !finalized {
+					return Err(Error::OnchainTxCreationFailed);
+				}
+			},
+			Err(err) => {
+				log_error!(self.logger, "Failed to create transaction: {}", err);
+				return Err(err.into());
+			},
+		}
+
+		let mut locked_persister = self.persister.lock().unwrap();
+		locked_wallet.persist(&mut locked_persister).map_err(|e| {
+			log_error!(self.logger, "Failed to persist wallet: {}", e);
+			Error::PersistenceFailed
+		})?;
+
+		let cpfp_tx = psbt.extract_tx().map_err(|e| {
+			log_error!(self.logger, "Failed to extract CPFP transaction: {}", e);
+			e
+		})?;
+
+		let cpfp_txid = cpfp_tx.compute_txid();
+
+		self.broadcaster.broadcast_transactions(&[&cpfp_tx]);
+
+		let new_fee = locked_wallet.calculate_fee(&cpfp_tx).unwrap_or(Amount::ZERO);
+		let new_fee_sats = new_fee.to_sat();
+
+		let payment_details = PaymentDetails {
+			id: PaymentId(cpfp_txid.to_byte_array()),
+			kind: PaymentKind::Onchain { txid: cpfp_txid, status: ConfirmationStatus::Unconfirmed },
+			amount_msat: Some(our_value.to_sat() * 1000),
+			fee_paid_msat: Some(new_fee_sats * 1000),
+			direction: PaymentDirection::Outbound,
+			status: PaymentStatus::Pending,
+			latest_update_timestamp: SystemTime::now()
+				.duration_since(UNIX_EPOCH)
+				.unwrap_or(Duration::from_secs(0))
+				.as_secs(),
+		};
+		self.payment_store.insert_or_update(payment_details)?;
+
+		log_info!(self.logger, "Created CPFP transaction {} to bump fee of {}", cpfp_txid, txid);
+		Ok(cpfp_txid)
+	}
 }
 
 impl<B: Deref, E: Deref, L: Deref> Listen for Wallet<B, E, L>

tests/integration_tests_rust.rs

@@ -33,9 +33,9 @@ use lightning::util::persist::KVStore;
 use lightning_invoice::{Bolt11InvoiceDescription, Description};
 use lightning_types::payment::{PaymentHash, PaymentPreimage};
 
-use bitcoin::address::NetworkUnchecked;
 use bitcoin::hashes::sha256::Hash as Sha256Hash;
 use bitcoin::hashes::Hash;
+use bitcoin::{address::NetworkUnchecked, Txid};
 use bitcoin::{Address, Amount, ScriptBuf};
 use log::LevelFilter;
 
@@ -1699,3 +1699,105 @@ async fn drop_in_async_context() {
 	let node = setup_node(&chain_source, config, Some(seed_bytes));
 	node.stop().unwrap();
 }
+
+#[test]
+fn test_fee_bump_cpfp() {
+	let (bitcoind, electrsd) = setup_bitcoind_and_electrsd();
+	let chain_source = TestChainSource::Esplora(&electrsd);
+	let (node_a, node_b) = setup_two_nodes(&chain_source, false, true, false);
+
+	// Fund both nodes
+	let addr_a = node_a.onchain_payment().new_address().unwrap();
+	let addr_b = node_b.onchain_payment().new_address().unwrap();
+
+	let premine_amount_sat = 500_000;
+	premine_and_distribute_funds(
+		&bitcoind.client,
+		&electrsd.client,
+		vec![addr_a.clone(), addr_b.clone()],
+		Amount::from_sat(premine_amount_sat),
+	);
+
+	node_a.sync_wallets().unwrap();
+	node_b.sync_wallets().unwrap();
+
+	// Send a transaction from node_b to node_a that we'll later bump
+	let amount_to_send_sats = 100_000;
+	let txid =
+		node_b.onchain_payment().send_to_address(&addr_a, amount_to_send_sats, None).unwrap();
+	wait_for_tx(&electrsd.client, txid);
+	node_a.sync_wallets().unwrap();
+	node_b.sync_wallets().unwrap();
+
+	let payment_id = PaymentId(txid.to_byte_array());
+	let original_payment = node_b.payment(&payment_id).unwrap();
+	let original_fee = original_payment.fee_paid_msat.unwrap();
+
+	// Non-existent payment id
+	let fake_txid =
+		Txid::from_str("0000000000000000000000000000000000000000000000000000000000000000").unwrap();
+	let invalid_payment_id = PaymentId(fake_txid.to_byte_array());
+	assert_eq!(
+		Err(NodeError::InvalidPaymentId),
+		node_b.onchain_payment().bump_fee_cpfp(invalid_payment_id)
+	);
+
+	// Bump an outbound payment
+	assert_eq!(
+		Err(NodeError::InvalidPaymentId),
+		node_b.onchain_payment().bump_fee_cpfp(payment_id)
+	);
+
+	// Successful fee bump via CPFP
+	let new_txid = node_a.onchain_payment().bump_fee_cpfp(payment_id).unwrap();
+	wait_for_tx(&electrsd.client, new_txid);
+
+	// Sleep to allow for transaction propagation
+	std::thread::sleep(std::time::Duration::from_secs(5));
+
+	node_a.sync_wallets().unwrap();
+	node_b.sync_wallets().unwrap();
+
+	let new_payment_id = PaymentId(new_txid.to_byte_array());
+	let new_payment = node_a.payment(&new_payment_id).unwrap();
+
+	// Verify payment properties
+	assert_eq!(new_payment.amount_msat, Some(amount_to_send_sats * 1000));
+	assert_eq!(new_payment.direction, PaymentDirection::Outbound);
+	assert_eq!(new_payment.status, PaymentStatus::Pending);
+
+	// // Verify fee increased
+	assert!(
+		new_payment.fee_paid_msat > Some(original_fee),
+		"Fee should increase after RBF bump. Original: {}, New: {}",
+		original_fee,
+		new_payment.fee_paid_msat.unwrap()
+	);
+
+	// Confirm the transaction and try to bump again (should fail)
+	generate_blocks_and_wait(&bitcoind.client, &electrsd.client, 6);
+	node_a.sync_wallets().unwrap();
+	node_b.sync_wallets().unwrap();
+
+	assert_eq!(
+		Err(NodeError::InvalidPaymentId),
+		node_a.onchain_payment().bump_fee_cpfp(payment_id)
+	);
+
+	// Verify final payment is confirmed
+	let final_payment = node_b.payment(&payment_id).unwrap();
+	assert_eq!(final_payment.status, PaymentStatus::Succeeded);
+	match final_payment.kind {
+		PaymentKind::Onchain { status, .. } => {
+			assert!(matches!(status, ConfirmationStatus::Confirmed { .. }));
+		},
+		_ => panic!("Unexpected payment kind"),
+	}
+
+	// Verify node A received the funds correctly
+	let node_a_received_payment =
+		node_a.list_payments_with_filter(|p| matches!(p.kind, PaymentKind::Onchain { txid, .. }));
+	assert_eq!(node_a_received_payment.len(), 1);
+	assert_eq!(node_a_received_payment[0].amount_msat, Some(amount_to_send_sats * 1000));
+	assert_eq!(node_a_received_payment[0].status, PaymentStatus::Succeeded);
+}