Lightning Wallet

Give your AI agent a Bitcoin wallet. MCP server + CLI. Works with Claude Code, OpenClaw, Cursor, and any agent framework.

Note: This package was previously published as lightning-faucet-mcp. The functionality is identical.

What's New in v1.1

v1.1.0 - X402 protocol support (USDC on Base) as automatic fallback alongside L402 (Lightning).

• X402 Support - Automatic USDC payments on Base when L402 isn't available
• Protocol Auto-Detection - pay_l402_api seamlessly handles both L402 and X402
• Webhooks - Real-time notifications for payments and events
• Keysend - Send payments without invoices using node pubkeys
• Invoice Decoding - Decode BOLT11 invoices before paying
• Agent Analytics - Track spending patterns and usage
• Transaction Export - Export history in JSON or CSV format
• Budget Management - Get detailed budget status and set limits
• Agent Lifecycle - Deactivate, reactivate, and delete agents
• Account Recovery - Recover accounts and rotate API keys
• Agent-to-Agent Transfers - Move funds between your agents

Why Lightning Wallet MCP?

• Instant Payments - Lightning Network transactions settle in milliseconds
• L402 + X402 Protocol Support - Access any paid API automatically (Lightning or USDC)
• Operator/Agent Hierarchy - Manage multiple agents with spending limits
• No Custody Risk - Each agent has isolated funds with operator oversight
• Production Ready - Battle-tested infrastructure powering real transactions
• Webhook Notifications - Get notified instantly when payments arrive
• Full Observability - Analytics, exports, and detailed status tracking

Two Ways to Use

CLI (Any Agent Framework)

For CLI-first agents (OpenClaw, Pi, KiloCode, or any agent with Bash access):

npm install -g lightning-wallet-mcp

This installs the lw command:

# Register and save your API key
export LIGHTNING_WALLET_API_KEY=$(lw register --name "My Bot" | jq -r '.api_key')

# Check balance
lw balance | jq '.balance_sats'

# Pay an L402 API
lw pay-api "https://lightningfaucet.com/api/l402/fortune"

# Create and fund an agent
lw create-agent "Research Bot" --budget 5000
lw fund-agent 1 1000

# Check identity
lw whoami

Output is JSON by default (pipe to jq). Use --human for readable output.

Run lw help for all commands.

MCP Server (Claude Code, Cursor, Windsurf)

For MCP-native clients, configure as an MCP server:

Option A: Self-Registration

{
  "mcpServers": {
    "lightning-wallet": {
      "command": "npx",
      "args": ["lightning-wallet-mcp"]
    }
  }
}

Then ask Claude: "Register a new Lightning Wallet operator account"

Option B: Pre-configured API Key

1. Get an API key at lightningfaucet.com/ai-agents
2. Configure Claude Code (~/.claude/settings.json):

{
  "mcpServers": {
    "lightning-wallet": {
      "command": "npx",
      "args": ["lightning-wallet-mcp"],
      "env": {
        "LIGHTNING_WALLET_API_KEY": "your-api-key-here"
      }
    }
  }
}

Tools Reference

Service Info

Tool	Description
get_info	Get service status, version, and supported features
decode_invoice	Decode a BOLT11 invoice to see amount, destination, and expiry

Context & Identity

Tool	Description
whoami	Get current context - shows if operating as operator or agent
check_balance	Check current Lightning balance in satoshis
get_rate_limits	Check current rate limit status and requests remaining

Payments (Agent Key Required)

Tool	Description
pay_l402_api	Access paid APIs (L402/X402) - auto-detects protocol and pays
pay_invoice	Pay any BOLT11 Lightning invoice
keysend	Send payment directly to a node pubkey (no invoice needed)
pay_lightning_address	Pay to a Lightning address (user@domain.com format)
create_invoice	Generate invoice to receive payments
get_invoice_status	Check if an invoice has been paid
get_transactions	View transaction history

LNURL (Agent Key Required)

Tool	Description
lnurl_auth	Authenticate to a service using LNURL-auth protocol
claim_lnurl_withdraw	Claim funds from an LNURL-withdraw link

Operator Management

Tool	Description
register_operator	Create new operator account
recover_account	Recover account using recovery code
rotate_api_key	Generate a new API key (60-min cooldown on withdrawals)
get_deposit_invoice	Create invoice to fund operator account
withdraw	Withdraw funds to external Lightning destination
set_operator_key	Switch to operator credentials

Agent Management

Tool	Description
create_agent	Create agent under operator
list_agents	List all agents under operator
fund_agent	Transfer sats from operator to agent
transfer_to_agent	Transfer sats between agents or from operator to agent
sweep_agent	Sweep funds from agent back to operator
deactivate_agent	Temporarily disable an agent
reactivate_agent	Re-enable a deactivated agent
delete_agent	Permanently delete an agent (returns balance to operator)
get_budget_status	Get agent's budget limit and spending
set_budget	Set or update agent's spending limit
set_agent_credentials	Switch to agent credentials

Webhooks

Tool	Description
register_webhook	Register a URL to receive event notifications
list_webhooks	List all registered webhooks
delete_webhook	Delete a webhook
test_webhook	Send a test event to verify webhook connectivity

Webhook Events:

• invoice_paid - Payment received on an invoice
• payment_completed - Outgoing payment succeeded
• payment_failed - Outgoing payment failed
• balance_low - Balance dropped below threshold
• budget_warning - 80% of budget consumed
• test - Manual test event

CLI Reference

All commands output JSON to stdout. Errors go to stderr with exit code 1.

Command	Description
lw register [--name "name"]	Create operator account, prints API key
lw whoami	Current identity (operator or agent)
lw balance	Balance in satoshis
lw info	Service status and capabilities
lw deposit <amount>	Generate deposit invoice
lw withdraw <invoice>	Withdraw to external wallet
lw pay <invoice>	Pay BOLT11 invoice [--max-fee <sats>]
lw pay-api <url>	Pay L402/X402 API [--method GET] [--body "{}"] [--max-sats 1000]
lw decode <invoice>	Decode BOLT11 invoice
lw create-agent <name>	Create agent [--budget <sats>]
lw fund-agent <id> <amount>	Transfer sats to agent
lw list-agents	List all agents
lw transactions	Recent transactions [--limit 10] [--offset 0]
lw help	Show all commands

Agent Workflow Example (Bash)

# 1. Register (one-time)
export LIGHTNING_WALLET_API_KEY=$(lw register --name "My Agent" | jq -r '.api_key')

# 2. Fund the account (pay the invoice with any Lightning wallet)
lw deposit 10000 | jq -r '.bolt11'

# 3. Create an agent with a budget
AGENT=$(lw create-agent "Worker" --budget 5000)
AGENT_ID=$(echo $AGENT | jq -r '.agent_id')
AGENT_KEY=$(echo $AGENT | jq -r '.agent_api_key')

# 4. Fund the agent
lw fund-agent $AGENT_ID 2000

# 5. Switch to agent context and make payments
export LIGHTNING_WALLET_API_KEY=$AGENT_KEY
lw pay-api "https://api.example.com/data" --max-sats 100

# 6. Check what happened
lw transactions --limit 5

Paid API Protocols: L402 + X402

Lightning Wallet MCP supports two HTTP 402 payment protocols:

• L402 (primary) - Lightning Network payments. The original pay-per-request protocol.
• X402 (fallback) - USDC on Base (Coinbase's protocol). Auto-detected when L402 isn't available.

When you call pay_l402_api, the server automatically detects which protocol the API uses. L402 always takes priority if both headers are present. Agents always pay in sats regardless of protocol — X402 amounts are converted at market rate.

L402 Protocol

The L402 protocol (formerly LSAT) enables APIs to charge per-request using Lightning. When you call an L402-protected endpoint:

1. Server returns HTTP 402 with a Lightning invoice
2. Lightning Faucet pays the invoice automatically
3. Request completes with the paid content

X402 Protocol (Coinbase)

X402 uses USDC on Base for API payments. The flow is transparent to agents:

1. Server returns HTTP 402 with PAYMENT-REQUIRED header
2. Lightning Faucet converts USDC amount to sats, debits agent balance
3. Signs an EIP-712 authorization and retries with PAYMENT-SIGNATURE header
4. Request completes — agent sees the same response format as L402

The response includes payment_protocol: "x402" and usdc_amount so agents know which protocol was used.

L402 API Registry

We maintain a directory of L402-enabled APIs at lightningfaucet.com/l402-registry - perfect for testing your agents.

Demo L402 APIs

Try these endpoints to test L402 payments:

# Get a fortune (costs ~10-50 sats)
pay_l402_api({ url: "https://lightningfaucet.com/api/l402/fortune" })

# Get a joke (costs ~10-50 sats)
pay_l402_api({ url: "https://lightningfaucet.com/api/l402/joke" })

# Get an inspirational quote (costs ~10-50 sats)
pay_l402_api({ url: "https://lightningfaucet.com/api/l402/quote" })

See the L402 API Registry for more endpoints and resources.

Complete Workflow Example

// 1. Register as operator (if no API key configured)
register_operator({ name: "My AI Company" })
// Returns: { api_key: "lf_abc...", recovery_code: "xyz...", operator_id: 123 }

// 2. Activate the operator key
set_operator_key({ api_key: "lf_abc..." })

// 3. Check who you are
whoami()
// Returns: { type: "operator", id: 123, name: "My AI Company", balance_sats: 0 }

// 4. Fund your operator account
get_deposit_invoice({ amount_sats: 10000 })
// Pay this invoice with any Lightning wallet

// 5. Create an agent with budget limit
create_agent({ name: "Research Assistant", budget_limit_sats: 5000 })
// Returns: { agent_id: 456, agent_api_key: "agent_def..." }

// 6. Fund the agent
fund_agent({ agent_id: 456, amount_sats: 1000 })

// 7. Set up a webhook for payment notifications
register_webhook({
  url: "https://your-server.com/webhooks/lightning",
  events: ["invoice_paid", "payment_completed"]
})
// Returns: { webhook_id: 1, secret: "..." }  <- Save this secret!

// 8. Switch to agent mode for payments
set_agent_credentials({ api_key: "agent_def..." })

// 9. Check budget status
get_budget_status()
// Returns: { budget_limit_sats: 5000, total_spent_sats: 0, remaining_sats: 5000 }

// 10. Make payments!
pay_l402_api({ url: "https://api.example.com/premium-data" })

Keysend Payments

Send payments directly to a Lightning node without needing an invoice:

// Send 100 sats to a node with an optional message
keysend({
  destination: "03864ef025fde8fb587d989186ce6a4a186895ee44a926bfc370e2c366597a3f8f",
  amount_sats: 100,
  message: "Hello from my AI agent!"
})

Invoice Decoding

Check invoice details before paying:

decode_invoice({ invoice: "lnbc1000n1..." })
// Returns: {
//   amount_sats: 1000,
//   description: "Test payment",
//   destination: "03abc...",
//   expires_at: "2026-01-16T12:00:00Z",
//   is_expired: false
// }

Tool Details

get_info

Get service status and capabilities.

{
  "success": true,
  "version": "1.0.1",
  "api_version": "1.0",
  "status": "operational",
  "max_payment_sats": 1000000,
  "min_payment_sats": 1,
  "supported_features": ["l402", "x402", "webhooks", "lightning_address", "keysend"]
}

whoami

Get current operating context.

Returns for Operator:

{
  "type": "operator",
  "id": 123,
  "name": "My Company",
  "balance_sats": 50000,
  "agent_count": 3
}

Returns for Agent:

{
  "type": "agent",
  "id": 456,
  "name": "Research Bot",
  "balance_sats": 1000,
  "budget_limit_sats": 5000,
  "operator_id": 123
}

pay_l402_api

Access paid APIs with automatic payment. Supports both L402 (Lightning) and X402 (USDC on Base) protocols. Protocol is auto-detected from the 402 response headers.

Parameter	Type	Required	Description
url	string	Yes	The URL to request
method	string	No	HTTP method (GET, POST, PUT, DELETE). Default: GET
body	string	No	Request body for POST/PUT
max_payment_sats	number	No	Maximum payment amount. Default: 1000

keysend

Send payment to a node without an invoice.

Parameter	Type	Required	Description
destination	string	Yes	Target node public key (66 hex chars)
amount_sats	number	Yes	Amount in satoshis
message	string	No	Optional message (max 1000 chars)

register_webhook

Register a URL to receive payment notifications.

Parameter	Type	Required	Description
url	string	Yes	HTTPS URL to receive webhooks
events	array	No	Event types to subscribe to. Default: ["invoice_paid"]

Returns: Webhook ID and HMAC secret for signature verification.

Architecture

┌─────────────────────────────────────────────────────────┐
│                    OPERATOR                              │
│  • Holds main funds                                      │
│  • Creates and manages agents                            │
│  • Sets spending limits                                  │
│  • Receives webhook notifications                        │
│  • Can recover account with recovery code                │
├─────────────────────────────────────────────────────────┤
│     AGENT 1          AGENT 2          AGENT 3           │
│   ┌─────────┐      ┌─────────┐      ┌─────────┐        │
│   │ 1000 sat│      │ 5000 sat│      │ 2500 sat│        │
│   │ Budget: │      │ Budget: │      │ Budget: │        │
│   │ 5000    │      │ 10000   │      │ Unlimited│        │
│   └─────────┘      └─────────┘      └─────────┘        │
│       │                │                │               │
│   L402 APIs        Keysend          Receive             │
│   Pay Invoice      Payments         Payments            │
└─────────────────────────────────────────────────────────┘

Security Best Practices

• Never commit API keys - Use environment variables
• Set budget limits - Protect against runaway spending
• Use agent keys for payments - Keep operator key secure
• Verify webhook signatures - Use the secret returned during registration
• Monitor transactions - Use get_transactions to review activity
• Recovery codes - Store securely, needed if API key is lost
• Key rotation - Rotate keys periodically using rotate_api_key

Webhook Security

Webhooks include HMAC-SHA256 signatures for verification:

import hmac
import hashlib

def verify_webhook(payload, signature, secret):
    expected = hmac.new(
        secret.encode(),
        payload.encode(),
        hashlib.sha256
    ).hexdigest()
    return hmac.compare_digest(signature, expected)

Check the X-Webhook-Signature header against the payload.

Pricing

Lightning Faucet charges a 2% platform fee (min 1 sat) on outgoing payments:

• L402 payments: 2% platform fee + Lightning routing fee
• X402 payments: 2% platform fee + 1% exchange rate spread (USDC to sats conversion)
• Invoice payments: 2% platform fee + Lightning routing fee
• Keysend payments: 2% platform fee + Lightning routing fee
• Operator withdrawals: 2% platform fee + Lightning routing fee
• Cross-operator internal transfers: 2% platform fee (no routing fee)
• Same-operator agent transfers: Free
• Deposits: Free
• Receiving payments: Free
• Webhooks: Free

All payment responses include platform_fee_sats, routing_fee_sats, and total_cost for full transparency.

Changelog

v1.1.0 (2026-02-16)

• CLI interface: New lw command for CLI-first agents (OpenClaw, Pi, KiloCode, any Bash agent)
• Same package, two interfaces: npm install -g lightning-wallet-mcp gives you both MCP server and CLI
• JSON-first output: All CLI commands output JSON to stdout, errors to stderr
• X402 support: Automatic fallback to X402 (USDC on Base) when L402 is not available
• Protocol auto-detection: pay_l402_api detects L402 or X402 from 402 response headers
• Response fields: payment_protocol and usdc_amount included when X402 is used
• Exchange rate: Real-time BTC/USD conversion via CoinGecko with 5-min cache

v1.0.3 (2026-02-05)

• Platform fee: 2% fee (min 1 sat) on all outgoing payments and cross-operator transfers
• Fee transparency: All payment responses now include platform_fee_sats, routing_fee_sats, and total_cost
• Same-operator agent transfers remain free

v1.0.0 (2026-02-04)

• Rebranded from lightning-faucet-mcp to lightning-wallet-mcp
• Environment variable renamed: LIGHTNING_FAUCET_API_KEY → LIGHTNING_WALLET_API_KEY
• All 37 tools fully tested and production-ready
• No breaking API changes - just the package name

Previous releases (as lightning-faucet-mcp)

See the lightning-faucet-mcp changelog for v1.6.0 through v2.0.7 history.

• Basic payments and invoices

Showcase: AI Agent Game Theory Experiment

We ran a 100-round economic experiment with 16 AI agents (8 Claude, 8 GPT-4o) using real Bitcoin on Lightning. Agents could trade, form alliances, invest, and compete — all powered by this MCP server.

Results: Agents completed 2,839 real Lightning transactions. Claude agents dominated through aggressive early trading while GPT-4o agents adopted conservative strategies.

• Experiment repo: github.com/pfergi42/lf-game-theory
• Blog post: lightningfaucet.com/blog/ai-game-theory

Support

• Documentation: lightningfaucet.com/ai-agents/docs
• Demo: lightningfaucet.com/ai-agents/demo
• Issues: github.com/lightningfaucet/lightning-wallet-mcp/issues
• Email: support@lightningfaucet.com

License

MIT License - see LICENSE for details.

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