feat: encrypt xpub for auto swap outs (#1973)

* feat: encrypt xpub for auto swap out

* fix: include encryptionKey in the cache key (sha256)

* fix: make cache 2 level nested map

* chore: comment

* fix: missing import

* fix: use ValidateXpub

* fix: cleanup

* fix: cleanup

* fix: better name

* fix: cleanup

* fix: cleanup

* fix: cleanup

* fix: open dialog to ask password on autoswap xpub

* fix: reject extended private keys

* fix: fix amount comp

* chore: improve autoswap destination handling and form submission flow

* fix: clear cached xpub when enabling autoswaps

* fix: autoswap destination validation and xpub handling

* chore: add mutex for auto swap xpub

* chore: add copy icon for destination in auto swap info

---------

Co-authored-by: fmar <fmar@fmar.dev>
Co-authored-by: anon <anon@anon.com>
Co-authored-by: im-adithya <imadithyavardhan@gmail.com>

api/api.go

@@ -810,10 +810,18 @@ func (api *api) RefundSwap(refundSwapRequest *RefundSwapRequest) error {
 }
 
 func (api *api) GetAutoSwapConfig() (*GetAutoSwapConfigResponse, error) {
+	if api.svc.GetSwapsService() == nil {
+		return nil, errors.New("SwapsService not started")
+	}
+
 	swapOutBalanceThresholdStr, _ := api.cfg.Get(config.AutoSwapBalanceThresholdKey, "")
 	swapOutAmountStr, _ := api.cfg.Get(config.AutoSwapAmountKey, "")
 	swapOutDestination, _ := api.cfg.Get(config.AutoSwapDestinationKey, "")
 
+	if xpub := api.svc.GetSwapsService().GetDecryptedAutoSwapXpub(); xpub != "" {
+		swapOutDestination = xpub
+	}
+
 	swapOutEnabled := swapOutBalanceThresholdStr != "" && swapOutAmountStr != ""
 	var swapOutBalanceThreshold, swapOutAmount uint64
 	if swapOutEnabled {
@@ -984,6 +992,30 @@ func (api *api) InitiateSwapIn(ctx context.Context, initiateSwapInRequest *Initi
 }
 
 func (api *api) EnableAutoSwapOut(ctx context.Context, enableAutoSwapsRequest *EnableAutoSwapRequest) error {
+	if api.svc.GetSwapsService() == nil {
+		return errors.New("SwapsService not started")
+	}
+
+	encryptionKey := ""
+	if enableAutoSwapsRequest.Destination != "" {
+		switch enableAutoSwapsRequest.DestinationType {
+		case "address":
+			if err := api.svc.GetSwapsService().ValidateAddress(enableAutoSwapsRequest.Destination); err != nil {
+				return err
+			}
+		case "xpub":
+			if !api.cfg.CheckUnlockPassword(enableAutoSwapsRequest.UnlockPassword) {
+				return errors.New("invalid unlock password")
+			}
+			if err := api.svc.GetSwapsService().ValidateXpub(enableAutoSwapsRequest.Destination); err != nil {
+				return err
+			}
+			encryptionKey = enableAutoSwapsRequest.UnlockPassword
+		default:
+			return errors.New("destination type must be address or xpub")
+		}
+	}
+
 	err := api.cfg.SetUpdate(config.AutoSwapBalanceThresholdKey, strconv.FormatUint(enableAutoSwapsRequest.BalanceThreshold, 10), "")
 	if err != nil {
 		logger.Logger.WithError(err).Error("Failed to save autoswap balance threshold to config")
@@ -996,16 +1028,13 @@ func (api *api) EnableAutoSwapOut(ctx context.Context, enableAutoSwapsRequest *E
 		return err
 	}
 
-	err = api.cfg.SetUpdate(config.AutoSwapDestinationKey, enableAutoSwapsRequest.Destination, "")
+	err = api.cfg.SetUpdate(config.AutoSwapDestinationKey, enableAutoSwapsRequest.Destination, encryptionKey)
 	if err != nil {
 		logger.Logger.WithError(err).Error("Failed to save autoswap destination to config")
 		return err
 	}
 
-	if api.svc.GetSwapsService() == nil {
-		return errors.New("SwapsService not started")
-	}
-	return api.svc.GetSwapsService().EnableAutoSwapOut()
+	return api.svc.GetSwapsService().EnableAutoSwapOut(enableAutoSwapsRequest.UnlockPassword)
 }
 
 func (api *api) DisableAutoSwap() error {

api/models.go

@@ -168,6 +168,8 @@ type EnableAutoSwapRequest struct {
 	BalanceThreshold uint64 `json:"balanceThreshold"`
 	SwapAmount       uint64 `json:"swapAmount"`
 	Destination      string `json:"destination"`
+	DestinationType  string `json:"destinationType"`
+	UnlockPassword   string `json:"unlockPassword"`
 }
 
 type GetAutoSwapConfigResponse struct {

frontend/src/screens/wallet/swap/AutoSwap.tsx

@@ -2,6 +2,7 @@ import {
   ArrowDownUpIcon,
   ClipboardPasteIcon,
   ClockIcon,
+  CopyIcon,
   MoveRightIcon,
   XCircleIcon,
 } from "lucide-react";
@@ -11,14 +12,24 @@ import AppHeader from "src/components/AppHeader";
 import ExternalLink from "src/components/ExternalLink";
 import { FormattedBitcoinAmount } from "src/components/FormattedBitcoinAmount";
 import Loading from "src/components/Loading";
+import PasswordInput from "src/components/password/PasswordInput";
 import ResponsiveLinkButton from "src/components/ResponsiveLinkButton";
+import {
+  AlertDialog,
+  AlertDialogCancel,
+  AlertDialogContent,
+  AlertDialogDescription,
+  AlertDialogFooter,
+  AlertDialogHeader,
+  AlertDialogTitle,
+} from "src/components/ui/alert-dialog";
 import { Button } from "src/components/ui/button";
 import { LoadingButton } from "src/components/ui/custom/loading-button";
 import { Input } from "src/components/ui/input";
 import { Label } from "src/components/ui/label";
 import { RadioGroup, RadioGroupItem } from "src/components/ui/radio-group";
-import { useBalances } from "src/hooks/useBalances";
 import { useAutoSwapsConfig, useSwapInfo } from "src/hooks/useSwaps";
+import { copyToClipboard } from "src/lib/clipboard";
 import { AutoSwapConfig } from "src/types";
 import { request } from "src/utils/request";
 
@@ -54,7 +65,6 @@ export default function AutoSwap() {
 }
 
 function AutoSwapOutForm() {
-  const { data: balances } = useBalances();
   const { mutate } = useAutoSwapsConfig();
   const { data: swapInfo } = useSwapInfo("out");
 
@@ -65,18 +75,35 @@ function AutoSwapOutForm() {
   const [externalType, setExternalType] = useState<"address" | "xpub">(
     "address"
   );
+  const [unlockPassword, setUnlockPassword] = useState("");
+  const [showUnlockPasswordDialog, setShowUnlockPasswordDialog] =
+    useState(false);
   const [loading, setLoading] = useState(false);
 
   const onSubmit = async (e: React.FormEvent) => {
     e.preventDefault();
 
-    if (swapAmount > balanceThreshold) {
+    if (Number(swapAmount) > Number(balanceThreshold)) {
       toast.info(
         "Balance threshold must be greater than or equal to swap amount"
       );
       return;
     }
 
+    if (externalType === "xpub" && !isInternalSwap) {
+      setShowUnlockPasswordDialog(true);
+      return;
+    }
+
+    await submitAutoSwap();
+  };
+
+  const onConfirmUnlockPassword = async (e: React.FormEvent) => {
+    e.preventDefault();
+    await submitAutoSwap(unlockPassword);
+  };
+
+  const submitAutoSwap = async (password?: string) => {
     try {
       setLoading(true);
       await request("/api/autoswap", {
@@ -88,8 +115,12 @@ function AutoSwapOutForm() {
           swapAmount: parseInt(swapAmount),
           balanceThreshold: parseInt(balanceThreshold),
           destination,
+          destinationType: !isInternalSwap ? externalType : undefined,
+          unlockPassword: password,
         }),
       });
+      setUnlockPassword("");
+      setShowUnlockPasswordDialog(false);
       toast("Auto swap enabled successfully");
       await mutate();
     } catch (error) {
@@ -106,198 +137,238 @@ function AutoSwapOutForm() {
     setDestination(text.trim());
   };
 
-  if (!balances || !swapInfo) {
+  if (!swapInfo) {
     return <Loading />;
   }
 
   return (
-    <form onSubmit={onSubmit} className="flex flex-col gap-6">
-      <div>
-        <h2 className="font-medium text-foreground flex items-center gap-1">
-          Lightning <MoveRightIcon /> On-chain
-        </h2>
-        <p className="mt-1 text-muted-foreground">
-          Setup automatic swap of lightning funds into your on-chain balance
-          every time a set threshold is reached.
-        </p>
-        <p className="mt-2 text-muted-foreground flex gap-2 items-center text-sm">
-          <ClockIcon className="w-4 h-4" />
-          Swaps will be made once per hour
-        </p>
-      </div>
-
-      <div className="grid gap-1.5">
-        <Label>Spending balance threshold</Label>
-        <Input
-          type="number"
-          placeholder="Amount in satoshis"
-          value={balanceThreshold}
-          min={swapAmount}
-          onChange={(e) => setBalanceThreshold(e.target.value)}
-          required
-        />
-        <p className="text-xs text-muted-foreground">
-          Swap out as soon as this amount is reached
-        </p>
-      </div>
-
-      <div className="grid gap-1.5">
-        <Label>Swap amount</Label>
-        <Input
-          type="number"
-          placeholder="Amount in satoshis"
-          value={swapAmount}
-          min={swapInfo.minAmount}
-          max={swapInfo.maxAmount}
-          onChange={(e) => setSwapAmount(e.target.value)}
-          required
-        />
-        <p className="text-xs text-muted-foreground">
-          Minimum <FormattedBitcoinAmount amount={swapInfo.minAmount * 1000} />
-        </p>
-      </div>
-      <div className="flex flex-col gap-4">
-        <Label>Swap to</Label>
-        <RadioGroup
-          defaultValue="normal"
-          value={isInternalSwap ? "internal" : "external"}
-          onValueChange={() => {
-            setDestination("");
-            setInternalSwap(!isInternalSwap);
-          }}
-          className="flex gap-4 flex-row"
-        >
-          <div className="flex items-start space-x-2 mb-2">
-            <RadioGroupItem
-              value="internal"
-              id="internal"
-              className="shrink-0"
-            />
-            <Label
-              htmlFor="internal"
-              className="text-primary font-medium cursor-pointer"
-            >
-              On-chain balance
-            </Label>
-          </div>
-          <div className="flex items-start space-x-2">
-            <RadioGroupItem
-              value="external"
-              id="external"
-              className="shrink-0"
-            />
-            <Label
-              htmlFor="external"
-              className="text-primary font-medium cursor-pointer"
-            >
-              External on-chain wallet
-            </Label>
-          </div>
-        </RadioGroup>
-      </div>
-      {!isInternalSwap && (
-        <div className="grid gap-4">
-          <div className="flex flex-col gap-3">
-            <Label>Destination Type</Label>
-            <RadioGroup
-              value={externalType}
-              onValueChange={(value) => {
-                setExternalType(value as "address" | "xpub");
-                setDestination("");
-              }}
-              className="flex gap-4 flex-row"
-            >
-              <div className="flex items-start space-x-2">
-                <RadioGroupItem
-                  value="address"
-                  id="address"
-                  className="shrink-0"
-                />
-                <div className="grid gap-1.5">
-                  <Label
-                    htmlFor="address"
-                    className="text-sm font-medium cursor-pointer"
-                  >
-                    Single Address
-                  </Label>
-                  <p className="text-xs text-muted-foreground">
-                    Send to the same address each time
-                  </p>
-                </div>
-              </div>
-              <div className="flex items-start space-x-2">
-                <RadioGroupItem value="xpub" id="xpub" className="shrink-0" />
-                <div className="grid gap-1.5">
-                  <Label
-                    htmlFor="xpub"
-                    className="text-sm font-medium cursor-pointer"
-                  >
-                    XPUB
-                  </Label>
-                  <p className="text-xs text-muted-foreground">
-                    Generate new addresses from extended public key
-                  </p>
-                </div>
-              </div>
-            </RadioGroup>
-          </div>
-          <div className="grid gap-1.5">
-            <Label>
-              {externalType === "address"
-                ? "Receiving on-chain address"
-                : "Extended Public Key (XPUB)"}
-            </Label>
-            <div className="flex gap-2">
-              <Input
-                placeholder={externalType === "address" ? "bc1..." : "xpub..."}
-                value={destination}
-                onChange={(e) => setDestination(e.target.value)}
-                required
-              />
-              <Button
-                type="button"
-                variant="outline"
-                className="px-2"
-                onClick={paste}
-              >
-                <ClipboardPasteIcon className="w-4 h-4" />
-              </Button>
-            </div>
-            <p className="text-xs text-muted-foreground">
-              {externalType === "address"
-                ? "Enter a Bitcoin address to receive swapped funds"
-                : "Enter an XPUB to automatically generate new addresses for each swap"}
-            </p>
-          </div>
+    <>
+      <form onSubmit={onSubmit} className="flex flex-col gap-6">
+        <div>
+          <h2 className="font-medium text-foreground flex items-center gap-1">
+            Lightning <MoveRightIcon /> On-chain
+          </h2>
+          <p className="mt-1 text-muted-foreground">
+            Setup automatic swap of lightning funds into your on-chain balance
+            every time a set threshold is reached.
+          </p>
+          <p className="mt-2 text-muted-foreground flex gap-2 items-center text-sm">
+            <ClockIcon className="w-4 h-4" />
+            Swaps will be made once per hour
+          </p>
         </div>
-      )}
 
-      <div className="flex items-center justify-between border-t pt-4">
-        <Label>Fee</Label>
-        {swapInfo ? (
+        <div className="grid gap-1.5">
+          <Label>Spending balance threshold</Label>
+          <Input
+            type="number"
+            placeholder="Amount in satoshis"
+            value={balanceThreshold}
+            min={swapAmount}
+            onChange={(e) => setBalanceThreshold(e.target.value)}
+            required
+          />
+          <p className="text-xs text-muted-foreground">
+            Swap out as soon as this amount is reached
+          </p>
+        </div>
+
+        <div className="grid gap-1.5">
+          <Label>Swap amount</Label>
+          <Input
+            type="number"
+            placeholder="Amount in satoshis"
+            value={swapAmount}
+            min={swapInfo.minAmount}
+            max={swapInfo.maxAmount}
+            onChange={(e) => setSwapAmount(e.target.value)}
+            required
+          />
+          <p className="text-xs text-muted-foreground">
+            Minimum{" "}
+            <FormattedBitcoinAmount amount={swapInfo.minAmount * 1000} />
+          </p>
+        </div>
+        <div className="flex flex-col gap-4">
+          <Label>Swap to</Label>
+          <RadioGroup
+            value={isInternalSwap ? "internal" : "external"}
+            onValueChange={() => {
+              setDestination("");
+              setInternalSwap(!isInternalSwap);
+            }}
+            className="flex gap-4 flex-row"
+          >
+            <div className="flex items-start space-x-2 mb-2">
+              <RadioGroupItem
+                value="internal"
+                id="internal"
+                className="shrink-0"
+              />
+              <Label
+                htmlFor="internal"
+                className="text-primary font-medium cursor-pointer"
+              >
+                On-chain balance
+              </Label>
+            </div>
+            <div className="flex items-start space-x-2">
+              <RadioGroupItem
+                value="external"
+                id="external"
+                className="shrink-0"
+              />
+              <Label
+                htmlFor="external"
+                className="text-primary font-medium cursor-pointer"
+              >
+                External on-chain wallet
+              </Label>
+            </div>
+          </RadioGroup>
+        </div>
+        {!isInternalSwap && (
+          <div className="grid gap-4">
+            <div className="flex flex-col gap-3">
+              <Label>Destination Type</Label>
+              <RadioGroup
+                value={externalType}
+                onValueChange={(value) => {
+                  setExternalType(value as "address" | "xpub");
+                  setDestination("");
+                }}
+                className="flex gap-4 flex-row"
+              >
+                <div className="flex items-start space-x-2">
+                  <RadioGroupItem
+                    value="address"
+                    id="address"
+                    className="shrink-0"
+                  />
+                  <div className="grid gap-1.5">
+                    <Label
+                      htmlFor="address"
+                      className="text-sm font-medium cursor-pointer"
+                    >
+                      Single Address
+                    </Label>
+                    <p className="text-xs text-muted-foreground">
+                      Send to the same address each time
+                    </p>
+                  </div>
+                </div>
+                <div className="flex items-start space-x-2">
+                  <RadioGroupItem value="xpub" id="xpub" className="shrink-0" />
+                  <div className="grid gap-1.5">
+                    <Label
+                      htmlFor="xpub"
+                      className="text-sm font-medium cursor-pointer"
+                    >
+                      XPUB
+                    </Label>
+                    <p className="text-xs text-muted-foreground">
+                      Generate new addresses from extended public key
+                    </p>
+                  </div>
+                </div>
+              </RadioGroup>
+            </div>
+            <div className="grid gap-1.5">
+              <Label>
+                {externalType === "address"
+                  ? "Receiving on-chain address"
+                  : "Extended Public Key (XPUB)"}
+              </Label>
+              <div className="flex gap-2">
+                <Input
+                  placeholder={
+                    externalType === "address" ? "bc1..." : "xpub..."
+                  }
+                  value={destination}
+                  onChange={(e) => setDestination(e.target.value)}
+                  required
+                />
+                <Button
+                  type="button"
+                  variant="outline"
+                  className="px-2"
+                  onClick={paste}
+                >
+                  <ClipboardPasteIcon className="w-4 h-4" />
+                </Button>
+              </div>
+              <p className="text-xs text-muted-foreground">
+                {externalType === "address"
+                  ? "Enter a Bitcoin address to receive swapped funds"
+                  : "Enter an XPUB to automatically generate new addresses for each swap. You will be asked to enter your unlock password to encrypt it safely"}
+              </p>
+            </div>
+          </div>
+        )}
+
+        <div className="flex items-center justify-between border-t pt-4">
+          <Label>Fee</Label>
           <p className="text-muted-foreground text-sm">
             {swapInfo.albyServiceFee + swapInfo.boltzServiceFee}% + on-chain
             fees
           </p>
-        ) : (
-          <Loading />
-        )}
-      </div>
-      <div className="grid gap-1">
-        <LoadingButton className="w-full" loading={loading}>
-          Begin Auto Swap
-        </LoadingButton>
-        <p className="text-xs text-muted-foreground text-right">
-          powered by{" "}
-          <ExternalLink
-            to="https://boltz.exchange"
-            className="font-medium text-foreground"
-          >
-            boltz.exchange
-          </ExternalLink>
-        </p>
-      </div>
-    </form>
+        </div>
+        <div className="grid gap-1">
+          <LoadingButton className="w-full" loading={loading}>
+            Begin Auto Swap
+          </LoadingButton>
+          <p className="text-xs text-muted-foreground text-right">
+            powered by{" "}
+            <ExternalLink
+              to="https://boltz.exchange"
+              className="font-medium text-foreground"
+            >
+              boltz.exchange
+            </ExternalLink>
+          </p>
+        </div>
+      </form>
+      <AlertDialog
+        open={showUnlockPasswordDialog}
+        onOpenChange={(open) => {
+          setShowUnlockPasswordDialog(open);
+          if (!open) {
+            setUnlockPassword("");
+          }
+        }}
+      >
+        <AlertDialogContent>
+          <form onSubmit={onConfirmUnlockPassword}>
+            <AlertDialogHeader>
+              <AlertDialogTitle>Confirm Auto Swap Setup</AlertDialogTitle>
+              <AlertDialogDescription>
+                <div className="flex flex-col gap-4">
+                  <p>
+                    Please enter your unlock password to encrypt and securely
+                    store the XPUB.
+                  </p>
+                  <div className="grid gap-1.5">
+                    <Label htmlFor="unlockPassword">Unlock Password</Label>
+                    <PasswordInput
+                      id="unlockPassword"
+                      onChange={setUnlockPassword}
+                      autoFocus
+                      value={unlockPassword}
+                    />
+                  </div>
+                </div>
+              </AlertDialogDescription>
+            </AlertDialogHeader>
+            <AlertDialogFooter className="mt-3">
+              <AlertDialogCancel>Cancel</AlertDialogCancel>
+              <Button type="submit" disabled={!unlockPassword || loading}>
+                Confirm
+              </Button>
+            </AlertDialogFooter>
+          </form>
+        </AlertDialogContent>
+      </AlertDialog>
+    </>
   );
 }
 
@@ -350,10 +421,16 @@ function ActiveSwapOutConfig({ swapConfig }: { swapConfig: AutoSwapConfig }) {
         </div>
         <div className="flex justify-between items-center gap-2">
           <div className="font-medium">Destination</div>
-          <div className="truncate text-muted-foreground text-right">
-            {swapConfig.destination
-              ? swapConfig.destination
-              : "On-chain Balance"}
+          <div className="flex min-w-0 items-center justify-end gap-2 text-muted-foreground">
+            <div className="truncate text-right">
+              {swapConfig.destination || "On-chain Balance"}
+            </div>
+            {swapConfig.destination && (
+              <CopyIcon
+                className="cursor-pointer size-4 shrink-0"
+                onClick={() => copyToClipboard(swapConfig.destination)}
+              />
+            )}
           </div>
         </div>
         <div className="flex justify-between items-center gap-2">
@@ -384,11 +461,7 @@ function ActiveSwapOutConfig({ swapConfig }: { swapConfig: AutoSwapConfig }) {
           )}
         </div>
       </div>
-      <Button
-        onClick={() => onDeactivate()}
-        disabled={loading}
-        variant="outline"
-      >
+      <Button onClick={onDeactivate} disabled={loading} variant="outline">
         <XCircleIcon />
         Deactivate Auto Swap
       </Button>

frontend/src/screens/wallet/swap/SwapOutStatus.tsx

@@ -56,17 +56,21 @@ export default function SwapOutStatus() {
               {swapStatus === "PENDING" && <Loading className="w-4 h-4 mr-2" />}
               {statusText[swapStatus]}
             </CardTitle>
-            <CardDescription className="flex items-center justify-center gap-2 text-muted-foreground text-sm">
+            <CardDescription className="text-muted-foreground text-sm">
               {swap.autoSwap && (
-                <span>Auto swap{swap.usedXpub && <> to xpub</>} • </span>
+                <p className="text-center mb-1">
+                  Auto swap{swap.usedXpub && <> to xpub</>}
+                </p>
               )}
-              Swap ID: {swap.id}{" "}
-              <CopyIcon
-                className="cursor-pointer text-muted-foreground size-4"
-                onClick={() => {
-                  copyToClipboard(swap.id);
-                }}
-              />
+              <div className="flex items-center justify-center gap-2">
+                Swap ID: {swap.id}{" "}
+                <CopyIcon
+                  className="cursor-pointer text-muted-foreground size-4"
+                  onClick={() => {
+                    copyToClipboard(swap.id);
+                  }}
+                />
+              </div>
             </CardDescription>
           </CardHeader>
           <CardContent className="flex flex-col items-center gap-4">

service/start.go

@@ -301,7 +301,7 @@ func (svc *service) StartApp(encryptionKey string) error {
 		return err
 	}
 
-	svc.swapsService = swaps.NewSwapsService(ctx, svc.db, svc.cfg, svc.keys, svc.eventPublisher, svc.GetLNClient(), svc.transactionsService)
+	svc.swapsService = swaps.NewSwapsService(ctx, svc.db, svc.cfg, svc.keys, svc.eventPublisher, svc.GetLNClient(), svc.transactionsService, encryptionKey)
 
 	svc.publishAllAppInfoEvents()
 

swaps/swaps_service.go

@@ -37,23 +37,25 @@ import (
 type Swap = db.Swap
 
 type swapsService struct {
-	autoSwapOutCancelFn context.CancelFunc
-	db                  *gorm.DB
-	ctx                 context.Context
-	lnClient            lnclient.LNClient
-	cfg                 config.Config
-	keys                keys.Keys
-	eventPublisher      events.EventPublisher
-	transactionsService transactions.TransactionsService
-	boltzApi            *boltz.Api
-	boltzWs             *boltz.Websocket
-	swapListeners       map[string]chan boltz.SwapUpdate
-	swapListenersLock   sync.Mutex
+	autoSwapOutCancelFn      context.CancelFunc
+	db                       *gorm.DB
+	ctx                      context.Context
+	lnClient                 lnclient.LNClient
+	cfg                      config.Config
+	keys                     keys.Keys
+	eventPublisher           events.EventPublisher
+	transactionsService      transactions.TransactionsService
+	boltzApi                 *boltz.Api
+	boltzWs                  *boltz.Websocket
+	swapListeners            map[string]chan boltz.SwapUpdate
+	swapListenersLock        sync.Mutex
+	autoSwapOutXpubLock      sync.Mutex
+	autoSwapOutDecryptedXpub string
 }
 
 type SwapsService interface {
 	StopAutoSwapOut()
-	EnableAutoSwapOut() error
+	EnableAutoSwapOut(encryptionKey string) error
 	SwapOut(amount uint64, destination string, autoSwap, usedXpubDerivation bool) (*SwapResponse, error)
 	SwapIn(amount uint64, autoSwap bool) (*SwapResponse, error)
 	GetSwapOutInfo() (*SwapInfo, error)
@@ -61,6 +63,9 @@ type SwapsService interface {
 	RefundSwap(swapId, address string, enableRetries bool) error
 	GetSwap(swapId string) (*Swap, error)
 	ListSwaps() ([]Swap, error)
+	GetDecryptedAutoSwapXpub() string
+	ValidateAddress(address string) error
+	ValidateXpub(xpub string) error
 }
 
 const (
@@ -101,7 +106,7 @@ type SwapResponse struct {
 }
 
 func NewSwapsService(ctx context.Context, db *gorm.DB, cfg config.Config, keys keys.Keys, eventPublisher events.EventPublisher,
-	lnClient lnclient.LNClient, transactionsService transactions.TransactionsService) SwapsService {
+	lnClient lnclient.LNClient, transactionsService transactions.TransactionsService, encryptionKey string) SwapsService {
 	boltzApi := &boltz.Api{URL: cfg.GetEnv().BoltzApi}
 	boltzWs := boltzApi.NewWebsocket()
 
@@ -137,7 +142,7 @@ func NewSwapsService(ctx context.Context, db *gorm.DB, cfg config.Config, keys k
 		}
 	}()
 
-	err := svc.EnableAutoSwapOut()
+	err := svc.EnableAutoSwapOut(encryptionKey)
 	if err != nil {
 		logger.Logger.WithError(err).Error("Couldn't enable auto swaps")
 	}
@@ -153,13 +158,28 @@ func (svc *swapsService) StopAutoSwapOut() {
 		svc.autoSwapOutCancelFn()
 		logger.Logger.Info("Auto swap out service stopped")
 	}
+	svc.autoSwapOutXpubLock.Lock()
+	svc.autoSwapOutDecryptedXpub = ""
+	svc.autoSwapOutXpubLock.Unlock()
 }
 
-func (svc *swapsService) EnableAutoSwapOut() error {
+func (svc *swapsService) EnableAutoSwapOut(encryptionKey string) error {
 	svc.StopAutoSwapOut()
 
 	ctx, cancelFn := context.WithCancel(svc.ctx)
-	swapDestination, _ := svc.cfg.Get(config.AutoSwapDestinationKey, "")
+	svc.autoSwapOutXpubLock.Lock()
+	svc.autoSwapOutDecryptedXpub = ""
+	svc.autoSwapOutXpubLock.Unlock()
+
+	swapDestination, _ := svc.cfg.Get(config.AutoSwapDestinationKey, encryptionKey)
+	if swapDestination != "" {
+		if err := svc.ValidateXpub(swapDestination); err == nil {
+			svc.autoSwapOutXpubLock.Lock()
+			svc.autoSwapOutDecryptedXpub = swapDestination
+			svc.autoSwapOutXpubLock.Unlock()
+		}
+	}
+
 	balanceThresholdStr, _ := svc.cfg.Get(config.AutoSwapBalanceThresholdKey, "")
 	amountStr, _ := svc.cfg.Get(config.AutoSwapAmountKey, "")
 
@@ -202,15 +222,17 @@ func (svc *swapsService) EnableAutoSwapOut() error {
 
 				actualDestination := swapDestination
 				var usedXpubDerivation bool
-				if swapDestination != "" {
-					if err := svc.validateXpub(swapDestination); err == nil {
-						actualDestination, err = svc.getNextUnusedAddressFromXpub()
-						if err != nil {
-							logger.Logger.WithError(err).Error("Failed to get next address from xpub")
-							continue
-						}
-						usedXpubDerivation = true
+				// Check if we have a decrypted XPUB in memory
+				svc.autoSwapOutXpubLock.Lock()
+				hasDecryptedXpub := svc.autoSwapOutDecryptedXpub != ""
+				svc.autoSwapOutXpubLock.Unlock()
+				if hasDecryptedXpub {
+					actualDestination, err = svc.getNextUnusedAddressFromXpub()
+					if err != nil {
+						logger.Logger.WithError(err).Error("Failed to get next address from xpub")
+						continue
 					}
+					usedXpubDerivation = true
 				}
 
 				logger.Logger.WithFields(logrus.Fields{
@@ -1428,7 +1450,7 @@ func (svc *swapsService) bumpAutoswapXpubIndex(swapId uint) {
 	}).Info("Updated xpub index start for swap address")
 }
 
-func (svc *swapsService) deriveAddressFromXpub(xpub string, index uint32) (string, error) {
+func (svc *swapsService) getChainParams() (*chaincfg.Params, error) {
 	var netParams *chaincfg.Params
 	switch svc.cfg.GetNetwork() {
 	case "bitcoin", "mainnet":
@@ -1440,7 +1462,16 @@ func (svc *swapsService) deriveAddressFromXpub(xpub string, index uint32) (strin
 	case "signet":
 		netParams = &chaincfg.SigNetParams
 	default:
-		return "", fmt.Errorf("unsupported network: %s", svc.cfg.GetNetwork())
+		return nil, fmt.Errorf("unsupported network: %s", svc.cfg.GetNetwork())
+	}
+
+	return netParams, nil
+}
+
+func (svc *swapsService) deriveAddressFromXpub(xpub string, index uint32) (string, error) {
+	netParams, err := svc.getChainParams()
+	if err != nil {
+		return "", err
 	}
 
 	extPubKey, err := hdkeychain.NewKeyFromString(xpub)
@@ -1487,13 +1518,12 @@ func (svc *swapsService) checkAddressHasTransactions(address string, esploraApiR
 }
 
 func (svc *swapsService) getNextUnusedAddressFromXpub() (string, error) {
-	destination, _ := svc.cfg.Get(config.AutoSwapDestinationKey, "")
+	// Use the decrypted XPUB from memory (already decrypted during EnableAutoSwapOut)
+	svc.autoSwapOutXpubLock.Lock()
+	destination := svc.autoSwapOutDecryptedXpub
+	svc.autoSwapOutXpubLock.Unlock()
 	if destination == "" {
-		return "", errors.New("no destination configured")
-	}
-
-	if err := svc.validateXpub(destination); err != nil {
-		return "", errors.New("destination is not a valid XPUB")
+		return "", errors.New("no XPUB configured")
 	}
 
 	indexStr, err := svc.cfg.Get(config.AutoSwapXpubIndexStart, "")
@@ -1559,10 +1589,36 @@ func (svc *swapsService) getNextUnusedAddressFromXpub() (string, error) {
 	return "", fmt.Errorf("could not find unused address within %d addresses starting from index %d", addressLookAheadLimit, index)
 }
 
-func (svc *swapsService) validateXpub(xpub string) error {
-	_, err := hdkeychain.NewKeyFromString(xpub)
+func (svc *swapsService) ValidateAddress(address string) error {
+	netParams, err := svc.getChainParams()
+	if err != nil {
+		return err
+	}
+
+	_, err = btcutil.DecodeAddress(address, netParams)
+	if err != nil {
+		return fmt.Errorf("invalid bitcoin address: %w", err)
+	}
+
+	return nil
+}
+
+func (svc *swapsService) ValidateXpub(xpub string) error {
+	extendedKey, err := hdkeychain.NewKeyFromString(xpub)
 	if err != nil {
 		return fmt.Errorf("invalid xpub: %w", err)
 	}
+
+	if extendedKey.IsPrivate() {
+		return fmt.Errorf("private extended key not allowed")
+	}
+
 	return nil
 }
+
+func (svc *swapsService) GetDecryptedAutoSwapXpub() string {
+	svc.autoSwapOutXpubLock.Lock()
+	defer svc.autoSwapOutXpubLock.Unlock()
+
+	return svc.autoSwapOutDecryptedXpub
+}