Partnerfy

Partnerfy is a desktop application for creating and managing Simplicity covenant-based contracts on Liquid Testnet. It provides workflows for working with multisig contracts (P2MS) and covenant-enforced vouchers.

It won 3rd place in SatsHack III.

Desktop App

Overview

Partnerfy is a Dioxus desktop application (Rust) that enables you to:

• Generate and compile Simplicity source files for 2-of-3 multisig contracts
• Create covenant-based contract addresses on Liquid Testnet
• Fund contracts via the Liquid Testnet faucet
• Build, sign, and broadcast spending transactions
• Work with covenants that enforce specific output structures (voucher workflow)

The application communicates with Elements (Liquid) via RPC and integrates SimplicityHL and hal-simplicity for covenant creation and validation.

Core Concept

Covenant-Based Vouchers

Partnerfy implements a covenant system where:

1. Voucher UTXOs are locked under Simplicity covenants
2. When a participant spends a voucher:
   • Outputs must pay to approved partner addresses, the promoter (refund path), or a 2-of-m multisig
   • Any change output returning to the participant is automatically locked again by the same covenant
3. The covenant repeats recursively for all descendant outputs, ensuring funds remain within the system

Actors

Role	Description
Promoter	Deploys the Simplicity covenant, funds voucher pool, distributes voucher UTXOs
Participant	Receives vouchers, redeems them at partner locations, inherits covenant on change
Partner	Accepts redemption transactions, validates them, and receives funds

Technology Stack

Layer	Function	Tools
Frontend/UI	Desktop application UI	Dioxus
Logic/Core	RPC management, transaction assembly, Simplicity witness handling	Rust, elements crate
Node	On-chain communication	elementsd (Liquid Testnet)
Covenant Tooling	Build, compile, and inspect Simplicity covenants	SimplicityHL, hal-simplicity

Project Structure

Partnerfy/
├── partnerfy_app/          # Main application (Dioxus desktop app)
│   ├── src/                # Source code
│   │   ├── app_core/       # Core business logic (RPC, transaction building, witness handling)
│   │   ├── views/          # UI components (landing, P2MS, voucher workflows)
│   │   └── components/     # Reusable UI components
│   ├── assets/             # Static assets (CSS, images)
│   └── Cargo.toml          # Rust dependencies
├── p2ms.simf               # Simplicity source for 2-of-3 multisig
├── cov_p2ms.simf           # Simplicity source for covenant-based voucher
├── elements.conf.example   # Elements node configuration template
├── WORKFLOW.md             # Detailed workflow documentation
└── INSTRUCTIONS.md         # Technical implementation details

Quick Start

For detailed setup, build, and run instructions, see the Application README.

Prerequisites

• Rust (latest stable)
• Dioxus CLI (cargo install dioxus-cli)
• Elements Core (elementsd, elements-cli)
• SimplicityHL Compiler (simc)
• hal-simplicity (specific branch: 2025-10/pset-signer)

Quick Run

1. Setup Elements node (see elements.conf.example)
2. Start elementsd on Liquid Testnet
3. Build and run:

   cd partnerfy_app
   cargo run --release

Workflows

1. Multisig (P2MS) Workflow

Create a 2-of-3 multisig contract where funds require 2 out of 3 signatures to spend.

Steps:

1. Generate P2MS Simplicity source file
2. Compile Simplicity source
3. Create contract address
4. Fund contract via faucet
5. Create spending PSET
6. Sign and finalize transaction
7. Broadcast transaction

2. Voucher (Covenant) Workflow

Create a covenant-enforced voucher where change outputs automatically inherit the covenant.

Steps:

1. Generate voucher Simplicity source file (with covenant)
2. Compile and create contract address
3. Fund contract via faucet
4. Create spending PSET (must create exactly 3 outputs: payment, recursive covenant, fee)
5. Sign and finalize (covenant verifies structure)
6. Broadcast transaction

Documentation

• Application README - Detailed setup, build, run, and test instructions
• WORKFLOW.md - Complete workflow analysis and command sequences
• INSTRUCTIONS.md - Technical implementation details

Resources

• Liquid Testnet Faucet: https://liquidtestnet.com/faucet
• Liquid Testnet Explorer: https://blockstream.info/liquidtestnet
• Elements Core: https://github.com/ElementsProject/elements
• SimplicityHL: https://github.com/ElementsProject/simplicity
• hal-simplicity: https://github.com/Blockstream/hal-simplicity
• Dioxus: https://dioxuslabs.com

Security Notes

⚠️ Important: This application is designed for Liquid Testnet only. Never use on mainnet until thoroughly tested.

• Always test on Liquid Testnet first
• Store private keys securely (encrypt locally, never share)
• Validate witness correctness before broadcasting
• Verify covenant structure for voucher contracts
• Keep transaction logs for off-chain records