From 9fa0fea3414b419dc85f204bbb2b1e7daaaec6e5 Mon Sep 17 00:00:00 2001
From: Ash Manning <ash@layertwolabs.com>
Date: Wed, 20 May 2026 22:56:30 +0800
Subject: [PATCH 1/2] Wallet: apply mempool txs

---
 lib/wallet/cusf_block_producer.rs | 51 ++++++++++++++++++++++++++++---
 lib/wallet/error.rs               |  4 ++-
 2 files changed, 50 insertions(+), 5 deletions(-)

diff --git a/lib/wallet/cusf_block_producer.rs b/lib/wallet/cusf_block_producer.rs
index f75bd4d..f9ff705 100644
--- a/lib/wallet/cusf_block_producer.rs
+++ b/lib/wallet/cusf_block_producer.rs
@@ -1,4 +1,9 @@
-use std::{borrow::Cow, collections::HashMap, future::Future};
+use std::{
+    borrow::Cow,
+    collections::HashMap,
+    future::Future,
+    time::{SystemTime, UNIX_EPOCH},
+};
 
 use bitcoin::{BlockHash, Transaction, Txid, hashes::Hash as _};
 use bitcoin_jsonrpsee::client::{GetBlockClient, U8Witness};
@@ -12,6 +17,7 @@ use cusf_enforcer_mempool::{
 use tracing::instrument;
 
 use crate::{
+    errors::ErrorChain,
     messages::{CoinbaseBuilder, parse_m8_tx},
     validator::Validator,
     wallet::{Wallet, error},
@@ -206,8 +212,19 @@ impl CusfEnforcer for Wallet {
         // `sync_wallet_to_tip` would fail in `get_block_infos` and bubble an
         // error up that prevents the standalone driver from issuing
         // `invalidateblock` to bitcoind.
-        if matches!(res, ConnectBlockAction::Accept { .. }) {
-            let () = sync_wallet_to_tip(self, block.block_hash(), Some(block)).await?;
+        match &res {
+            ConnectBlockAction::Accept { remove_mempool_txs } => {
+                let () = sync_wallet_to_tip(self, block.block_hash(), Some(block)).await?;
+                let mut wallet_write = self.inner.write_wallet().await?;
+                let now = SystemTime::now()
+                    .duration_since(UNIX_EPOCH)
+                    .unwrap()
+                    .as_secs();
+                wallet_write.with_mut(|wallet| {
+                    wallet.apply_evicted_txs(remove_mempool_txs.iter().map(|txid| (*txid, now)))
+                })
+            }
+            ConnectBlockAction::Reject => (),
         }
         Ok(res)
     }
@@ -248,7 +265,33 @@ impl CusfEnforcer for Wallet {
     where
         TxRef: std::borrow::Borrow<Transaction>,
     {
-        self.inner.validator.clone().accept_tx(tx, tx_inputs)
+        let res = self.inner.validator.clone().accept_tx(tx, tx_inputs)?;
+        match res {
+            TxAcceptAction::Accept { .. } => {
+                // TODO: Ideally we could push these updates to a channel, and
+                // a wallet task could apply the updates
+                tokio::spawn({
+                    let inner = self.inner.clone();
+                    let tx = tx.clone();
+                    || async move {
+                        let mut wallet_write = match inner.write_wallet().await {
+                            Ok(wallet_write) => wallet_write,
+                            Err(err) => {
+                                tracing::error!("{:#}", ErrorChain::new(&err));
+                                return;
+                            }
+                        };
+                        let now = SystemTime::now()
+                            .duration_since(UNIX_EPOCH)
+                            .unwrap()
+                            .as_secs();
+                        wallet_write.with_mut(|wallet| wallet.apply_unconfirmed_txs([(tx, now)]));
+                    }
+                }());
+            }
+            TxAcceptAction::Reject => (),
+        }
+        Ok(res)
     }
 }
 
diff --git a/lib/wallet/error.rs b/lib/wallet/error.rs
index 8ea43d0..ecd1e60 100644
--- a/lib/wallet/error.rs
+++ b/lib/wallet/error.rs
@@ -914,10 +914,12 @@ pub enum InitialSync {
 
 #[derive(Debug, Diagnostic, Error)]
 pub enum ConnectBlock {
+    #[error(transparent)]
+    NotUnlocked(#[from] NotUnlocked),
     #[error(transparent)]
     Validator(#[from] <Validator as CusfEnforcer>::ConnectBlockError),
     #[error(transparent)]
-    Wallet(#[from] SyncWalletToTip),
+    SyncWalletToTip(#[from] SyncWalletToTip),
 }
 
 #[derive(Debug, Diagnostic, Error)]

From af14e87d4ec4226a74dabc60366952a598b713e3 Mon Sep 17 00:00:00 2001
From: Ash Manning <ash@layertwolabs.com>
Date: Wed, 20 May 2026 23:05:58 +0800
Subject: [PATCH 2/2] fix clippy lints

---
 app/main.rs                         | 14 +++++++-------
 lib/validator/sync_state_summary.rs |  2 +-
 2 files changed, 8 insertions(+), 8 deletions(-)

diff --git a/app/main.rs b/app/main.rs
index f6dec0f..970c535 100644
--- a/app/main.rs
+++ b/app/main.rs
@@ -729,13 +729,13 @@ async fn run_exit_after_sync(
 
     let start_height = validator.try_get_block_height().ok().flatten();
 
-    if let Some(current) = start_height {
-        if current > goal_height {
-            return Err(miette!(
-                "data dir is already synced to height {current}, past the requested height \
-                 {goal_height}"
-            ));
-        }
+    if let Some(current) = start_height
+        && current > goal_height
+    {
+        return Err(miette!(
+            "data dir is already synced to height {current}, past the requested height \
+                {goal_height}"
+        ));
     }
 
     let target_hash = mainchain_client
diff --git a/lib/validator/sync_state_summary.rs b/lib/validator/sync_state_summary.rs
index d3cd146..7fc478d 100644
--- a/lib/validator/sync_state_summary.rs
+++ b/lib/validator/sync_state_summary.rs
@@ -66,7 +66,7 @@ impl Validator {
                 };
 
             // Canonical ordering of bundles by M6id.
-            pending_withdrawals.sort_by(|a, b| a.m6id.0.cmp(&b.m6id.0));
+            pending_withdrawals.sort_by_key(|summary| summary.m6id.0);
 
             // Human-readable title/description, best-effort
             let declaration = SidechainDeclaration::try_from(&sidechain.proposal.description).ok();