BOLT12 Lightning Payouts with Ocean

Prerequisites

1. Sparrow Wallet https://www.sparrowwallet.com
2. Bull Bitcoin Wallet https://www.bullbitcoin.com
3. Bitcoin Knots https://apps.umbrel.com/app/bitcoin-knots
4. DATUM Gateway https://apps.umbrel.com/app/datum
5. Core Lightning https://apps.umbrel.com/app/core-lightning

Setup

• Install Sparrow and create a wallet.
• Install Bitcoin Knots, DATUM Gateway, and Core Lightning on Umbrel.
• Configure DATUM Gateway with your Bitcoin wallet address from Sparrow and make sure it is set to pooled mining.
• Configure your miners to point to your self-hosted Bitcoin node or to Ocean pool https://ocean.xyz/getstarted
• Start mining and monitor your stats to appear at https://ocean.xyz/stats using your Bitcoin wallet address from Sparrow.
• Launch Core Lightning on Umbrel.
• Deposit at least 130000 sats of onchain BTC into your Core Lightning wallet on Umbrel. Allocate 100000 sats to open a channel and maintain a minimum balance of 25000 sats in your Core Lightning wallet.

• Open a channel in Core Lightning with the allocated 100000 sats. For this setup, I use LNBiG [Edge-1] to open a channel. Just copy the node id and paste it in the open channel window in Core Lightning.

• Wait for the channel to be confirmed.

• Create your Bull Bitcoin wallet. Make sure to backup your wallet recovery phrase.
• In Bull Bitcoin, navigate to the "Receive" section and select "Lightning".
• Input the amount of sats you want to receive from your Core Lightning wallet. This will generate an invoice. Try a small amount first if the payment fails.

• In Core Lightning, navigate to the "Send" section and input the invoice generated from Bull Bitcoin.

• Send and wait for the payment to be confirmed.

• You should now see the payment in your Bull Bitcoin wallet.

• You are now ready to receive BOLT12 offers in Core Lightning for payouts with Ocean.
• Follow the instructions in https://ocean.xyz/docs/lightning to configure your Bitcoin address to receive lightning payouts.
  • Navigate to your Bitcoin address configuration in Ocean https://ocean.xyz/config/bc1qyourwalletaddress
  • In Core Lightning, navigate to the "Receive" section and input the Lightning BOLT12 offer generated in Ocean for your Bitcoin address.
  
• Wait for the next couple of blocks found and you should see the payout in your Core Lightning wallet.