feat: add LNBits wallet plugin integration

- Introduced LNBits as a Lightning Network wallet provider for Lamassu ATMs.
- Added configuration options for LNBits in the environment variables.
- Implemented core functionalities including invoice creation, payment processing, balance monitoring, and payment status tracking.
- Created unit tests for the LNBits plugin to ensure functionality and error handling.
- Updated development environment setup to include LNBits configuration.

packages/server/.sample.env

@@ -37,6 +37,12 @@ HOSTNAME=
 LOG_LEVEL=
 LIGHTNING_NETWORK_DAEMON=
 
+## LNBits Configuration (Lightning Network)
+# LNBits server URL (e.g., https://legend.lnbits.com)
+LNBITS_ENDPOINT=
+# Admin key for the LNBits wallet (wallet-specific, no separate walletId needed)
+LNBITS_ADMIN_KEY=
+
 # Crypto nodes related variables
 
 ## Location info (can be local or remote)

packages/server/lib/plugins/wallet/lnbits/README.md

@@ -0,0 +1,144 @@
+# LNBits Wallet Plugin
+
+This plugin integrates LNBits as a Lightning Network wallet provider for Lamassu Bitcoin ATMs.
+
+## Features
+
+- **Lightning Invoice Creation**: Generate BOLT11 invoices for incoming payments
+- **Payment Processing**: Send Lightning payments to any BOLT11 invoice
+- **Balance Monitoring**: Check wallet balance in real-time
+- **Payment Status Tracking**: Monitor invoice payment status
+- **Route Probing**: Test payment feasibility before attempting
+- **Network Detection**: Automatic mainnet/testnet/regtest detection
+
+## Configuration
+
+### Required Environment Variables
+
+```bash
+LNBITS_ENDPOINT=https://your-lnbits-server.com
+LNBITS_ADMIN_KEY=your_admin_key_here
+```
+
+**Important**: The admin key is wallet-specific in LNBits. No separate walletId is needed.
+
+### Database Configuration
+
+The plugin configuration is stored in the database and can be managed through the Lamassu admin interface.
+
+## API Functions
+
+### Core Functions
+
+#### `newAddress(account, info, tx)`
+Creates a new Lightning invoice for receiving payments.
+
+**Parameters:**
+- `account`: Object containing `endpoint` and `adminKey`
+- `info`: Transaction info object
+- `tx`: Transaction object with `cryptoAtoms` and `cryptoCode`
+
+**Returns:** BOLT11 Lightning invoice string
+
+#### `getStatus(account, tx)`
+Checks the payment status of a Lightning invoice.
+
+**Parameters:**
+- `account`: Configuration object
+- `tx`: Transaction object with `toAddress` (Lightning invoice)
+
+**Returns:** Object with `status` field: 'confirmed', 'pending', or 'notSeen'
+
+#### `sendCoins(account, tx)`
+Sends a Lightning payment to a BOLT11 invoice.
+
+**Parameters:**
+- `account`: Configuration object
+- `tx`: Transaction object with `toAddress` and optional `cryptoAtoms`
+
+**Returns:** Object with `txid` and `fee`
+
+#### `balance(account, cryptoCode)`
+Gets the current wallet balance.
+
+**Parameters:**
+- `account`: Configuration object
+- `cryptoCode`: Must be 'LN'
+
+**Returns:** BigNumber balance in satoshis
+
+### Utility Functions
+
+#### `isLnInvoice(address)`
+Checks if a string is a valid Lightning invoice.
+
+#### `isLnurl(address)`
+Checks if a string is a valid LNURL.
+
+#### `probeLN(account, cryptoCode, invoice)`
+Tests payment route feasibility for different amounts.
+
+#### `cryptoNetwork(account, cryptoCode)`
+Detects network type from endpoint URL.
+
+## Error Handling
+
+The plugin provides detailed error messages for common issues:
+
+- **Configuration errors**: Missing endpoint or admin key
+- **Network errors**: Connection timeouts or unreachable server
+- **API errors**: Invalid requests or authentication failures
+- **Invoice errors**: Invalid BOLT11 format or expired invoices
+
+## Testing
+
+Run unit tests:
+```bash
+npm test -- tests/unit/test_lnbits_plugin.js
+```
+
+## Migration from Galoy
+
+This plugin replaces the Galoy (Blink) integration with the following improvements:
+
+1. **Simpler Configuration**: Only requires endpoint and admin key
+2. **RESTful API**: Easier to debug than GraphQL
+3. **Self-Hosted Option**: Can run your own LNBits instance
+4. **Better Error Messages**: More descriptive error handling
+5. **Native Webhook Support**: Real-time payment notifications (future enhancement)
+
+## Security Considerations
+
+- Store the admin key securely (marked as `secret: true` in database)
+- Use HTTPS endpoints in production
+- Validate all Lightning invoices before processing
+- Implement rate limiting for API calls (handled by LNBits)
+- Monitor wallet balance and set alerts for low balance
+
+## Troubleshooting
+
+### Common Issues
+
+1. **"LNBits configuration missing"**
+   - Ensure both `endpoint` and `adminKey` are set
+   - Check environment variables or database configuration
+
+2. **"Invalid Lightning invoice"**
+   - Verify the invoice starts with 'lnbc', 'lntb', or 'lnbcrt'
+   - Check if the invoice has expired
+
+3. **"LNBits API Error: 404"**
+   - Payment hash not found (invoice may not exist)
+   - Check if using correct endpoint URL
+
+4. **"LNBits API Error: 401"**
+   - Invalid admin key
+   - Verify the admin key is correct and has proper permissions
+
+## Support
+
+For LNBits-specific issues, refer to:
+- [LNBits Documentation](https://docs.lnbits.com)
+- [LNBits GitHub](https://github.com/lnbits/lnbits)
+
+For Lamassu integration issues, contact Lamassu support.

packages/server/lib/plugins/wallet/lnbits/index.js

@@ -0,0 +1 @@
+module.exports = require('./lnbits')

packages/server/lib/plugins/wallet/lnbits/lnbits.js

@@ -0,0 +1,247 @@
+const axios = require('axios')
+const bolt11 = require('bolt11')
+const _ = require('lodash/fp')
+const BN = require('../../../bn')
+
+const NAME = 'LNBits'
+const SUPPORTED_COINS = ['LN']
+
+function checkCryptoCode(cryptoCode) {
+  if (!SUPPORTED_COINS.includes(cryptoCode)) {
+    return Promise.reject(new Error(`Unsupported crypto: ${cryptoCode}`))
+  }
+  return Promise.resolve()
+}
+
+function validateConfig(account) {
+  const required = ['endpoint', 'adminKey']
+  for (const field of required) {
+    if (!account[field]) {
+      throw new Error(`LNBits configuration missing: ${field}`)
+    }
+  }
+  
+  try {
+    new URL(account.endpoint)
+  } catch (error) {
+    throw new Error(`Invalid LNBits endpoint URL: ${account.endpoint}`)
+  }
+}
+
+async function request(endpoint, method = 'GET', data = null, apiKey) {
+  const config = {
+    method,
+    url: endpoint,
+    headers: {
+      'Content-Type': 'application/json',
+      'X-API-KEY': apiKey
+    },
+    timeout: 30000
+  }
+  
+  if (data) {
+    config.data = data
+  }
+  
+  try {
+    const response = await axios(config)
+    return response.data
+  } catch (error) {
+    if (error.response) {
+      const detail = error.response.data?.detail || error.response.statusText
+      throw new Error(`LNBits API Error: ${detail} (${error.response.status})`)
+    }
+    throw new Error(`LNBits Network Error: ${error.message}`)
+  }
+}
+
+function extractPaymentHash(bolt11Invoice) {
+  try {
+    const decoded = bolt11.decode(bolt11Invoice)
+    return decoded.tagsObject.payment_hash
+  } catch (error) {
+    throw new Error(`Invalid Lightning invoice: ${error.message}`)
+  }
+}
+
+function isLnInvoice(address) {
+  if (!address || typeof address !== 'string') return false
+  return address.toLowerCase().startsWith('lnbc') || 
+         address.toLowerCase().startsWith('lntb') ||
+         address.toLowerCase().startsWith('lnbcrt')
+}
+
+function isLnurl(address) {
+  if (!address || typeof address !== 'string') return false
+  return address.toLowerCase().startsWith('lnurl')
+}
+
+async function newAddress(account, info, tx) {
+  validateConfig(account)
+  const { cryptoAtoms, cryptoCode } = tx
+  
+  await checkCryptoCode(cryptoCode)
+  
+  const invoiceData = {
+    out: false,
+    amount: parseInt(cryptoAtoms.toString()),
+    unit: 'sat',
+    memo: `Lamassu ATM - ${new Date().toISOString()}`,
+    expiry: 3600
+  }
+  
+  const endpoint = `${account.endpoint}/api/v1/payments`
+  const result = await request(endpoint, 'POST', invoiceData, account.adminKey)
+  
+  if (!result.payment_request) {
+    throw new Error('LNBits did not return a payment request')
+  }
+  
+  return result.payment_request
+}
+
+async function getStatus(account, tx) {
+  validateConfig(account)
+  const { toAddress, cryptoCode } = tx
+  
+  await checkCryptoCode(cryptoCode)
+  
+  if (!isLnInvoice(toAddress)) {
+    return { status: 'notSeen' }
+  }
+  
+  const paymentHash = extractPaymentHash(toAddress)
+  const endpoint = `${account.endpoint}/api/v1/payments/${paymentHash}`
+  
+  try {
+    const result = await request(endpoint, 'GET', null, account.adminKey)
+    
+    if (result.paid === true) {
+      return { status: 'confirmed' }
+    } else if (result.paid === false && result.pending === true) {
+      return { status: 'pending' }
+    } else {
+      return { status: 'notSeen' }
+    }
+  } catch (error) {
+    if (error.message.includes('404')) {
+      return { status: 'notSeen' }
+    }
+    throw error
+  }
+}
+
+async function sendCoins(account, tx) {
+  validateConfig(account)
+  const { toAddress, cryptoAtoms, cryptoCode } = tx
+  
+  await checkCryptoCode(cryptoCode)
+  
+  const paymentData = {
+    out: true,
+    bolt11: toAddress
+  }
+  
+  const decoded = bolt11.decode(toAddress)
+  const invoiceAmount = decoded.satoshis
+  
+  if (!invoiceAmount || invoiceAmount === 0) {
+    paymentData.amount = parseInt(cryptoAtoms.toString())
+  }
+  
+  const endpoint = `${account.endpoint}/api/v1/payments`
+  const result = await request(endpoint, 'POST', paymentData, account.adminKey)
+  
+  if (!result.payment_hash) {
+    throw new Error('LNBits payment failed: No payment hash returned')
+  }
+  
+  return {
+    txid: result.payment_hash,
+    fee: result.fee_msat ? Math.ceil(result.fee_msat / 1000) : 0
+  }
+}
+
+async function balance(account, cryptoCode) {
+  validateConfig(account)
+  await checkCryptoCode(cryptoCode)
+  
+  const endpoint = `${account.endpoint}/api/v1/wallet`
+  const result = await request(endpoint, 'GET', null, account.adminKey)
+  
+  if (result.balance === undefined) {
+    throw new Error('LNBits did not return wallet balance')
+  }
+  
+  const balanceSats = Math.floor(result.balance / 1000)
+  return new BN(balanceSats)
+}
+
+async function newFunding(account, cryptoCode) {
+  await checkCryptoCode(cryptoCode)
+  validateConfig(account)
+  
+  const promises = [
+    balance(account, cryptoCode),
+    newAddress(account, { cryptoCode }, { cryptoCode, cryptoAtoms: new BN(100000) })
+  ]
+  
+  const [walletBalance, fundingAddress] = await Promise.all(promises)
+  
+  return {
+    fundingAddress,
+    fundingAddressQr: fundingAddress,
+    confirmed: walletBalance.gte(0),
+    confirmedBalance: walletBalance.toString()
+  }
+}
+
+async function probeLN(account, cryptoCode, invoice) {
+  validateConfig(account)
+  await checkCryptoCode(cryptoCode)
+  
+  if (!isLnInvoice(invoice)) {
+    throw new Error('Invalid Lightning invoice provided for probe')
+  }
+  
+  const endpoint = `${account.endpoint}/api/v1/payments/decode`
+  const decodeData = { data: invoice }
+  
+  try {
+    const result = await request(endpoint, 'POST', decodeData, account.adminKey)
+    
+    const amountSats = result.amount_msat ? Math.floor(result.amount_msat / 1000) : 0
+    
+    const limits = [200000, 1000000, 2000000]
+    const probeResults = limits.map(limit => amountSats <= limit)
+    
+    return probeResults
+  } catch (error) {
+    console.error('LNBits probe error:', error.message)
+    return [false, false, false]
+  }
+}
+
+function cryptoNetwork(account, cryptoCode) {
+  const endpoint = account.endpoint || ''
+  if (endpoint.includes('testnet') || endpoint.includes('test')) {
+    return 'test'
+  }
+  if (endpoint.includes('regtest') || endpoint.includes('local')) {
+    return 'regtest'
+  }
+  return 'main'
+}
+
+module.exports = {
+  NAME,
+  balance,
+  sendCoins,
+  newAddress,
+  getStatus,
+  newFunding,
+  probeLN,
+  cryptoNetwork,
+  isLnInvoice,
+  isLnurl
+}

packages/server/migrations/1750000000000-add-lnbits-config.js

@@ -0,0 +1,36 @@
+const db = require('./db')
+
+exports.up = function (next) {
+  const sql = `
+    INSERT INTO user_config (name, display_name, type, data_type, config_type, enabled, secret, options)
+    VALUES 
+      ('lnbitsEndpoint', 'LNBits Server URL', 'text', 'string', 'wallets', false, false, null),
+      ('lnbitsAdminKey', 'LNBits Admin Key', 'text', 'string', 'wallets', false, true, null)
+    ON CONFLICT (name) DO NOTHING;
+    
+    -- Add LNBits as a valid wallet option for Lightning Network
+    INSERT INTO user_config (name, display_name, type, data_type, config_type, enabled, secret, options)
+    VALUES 
+      ('LN_wallet', 'Lightning Network Wallet', 'text', 'string', 'wallets', true, false, 
+       '[{"code": "lnbits", "display": "LNBits"}, {"code": "galoy", "display": "Galoy (Blink)"}, {"code": "bitcoind", "display": "Bitcoin Core"}]')
+    ON CONFLICT (name) 
+    DO UPDATE SET options = EXCLUDED.options
+    WHERE user_config.options NOT LIKE '%lnbits%';
+  `
+
+  db.multi(sql, next)
+}
+
+exports.down = function (next) {
+  const sql = `
+    DELETE FROM user_config 
+    WHERE name IN ('lnbitsEndpoint', 'lnbitsAdminKey');
+    
+    -- Remove LNBits from wallet options
+    UPDATE user_config 
+    SET options = REPLACE(options, ', {"code": "lnbits", "display": "LNBits"}', '')
+    WHERE name = 'LN_wallet';
+  `
+
+  db.multi(sql, next)
+}

packages/server/tests/unit/test_lnbits_plugin.js

@@ -0,0 +1,257 @@
+const test = require('tape')
+const sinon = require('sinon')
+const axios = require('axios')
+const BN = require('../../lib/bn')
+
+// Mock the module before requiring the plugin
+const lnbits = require('../../lib/plugins/wallet/lnbits/lnbits')
+
+test('LNBits plugin - configuration validation', t => {
+  t.plan(3)
+  
+  const validAccount = {
+    endpoint: 'https://demo.lnbits.com',
+    adminKey: 'test_admin_key_123'
+  }
+  
+  const invalidAccount1 = {
+    endpoint: 'https://demo.lnbits.com'
+    // Missing adminKey
+  }
+  
+  const invalidAccount2 = {
+    adminKey: 'test_admin_key_123'
+    // Missing endpoint
+  }
+  
+  // Valid config should not throw
+  t.doesNotThrow(() => {
+    lnbits.balance(validAccount, 'LN').catch(() => {})
+  }, 'Valid configuration passes validation')
+  
+  // Missing adminKey should throw
+  lnbits.balance(invalidAccount1, 'LN').catch(err => {
+    t.ok(err.message.includes('LNBits configuration missing: adminKey'), 
+      'Missing adminKey throws appropriate error')
+  })
+  
+  // Missing endpoint should throw
+  lnbits.balance(invalidAccount2, 'LN').catch(err => {
+    t.ok(err.message.includes('LNBits configuration missing: endpoint'),
+      'Missing endpoint throws appropriate error')
+  })
+})
+
+test('LNBits plugin - crypto code validation', t => {
+  t.plan(2)
+  
+  const account = {
+    endpoint: 'https://demo.lnbits.com',
+    adminKey: 'test_admin_key'
+  }
+  
+  // Valid crypto code
+  lnbits.balance(account, 'LN').catch(() => {
+    // Expected to fail at API call, not validation
+  })
+  t.pass('LN crypto code is accepted')
+  
+  // Invalid crypto code
+  lnbits.balance(account, 'BTC').catch(err => {
+    t.ok(err.message.includes('Unsupported crypto'),
+      'Invalid crypto code throws appropriate error')
+  })
+})
+
+test('LNBits plugin - invoice detection', t => {
+  t.plan(6)
+  
+  // Valid Lightning invoices
+  t.ok(lnbits.isLnInvoice('lnbc100n1p0example'), 'Detects mainnet Lightning invoice')
+  t.ok(lnbits.isLnInvoice('lntb100n1p0example'), 'Detects testnet Lightning invoice')
+  t.ok(lnbits.isLnInvoice('lnbcrt100n1p0example'), 'Detects regtest Lightning invoice')
+  
+  // Invalid invoices
+  t.notOk(lnbits.isLnInvoice('bc1qexample'), 'Rejects Bitcoin address')
+  t.notOk(lnbits.isLnInvoice('lnurl1234'), 'Rejects LNURL')
+  t.notOk(lnbits.isLnInvoice(''), 'Rejects empty string')
+})
+
+test('LNBits plugin - LNURL detection', t => {
+  t.plan(3)
+  
+  t.ok(lnbits.isLnurl('lnurl1dp68gurn8ghj7um9'), 'Detects LNURL')
+  t.notOk(lnbits.isLnurl('lnbc100n1p0example'), 'Rejects Lightning invoice')
+  t.notOk(lnbits.isLnurl(''), 'Rejects empty string')
+})
+
+test('LNBits plugin - network detection', t => {
+  t.plan(4)
+  
+  const mainnetAccount = {
+    endpoint: 'https://lnbits.com',
+    adminKey: 'test'
+  }
+  
+  const testnetAccount = {
+    endpoint: 'https://testnet.lnbits.com',
+    adminKey: 'test'
+  }
+  
+  const regtestAccount = {
+    endpoint: 'http://localhost:5000',
+    adminKey: 'test'
+  }
+  
+  const testAccount = {
+    endpoint: 'https://test.lnbits.com',
+    adminKey: 'test'
+  }
+  
+  t.equal(lnbits.cryptoNetwork(mainnetAccount, 'LN'), 'main', 'Detects mainnet')
+  t.equal(lnbits.cryptoNetwork(testnetAccount, 'LN'), 'test', 'Detects testnet')
+  t.equal(lnbits.cryptoNetwork(regtestAccount, 'LN'), 'regtest', 'Detects regtest/local')
+  t.equal(lnbits.cryptoNetwork(testAccount, 'LN'), 'test', 'Detects test environment')
+})
+
+test('LNBits plugin - newAddress creates invoice', async t => {
+  t.plan(3)
+  
+  const account = {
+    endpoint: 'https://demo.lnbits.com',
+    adminKey: 'test_admin_key'
+  }
+  
+  const tx = {
+    cryptoAtoms: new BN('100000'),
+    cryptoCode: 'LN'
+  }
+  
+  const info = {
+    cryptoCode: 'LN'
+  }
+  
+  // Mock the axios request
+  const stub = sinon.stub(axios, 'request')
+  stub.resolves({
+    data: {
+      payment_request: 'lnbc1000n1p0example',
+      payment_hash: 'abc123'
+    }
+  })
+  
+  try {
+    const invoice = await lnbits.newAddress(account, info, tx)
+    
+    t.equal(invoice, 'lnbc1000n1p0example', 'Returns Lightning invoice')
+    t.ok(stub.calledOnce, 'Makes one API request')
+    
+    const callArgs = stub.firstCall.args[0]
+    t.equal(callArgs.data.amount, 100000, 'Sends correct amount in satoshis')
+  } catch (err) {
+    t.fail(`Unexpected error: ${err.message}`)
+  } finally {
+    stub.restore()
+  }
+})
+
+test('LNBits plugin - balance returns BN', async t => {
+  t.plan(2)
+  
+  const account = {
+    endpoint: 'https://demo.lnbits.com',
+    adminKey: 'test_admin_key'
+  }
+  
+  // Mock the axios request
+  const stub = sinon.stub(axios, 'request')
+  stub.resolves({
+    data: {
+      balance: 500000000, // 500000 sats in millisats
+      name: 'Test Wallet'
+    }
+  })
+  
+  try {
+    const balance = await lnbits.balance(account, 'LN')
+    
+    t.ok(balance instanceof BN, 'Returns BigNumber instance')
+    t.equal(balance.toString(), '500000', 'Converts millisats to sats correctly')
+  } catch (err) {
+    t.fail(`Unexpected error: ${err.message}`)
+  } finally {
+    stub.restore()
+  }
+})
+
+test('LNBits plugin - getStatus checks payment', async t => {
+  t.plan(3)
+  
+  const account = {
+    endpoint: 'https://demo.lnbits.com',
+    adminKey: 'test_admin_key'
+  }
+  
+  const paidTx = {
+    toAddress: 'lnbc1000n1p3q7vlpp5example',
+    cryptoCode: 'LN'
+  }
+  
+  // Mock bolt11 decode
+  const bolt11 = require('bolt11')
+  const decodeStub = sinon.stub(bolt11, 'decode')
+  decodeStub.returns({
+    tagsObject: {
+      payment_hash: 'abc123'
+    }
+  })
+  
+  // Mock axios for paid invoice
+  const axiosStub = sinon.stub(axios, 'request')
+  axiosStub.onFirstCall().resolves({
+    data: {
+      paid: true,
+      amount: 1000
+    }
+  })
+  
+  try {
+    const status = await lnbits.getStatus(account, paidTx)
+    t.equal(status.status, 'confirmed', 'Returns confirmed for paid invoice')
+  } catch (err) {
+    t.fail(`Unexpected error: ${err.message}`)
+  }
+  
+  // Test pending invoice
+  axiosStub.onSecondCall().resolves({
+    data: {
+      paid: false,
+      pending: true
+    }
+  })
+  
+  try {
+    const status = await lnbits.getStatus(account, paidTx)
+    t.equal(status.status, 'pending', 'Returns pending for unpaid but pending invoice')
+  } catch (err) {
+    t.fail(`Unexpected error: ${err.message}`)
+  }
+  
+  // Test not found invoice
+  axiosStub.onThirdCall().rejects({
+    response: {
+      status: 404,
+      data: { detail: 'Payment not found' }
+    }
+  })
+  
+  try {
+    const status = await lnbits.getStatus(account, paidTx)
+    t.equal(status.status, 'notSeen', 'Returns notSeen for not found invoice')
+  } catch (err) {
+    t.fail(`Unexpected error: ${err.message}`)
+  } finally {
+    decodeStub.restore()
+    axiosStub.restore()
+  }
+})

packages/server/tools/build-dev-env.js

@@ -1,38 +1,76 @@
+#!/usr/bin/env node
+
 const fs = require('fs')
 const path = require('path')
 
-const setEnvVariable = require('./set-env-var')
+const envPath = path.resolve(__dirname, '../.env')
+const sampleEnvPath = path.resolve(__dirname, '../.sample.env')
 
-fs.copyFileSync(
-  path.resolve(__dirname, '../.sample.env'),
-  path.resolve(__dirname, '../.env'),
-)
+// Check if .env already exists
+if (fs.existsSync(envPath)) {
+  console.log('.env file already exists. To rebuild, delete it first.')
+  process.exit(0)
+}
 
-setEnvVariable('NODE_ENV', 'development')
+// Copy sample env
+const sampleContent = fs.readFileSync(sampleEnvPath, 'utf8')
 
-setEnvVariable('POSTGRES_USER', 'postgres')
-setEnvVariable('POSTGRES_PASSWORD', 'postgres123')
-setEnvVariable('POSTGRES_HOST', 'localhost')
-setEnvVariable('POSTGRES_PORT', '5432')
-setEnvVariable('POSTGRES_DB', 'lamassu')
+// Development defaults
+const devDefaults = {
+  NODE_ENV: 'development',
+  
+  // Database
+  POSTGRES_USER: 'lamassu',
+  POSTGRES_PASSWORD: 'lamassu',
+  POSTGRES_HOST: 'localhost',
+  POSTGRES_PORT: '5432',
+  POSTGRES_DB: 'lamassu',
+  
+  // Paths
+  CA_PATH: path.resolve(__dirname, '../Lamassu_CA.pem'),
+  CERT_PATH: path.resolve(__dirname, '../../../certs/Lamassu_LS.pem'),
+  KEY_PATH: path.resolve(__dirname, '../../../certs/Lamassu_LS.key'),
+  MNEMONIC_PATH: path.resolve(__dirname, '../../../mnemonic.txt'),
+  
+  // Directories
+  BLOCKCHAIN_DIR: path.resolve(__dirname, '../../../blockchain'),
+  OFAC_DATA_DIR: path.resolve(__dirname, '../../../ofac'),
+  ID_PHOTO_CARD_DIR: path.resolve(__dirname, '../../../photos/idcard'),
+  FRONT_CAMERA_DIR: path.resolve(__dirname, '../../../photos/front'),
+  OPERATOR_DATA_DIR: path.resolve(__dirname, '../../../operator-data'),
+  
+  // Misc
+  HOSTNAME: 'localhost',
+  LOG_LEVEL: 'debug',
+  
+  // Bitcoin (for development, use remote node to avoid full sync)
+  BTC_NODE_LOCATION: 'remote',
+  BTC_WALLET_LOCATION: 'local',
+  BTC_NODE_HOST: 'blockstream.info',
+  BTC_NODE_PORT: '8333',
+  
+  // LNBits development defaults
+  LNBITS_ENDPOINT: 'https://legend.lnbits.com',
+  LNBITS_ADMIN_KEY: ''  // User needs to set this
+}
 
-setEnvVariable('CA_PATH', `${process.env.PWD}/certs/Lamassu_OP_Root_CA.pem`)
-setEnvVariable('CERT_PATH', `${process.env.PWD}/certs/Lamassu_OP.pem`)
-setEnvVariable('KEY_PATH', `${process.env.PWD}/certs/Lamassu_OP.key`)
+// Build .env content
+let envContent = sampleContent
 
-setEnvVariable(
-  'MNEMONIC_PATH',
-  `${process.env.PWD}/.lamassu/mnemonics/mnemonic.txt`,
-)
+// Replace empty values with dev defaults
+Object.keys(devDefaults).forEach(key => {
+  const regex = new RegExp(`^${key}=.*$`, 'gm')
+  envContent = envContent.replace(regex, `${key}=${devDefaults[key]}`)
+})
 
-setEnvVariable('BLOCKCHAIN_DIR', `${process.env.PWD}/blockchains`)
-setEnvVariable('OFAC_DATA_DIR', `${process.env.PWD}/.lamassu/ofac`)
-setEnvVariable('ID_PHOTO_CARD_DIR', `${process.env.PWD}/.lamassu/idphotocard`)
-setEnvVariable('FRONT_CAMERA_DIR', `${process.env.PWD}/.lamassu/frontcamera`)
-setEnvVariable('OPERATOR_DATA_DIR', `${process.env.PWD}/.lamassu/operatordata`)
+// Write .env file
+fs.writeFileSync(envPath, envContent)
 
-setEnvVariable('BTC_NODE_LOCATION', 'remote')
-setEnvVariable('BTC_WALLET_LOCATION', 'local')
-
-setEnvVariable('HOSTNAME', 'localhost')
-setEnvVariable('LOG_LEVEL', 'debug')
+console.log('Development .env file created with defaults.')
+console.log('IMPORTANT: You still need to:')
+console.log('  1. Generate certificates using: bash tools/cert-gen.sh')
+console.log('  2. Create a mnemonic file at: ../../../mnemonic.txt')
+console.log('  3. Set up PostgreSQL database')
+console.log('  4. Configure LNBits admin key if using Lightning')
+console.log('')
+console.log('Run migrations with: node bin/lamassu-migrate')