diff --git a/side-node/src/bitcoin/client.rs b/side-node/src/bitcoin/client.rs
index 730d106..b6a0ec1 100644
--- a/side-node/src/bitcoin/client.rs
+++ b/side-node/src/bitcoin/client.rs
@@ -1,7 +1,7 @@
 use std::fs;
 
 use bdk::{
-    bitcoin::{psbt::PartiallySignedTransaction, Network, Transaction},
+    bitcoin::{psbt::PartiallySignedTransaction, secp256k1::PublicKey, Network, Transaction},
     blockchain::EsploraBlockchain,
     database::MemoryDatabase,
     keys::{bip39::Mnemonic, DerivableKey, ExtendedKey},
@@ -17,6 +17,7 @@ pub struct BitcoinClient {
     pub(crate) blockchain: bdk::blockchain::EsploraBlockchain,
     name: String,
     pub(crate) wallet: Wallet<MemoryDatabase>,
+    pub(crate) external_public_key: PublicKey,
 }
 
 impl BitcoinClient {
@@ -91,22 +92,27 @@ impl BitcoinClient {
             .into_xprv(Network::Signet)
             .expect("couldn't turn xkey into xprv");
 
-        let external_descriptor = Bip84(xprv, KeychainKind::External);
+        let secp = bdk::bitcoin::secp256k1::Secp256k1::new();
+
+        let external_descriptor1 = Bip84(xprv.clone(), KeychainKind::External);
+        let external_descriptor2 = Bip84(xprv, KeychainKind::External);
         let internal_descriptor = Some(Bip84(xprv, KeychainKind::Internal));
 
         let wallet = Wallet::new(
-            external_descriptor,
+            external_descriptor1,
             internal_descriptor,
             network,
             MemoryDatabase::default(),
         )?;
 
         let blockchain = EsploraBlockchain::new("https://mutinynet.com/api", 20);
+        let external_public_key = external_descriptor2.0.private_key.public_key(&secp);
 
         let esplora = BitcoinClient {
             name: name.to_string(),
             wallet,
             blockchain,
+            external_public_key,
         };
 
         Ok(esplora)
diff --git a/side-node/src/bitcoin/driver/htlc.rs b/side-node/src/bitcoin/driver/htlc.rs
index 5874ed4..848ebb1 100644
--- a/side-node/src/bitcoin/driver/htlc.rs
+++ b/side-node/src/bitcoin/driver/htlc.rs
@@ -1,15 +1,33 @@
-use crate::bitcoin::driver;
-use bdk::wallet::AddressIndex;
+use crate::bitcoin::{self, driver};
+use bdk::wallet::AddressIndex::New;
 use bdk::SignOptions;
 
 pub(crate) async fn run() -> anyhow::Result<()> {
     tracing::info!("starting htlc flow");
     let (dave, sammy) = driver::setup().await?;
+    tracing::info!("syncing dave wallet");
+    let _ = dave.sync();
+    tracing::info!("syncing samy wallet");
+    let _ = sammy.sync();
 
     // format a new commitment transaction like in Lightning
     let mut commitment_builder = dave.wallet.build_tx();
     let amount = 500;
-    let recipient = sammy.wallet.get_address(AddressIndex::New)?.script_pubkey();
+    let recipient = sammy.wallet.get_address(New)?.script_pubkey();
+
+    // Feed it 500 sats, a redeem identity, a hashlock, a refund timelock, and a refund identity
+    //
+    let htlc = bitcoin::htlc::Htlc::new(
+        amount,
+        dave.external_public_key,
+        "ffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffff".to_string(),
+        100,
+        sammy.external_public_key,
+    );
+
+    let htlc_descriptor = htlc.to_miniscript_descriptor();
+    tracing::info!("descriptor: {}", htlc_descriptor);
+
     commitment_builder.add_recipient(recipient, amount);
     commitment_builder.enable_rbf();
     let (psbt, _) = commitment_builder
diff --git a/side-node/src/bitcoin/driver/transfer_policy.rs b/side-node/src/bitcoin/driver/transfer_policy.rs
index cc3cb1d..0b1229c 100644
--- a/side-node/src/bitcoin/driver/transfer_policy.rs
+++ b/side-node/src/bitcoin/driver/transfer_policy.rs
@@ -1,14 +1,26 @@
+use std::str::FromStr;
+
+use bdk::miniscript::policy;
+
 use crate::bitcoin;
 
 pub(crate) async fn run() -> anyhow::Result<()> {
-    let (dave, sammy) = bitcoin::driver::setup().await?;
+    let (dave, _sammy) = bitcoin::driver::setup().await?;
 
     tracing::info!("starting transfer policy flow");
 
-    let policy = format!(
-        "pk({:?})",
-        dave.wallet.get_address(bdk::wallet::AddressIndex::New)
-    );
+    let policy_str = format!("sh({:?})", dave.external_public_key);
+
+    let policy = policy::Concrete::<bdk::bitcoin::PublicKey>::from_str(&policy_str)
+        .expect("policy compilation failed")
+        .to_owned();
+
+    // let descriptor = Wsh::new(policy)
+    //     .compile()
+    //     .expect("descriptor compilation failed");
+
+    // let policy = policy::Concrete::<bdk::bitcoin::PublicKey>::from_str(&policy_str)
+    //     .expect("policy compilation failed");
 
     tracing::info!("policy: {}", policy);
     Ok(())
diff --git a/side-node/src/bitcoin/htlc.rs b/side-node/src/bitcoin/htlc.rs
index 6a847c0..30dc9b5 100644
--- a/side-node/src/bitcoin/htlc.rs
+++ b/side-node/src/bitcoin/htlc.rs
@@ -1,7 +1,7 @@
 use std::str::FromStr;
 
 use bdk::{
-    bitcoin::Address,
+    bitcoin::secp256k1::PublicKey,
     miniscript::{descriptor::Wsh, policy::Concrete},
 };
 
@@ -12,20 +12,20 @@ use bdk::{
 /// Alternately, if the refund timelock expires, the value can be refunded to the refund_identity.
 pub(crate) struct Htlc {
     value: u64,
-    redeem_identity: Address,
+    redeem_identity: PublicKey,
     hashlock: String,
     refund_timelock: u64,
-    refund_indentiy: Address,
+    refund_indentiy: PublicKey,
 }
 
 impl Htlc {
     /// Create a new HTLC.
     pub(crate) fn new(
         value: u64,
-        redeem_identity: Address,
+        redeem_identity: PublicKey,
         hashlock: String,
         refund_timelock: u64,
-        refund_indentiy: Address,
+        refund_indentiy: PublicKey,
     ) -> Self {
         Self {
             value,