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feat: implement x402 payment evidence pipeline#14

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Favourof wants to merge 7 commits into
emrekayat:mainfrom
Favourof:issue-3-payment-evidence
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feat: implement x402 payment evidence pipeline#14
Favourof wants to merge 7 commits into
emrekayat:mainfrom
Favourof:issue-3-payment-evidence

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@Favourof

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Description

Closes #3

This PR implements a robust two-phase payment evidence pipeline. Instead of blindly trusting raw HTTP headers to mark requests as settled, the system now enforces an authoritative settlement confirmation step through @x402/core Resource Server lifecycle hooks.

What's Changed

  • Unified Evidence Types: Replaced raw transactionHash and paymentResponseHeader with a structured PaymentEvidence model in @query402/shared that tracks exact payment states: demo-paid, verified, settled, and failed.
  • Database State Management: Added state transition methods (updatePaymentAttemptEvidence and updateUsageEventEvidence) in the persistence layer.
  • Secure Verification Pipeline:
    • Protected API routes now record initial requests as verified (or demo-paid) rather than settled.
    • Implemented onAfterSettle hooks in x402.ts. The backend now waits for authoritative facilitator confirmation and updates the database state to settled using the specific transport context identifiers.
  • Frontend Analytics Updates: The Control Deck analytics UI now clearly reflects the real-time settlement status of each request with explicit state badges.
  • Test Coverage: Added node:test suite for the x402.ts settlement pipeline to ensure correctness across state transitions.

Verification

  • Verified unit tests pass (npm run test in apps/api)
  • Verified npm run typecheck across the entire monorepo
  • Verified manual flows (Demo mode flags as demo-paid, valid payments flag as settled upon hook execution)

@vercel

vercel Bot commented Jun 23, 2026

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@Favourof is attempting to deploy a commit to the emrekayat's projects Team on Vercel.

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@drips-wave

drips-wave Bot commented Jun 23, 2026

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@Favourof Great news! 🎉 Based on an automated assessment of this PR, the linked Wave issue(s) no longer count against your application limits.

You can now already apply to more issues while waiting for a review of this PR. Keep up the great work! 🚀

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@emrekayat

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Thanks for the contribution. I reviewed this against issue #3 and did not merge it yet because the settlement correlation is not reliable: the x402 onAfterSettle hook tries to read x-payment-attempt-id / x-payment-trace-id from transport response headers before the protected route creates and sets those IDs, so authoritative settlement updates can remain unlinked and payment evidence stays at verified. There is also a demo-mode edge case where a payment-response header alone can pass the demo middleware but be persisted as verified rather than demo-paid. Please rework the evidence pipeline so the verified attempt is created/correlated before settlement and forged/demo headers cannot create trusted evidence.

@Favourof

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@emrekayat okay

@Favourof

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@emrekayat, I've just pushed a fix that completely addresses both issues.

@emrekayat

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Thanks for the update. I cannot merge this yet because the required verification is still failing.

Current blockers:

  • npm run typecheck fails in @query402/api:
    • apps/api/src/lib/x402.ts:133 and :140: transportContext does not exist on VerifyResultContext.
  • npm run typecheck also fails in @query402/web:
    • apps/web/src/pages/ControlDeckPage.tsx:326: item implicitly has an any type.
    • apps/web/src/types.ts:9: QueryResult cannot be found.
  • npm run build --workspace @query402/api fails on the same transportContext type errors.

npm run test --workspace @query402/api does pass, but please fix the type/build errors before this can be merged.

@Favourof

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@emrekayat fixed

@emrekayat

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Thanks for the update. The latest commit now passes local verification on my side:

  • npm run typecheck
  • npm run test --workspace @query402/api
  • npm run build --workspace @query402/api

I still cannot merge this yet because issue #3 is not fully satisfied. The settlement hook updates only the payment attempt (apps/api/src/lib/x402.ts:159-174) and never updates the matching usage event, even though updateUsageEventEvidence exists. Since persistUsageEvent copies paymentAttempt.evidence at request time (apps/api/src/routes/protected.ts:29-37), analytics/recent usage can remain verified instead of settled, so the UI/API still do not reliably distinguish settled on-chain volume from non-settled usage.

There is also no failed settlement persistence yet: onSettleFailure currently leaves the attempt as verified (apps/api/src/lib/x402.ts:177-179), but the issue asks for failed payment evidence and tests for failed settlement.

Please wire settlement/failure updates through to persisted usage analytics as well, and add tests that exercise the actual x402 lifecycle behavior rather than manually calling both persistence update helpers. Once those paths are covered, I can re-review for merge.

@Favourof

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Okay

@Favourof

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@emrekayat
This PR finally links up x402 payment hooks directly with the usage analytics storage. Before this, the UI and API would just show the initial "verified" state and miss out on the final settlement status. Now, whenever a payment settles on-chain or fails, those updates flow right through to the recent usage analytics!

@emrekayat

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Re-reviewed this after the latest update. I still cannot merge it yet.

Current blockers:

  • The PR is currently not mergeable against main. GitHub reports conflicts, and a local merge confirms conflicts in apps/api/package.json, apps/api/src/lib/persistence.ts, and package-lock.json. Please rebase/merge the latest main first.
  • The PR includes generated/persisted runtime data at apps/api/apps/api/data/db.json. This should not be committed; it contains test/runtime payment and usage records and would pollute analytics state.
  • npm run test --workspace @query402/api fails in a fresh checkout unless X402_PAY_TO_ADDRESS is manually provided. The test suite should set its own sanitized test env/fixtures so the claimed verification command works reproducibly.
  • The added tests only cover settlement and settlement failure updates. Issue Record verified x402 payment evidence instead of trusting response headers #3 also asks for malformed headers, failed verification, demo flow, price mismatch, provider/evidence mismatch, and proof that forged headers cannot create settled analytics entries.
  • The UI still derives the current result evidence from paymentResponseHeader (ControlDeckPage.tsx) instead of from a typed evidence object, so the immediate response display does not fully reflect the new evidence model.

Local verification on the PR branch:

  • npm run typecheck passes.
  • npm run build --workspace @query402/api passes.
  • npm run test --workspace @query402/api only passes after setting X402_PAY_TO_ADDRESS; without that env it fails during config loading.

Please rebase on main, remove the committed db file, make the API tests self-contained, and add coverage for the remaining issue #3 acceptance criteria before this can be merged.

@Favourof

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@emrekayat check again

@emrekayat

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Thanks for the work here. I reviewed this against #3 again, but I cannot merge this PR in its current shape.

The issue has now been resolved on main through #18, which keeps payment evidence typed and prevents arbitrary payment-response strings from being treated as settled transaction hashes.

A few blockers I saw in this PR:

  • It rewrites the shared PaymentAttempt / UsageEvent model broadly and would conflict with the landed evidence pipeline.
  • Demo and sponsored paths still build settlement-like evidence from local headers/placeholders in some flows, which does not satisfy the trust-boundary requirement.
  • The PR includes unrelated generated/local data changes (apps/api/apps/api/data/db.json) and lockfile churn.

Since #3 is covered by #18, please rebase/retarget only if you want to propose a smaller follow-up on top of the new evidence pipeline.

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Record verified x402 payment evidence instead of trusting response headers

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