refactor: use system faucet and vaults to supply accounts from genesis

Co-authored-by: Copilot <copilot@github.com>

Cargo.lock

@@ -3959,6 +3959,7 @@ dependencies = [
  "token_core",
  "tokio",
  "url",
+ "vault_core",
  "wallet",
  "wallet-ffi",
 ]
@@ -7062,6 +7063,7 @@ dependencies = [
  "serde",
  "token_core",
  "token_program",
+ "vault_core",
 ]
 
 [[package]]
@@ -8416,7 +8418,6 @@ name = "sequencer_core"
 version = "0.1.0"
 dependencies = [
  "anyhow",
- "authenticated_transfer_core",
  "borsh",
  "bytesize",
  "chrono",
@@ -8440,6 +8441,7 @@ dependencies = [
  "testnet_initial_state",
  "tokio",
  "url",
+ "vault_core",
 ]
 
 [[package]]
@@ -10077,6 +10079,15 @@ version = "0.1.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "ba73ea9cf16a25df0c8caa16c51acb937d5712a8429db78a3ee29d5dcacd3a65"
 
+[[package]]
+name = "vault_core"
+version = "0.1.0"
+dependencies = [
+ "nssa_core",
+ "risc0-zkvm",
+ "serde",
+]
+
 [[package]]
 name = "vcpkg"
 version = "0.2.15"

Cargo.toml

@@ -21,6 +21,7 @@ members = [
   "programs/associated_token_account/core",
   "programs/associated_token_account",
   "programs/authenticated_transfer/core",
+  "programs/vault/core",
   "sequencer/core",
   "sequencer/service",
   "sequencer/service/protocol",
@@ -67,6 +68,7 @@ amm_program = { path = "programs/amm" }
 ata_core = { path = "programs/associated_token_account/core" }
 ata_program = { path = "programs/associated_token_account" }
 authenticated_transfer_core = { path = "programs/authenticated_transfer/core" }
+vault_core = { path = "programs/vault/core" }
 test_program_methods = { path = "test_program_methods" }
 testnet_initial_state = { path = "testnet_initial_state" }
 

common/src/transaction.rs

@@ -67,7 +67,8 @@ impl NSSATransaction {
     }
 
     /// Validates the transaction against the current state and returns the resulting diff
-    /// without applying it. Rejects transactions that modify clock system accounts.
+    /// without applying it. Rejects transactions that modify clock system accounts and
+    /// rejects unsafe modifications of the system faucet account.
     pub fn validate_on_state(
         &self,
         state: &V03State,
@@ -98,6 +99,36 @@ impl NSSATransaction {
             ));
         }
 
+        let faucet_account_id = nssa::SYSTEM_FAUCET_ACCOUNT_ID;
+        if let Some(post_faucet) = public_diff.get(&faucet_account_id) {
+            let pre_faucet = state.get_account_by_id(faucet_account_id);
+
+            let nssa::Account {
+                program_owner: post_program_owner,
+                data: post_data,
+                nonce: post_nonce,
+                balance: post_balance,
+            } = post_faucet;
+
+            let nssa::Account {
+                program_owner: pre_program_owner,
+                data: pre_data,
+                nonce: pre_nonce,
+                balance: pre_balance,
+            } = pre_faucet;
+
+            let faucet_change_is_allowed = *post_program_owner == pre_program_owner
+                && *post_data == pre_data
+                && *post_nonce == pre_nonce
+                && *post_balance >= pre_balance;
+
+            if !faucet_change_is_allowed {
+                return Err(nssa::error::NssaError::InvalidInput(
+                    "Transaction modifies system faucet account".into(),
+                ));
+            }
+        }
+
         Ok(diff)
     }
 

configs/docker-all-in-one/sequencer_config.json

@@ -18,13 +18,13 @@
     "indexer_rpc_url": "ws://indexer_service:8779",
     "genesis": [
         {
-            "supply_public_account": {
+            "supply_account": {
                 "account_id": "6iArKUXxhUJqS7kCaPNhwMWt3ro71PDyBj7jwAyE2VQV",
                 "balance": 10000
             }
         },
         {
-            "supply_public_account": {
+            "supply_account": {
                 "account_id": "7wHg9sbJwc6h3NP1S9bekfAzB8CHifEcxKswCKUt3YQo",
                 "balance": 20000
             }

indexer/core/src/block_store.rs

@@ -8,7 +8,7 @@ use common::{
 use log::info;
 use logos_blockchain_core::{header::HeaderId, mantle::ops::channel::MsgId};
 use logos_blockchain_zone_sdk::Slot;
-use nssa::{Account, AccountId, V03State, ValidatedStateDiff};
+use nssa::{Account, AccountId, V03State};
 use nssa_core::BlockId;
 use storage::indexer::RocksDBIO;
 use tokio::sync::RwLock;
@@ -160,12 +160,13 @@ impl IndexerStore {
                             anyhow::bail!("Genesis block should contain only public transactions")
                         }
                     };
-                    let state_diff = ValidatedStateDiff::from_public_genesis_transaction(
-                        genesis_tx,
-                        &state_guard,
-                    )
-                    .context("Failed to create state diff from genesis transaction")?;
-                    state_guard.apply_state_diff(state_diff);
+                    state_guard
+                        .transition_from_public_transaction(
+                            genesis_tx,
+                            block.header.block_id,
+                            block.header.timestamp,
+                        )
+                        .context("Failed to execute genesis public transaction")?;
                 } else {
                     transaction
                         .clone()
@@ -202,39 +203,11 @@ impl IndexerStore {
 #[cfg(test)]
 mod tests {
     use common::{HashType, block::HashableBlockData};
-    use nssa::{AccountId, CLOCK_01_PROGRAM_ACCOUNT_ID, PublicKey, PublicTransaction};
     use tempfile::tempdir;
+    use testnet_initial_state::initial_pub_accounts_private_keys;
 
     use super::*;
 
-    fn acc1_sign_key() -> nssa::PrivateKey {
-        nssa::PrivateKey::try_new([1; 32]).unwrap()
-    }
-
-    fn acc2_sign_key() -> nssa::PrivateKey {
-        nssa::PrivateKey::try_new([2; 32]).unwrap()
-    }
-
-    fn acc1() -> AccountId {
-        AccountId::from(&PublicKey::new_from_private_key(&acc1_sign_key()))
-    }
-
-    fn acc2() -> AccountId {
-        AccountId::from(&PublicKey::new_from_private_key(&acc2_sign_key()))
-    }
-
-    fn genesis_mint_tx(account: AccountId, balance: u128) -> NSSATransaction {
-        let message = nssa::public_transaction::Message::try_new(
-            nssa::program::Program::authenticated_transfer_program().id(),
-            vec![account, CLOCK_01_PROGRAM_ACCOUNT_ID],
-            vec![],
-            authenticated_transfer_core::Instruction::Mint { amount: balance },
-        )
-        .unwrap();
-        let witness_set = nssa::public_transaction::WitnessSet::for_message(&message, &[]);
-        PublicTransaction::new(message, witness_set).into()
-    }
-
     #[test]
     fn correct_startup() {
         let home = tempdir().unwrap();
@@ -252,19 +225,18 @@ mod tests {
 
         let storage = IndexerStore::open_db(home.as_ref()).unwrap();
 
-        let from = acc1();
-        let to = acc2();
-        let sign_key = acc1_sign_key();
+        let initial_accounts = initial_pub_accounts_private_keys();
+        let from = initial_accounts[0].account_id;
+        let to = initial_accounts[1].account_id;
+        let sign_key = initial_accounts[0].pub_sign_key.clone();
 
         // Submit genesis block
         let clock_tx = NSSATransaction::Public(clock_invocation(0));
-        let supply_from_tx = genesis_mint_tx(from, 10000);
-        let supply_to_tx = genesis_mint_tx(to, 20000);
         let genesis_block_data = HashableBlockData {
             block_id: 1,
             prev_block_hash: HashType::default(),
             timestamp: 0,
-            transactions: vec![supply_from_tx, supply_to_tx, clock_tx],
+            transactions: vec![clock_tx],
         };
         let genesis_block = genesis_block_data.into_pending_block(
             &common::test_utils::sequencer_sign_key_for_testing(),
@@ -276,30 +248,29 @@ mod tests {
             .await
             .unwrap();
 
-        for i in 2..10 {
+        for i in 0..10 {
             let tx = common::test_utils::create_transaction_native_token_transfer(
-                from,
-                i - 2,
-                to,
-                10,
-                &sign_key,
+                from, i, to, 10, &sign_key,
             );
-            let block_id = u64::try_from(i).unwrap();
+            let block_id = u64::try_from(i + 1).unwrap();
 
             let next_block = common::test_utils::produce_dummy_block(block_id, prev_hash, vec![tx]);
             prev_hash = Some(next_block.header.hash);
 
             storage
-                .put_block(next_block, HeaderId::from([u8::try_from(i).unwrap(); 32]))
+                .put_block(
+                    next_block,
+                    HeaderId::from([u8::try_from(i + 1).unwrap(); 32]),
+                )
                 .await
                 .unwrap();
         }
 
-        let acc1_val = storage.account_current_state(&acc1()).await.unwrap();
-        let acc2_val = storage.account_current_state(&acc2()).await.unwrap();
+        let acc1_val = storage.account_current_state(&from).await.unwrap();
+        let acc2_val = storage.account_current_state(&to).await.unwrap();
 
-        assert_eq!(acc1_val.balance, 9920);
-        assert_eq!(acc2_val.balance, 20080);
+        assert_eq!(acc1_val.balance, 9900);
+        assert_eq!(acc2_val.balance, 20100);
     }
 
     #[tokio::test]
@@ -310,45 +281,45 @@ mod tests {
 
         let mut prev_hash = None;
 
-        let from = acc1();
-        let to = acc2();
-        let sign_key = acc1_sign_key();
+        let initial_accounts = initial_pub_accounts_private_keys();
+        let from = initial_accounts[0].account_id;
+        let to = initial_accounts[1].account_id;
+        let sign_key = initial_accounts[0].pub_sign_key.clone();
 
-        for i in 2..10 {
+        for i in 0..10 {
             let tx = common::test_utils::create_transaction_native_token_transfer(
-                from,
-                i - 2,
-                to,
-                10,
-                &sign_key,
+                from, i, to, 10, &sign_key,
             );
-            let block_id = u64::try_from(i).unwrap();
+            let block_id = u64::try_from(i + 1).unwrap();
 
             let next_block = common::test_utils::produce_dummy_block(block_id, prev_hash, vec![tx]);
             prev_hash = Some(next_block.header.hash);
 
             storage
-                .put_block(next_block, HeaderId::from([u8::try_from(i).unwrap(); 32]))
+                .put_block(
+                    next_block,
+                    HeaderId::from([u8::try_from(i + 1).unwrap(); 32]),
+                )
                 .await
                 .unwrap();
         }
 
         // Genesis block: no transfers applied yet.
-        let acc1_at_1 = storage.account_state_at_block(&acc1(), 1).unwrap();
-        let acc2_at_1 = storage.account_state_at_block(&acc2(), 1).unwrap();
-        assert_eq!(acc1_at_1.balance, 10000);
-        assert_eq!(acc2_at_1.balance, 20000);
+        let acc1_at_1 = storage.account_state_at_block(&from, 1).unwrap();
+        let acc2_at_1 = storage.account_state_at_block(&to, 1).unwrap();
+        assert_eq!(acc1_at_1.balance, 9990);
+        assert_eq!(acc2_at_1.balance, 20010);
 
         // After block 5: 4 transfers of 10 applied (one each in blocks 2..=5).
-        let acc1_at_5 = storage.account_state_at_block(&acc1(), 5).unwrap();
-        let acc2_at_5 = storage.account_state_at_block(&acc2(), 5).unwrap();
-        assert_eq!(acc1_at_5.balance, 9960);
-        assert_eq!(acc2_at_5.balance, 20040);
+        let acc1_at_5 = storage.account_state_at_block(&from, 5).unwrap();
+        let acc2_at_5 = storage.account_state_at_block(&to, 5).unwrap();
+        assert_eq!(acc1_at_5.balance, 9950);
+        assert_eq!(acc2_at_5.balance, 20050);
 
         // After final block 9: 8 transfers applied; should match current state.
-        let acc1_at_9 = storage.account_state_at_block(&acc1(), 9).unwrap();
-        let acc2_at_9 = storage.account_state_at_block(&acc2(), 9).unwrap();
-        assert_eq!(acc1_at_9.balance, 9920);
-        assert_eq!(acc2_at_9.balance, 20080);
+        let acc1_at_9 = storage.account_state_at_block(&from, 9).unwrap();
+        let acc2_at_9 = storage.account_state_at_block(&to, 9).unwrap();
+        assert_eq!(acc1_at_9.balance, 9910);
+        assert_eq!(acc2_at_9.balance, 20090);
     }
 }

integration_tests/Cargo.toml

@@ -20,6 +20,7 @@ indexer_service.workspace = true
 serde_json.workspace = true
 token_core.workspace = true
 ata_core.workspace = true
+vault_core.workspace = true
 indexer_service_rpc = { workspace = true, features = ["client"] }
 sequencer_service_rpc = { workspace = true, features = ["client"] }
 jsonrpsee = { workspace = true, features = ["ws-client"] }

integration_tests/src/config.rs

@@ -3,14 +3,30 @@ use std::{net::SocketAddr, path::PathBuf, time::Duration};
 use anyhow::{Context as _, Result};
 use bytesize::ByteSize;
 use indexer_service::{ChannelId, ClientConfig, IndexerConfig};
+use key_protocol::key_management::KeyChain;
 use nssa::{AccountId, PrivateKey, PublicKey};
+use nssa_core::Identifier;
 use sequencer_core::config::{BedrockConfig, GenesisTransaction, SequencerConfig};
 use url::Url;
 use wallet::config::WalletConfig;
 
-pub const INITIAL_PUBLIC_BALANCES_FOR_WALLET: [u128; 2] = [20_000, 40_000];
+pub const INITIAL_PUBLIC_BALANCES_FOR_WALLET: [u128; 2] = [10_000, 20_000];
 pub const INITIAL_PRIVATE_BALANCES_FOR_WALLET: [u128; 2] = [10_000, 20_000];
 
+#[derive(Clone)]
+pub struct InitialPrivateAccountForWallet {
+    pub key_chain: KeyChain,
+    pub identifier: Identifier,
+    pub balance: u128,
+}
+
+impl InitialPrivateAccountForWallet {
+    #[must_use]
+    pub fn account_id(&self) -> AccountId {
+        AccountId::from((&self.key_chain.nullifier_public_key, self.identifier))
+    }
+}
+
 /// Sequencer config options available for custom changes in integration tests.
 #[derive(Debug, Clone, Copy)]
 pub struct SequencerPartialConfig {
@@ -80,43 +96,58 @@ pub fn sequencer_config(
 
 #[must_use]
 pub fn default_public_accounts_for_wallet() -> Vec<(PrivateKey, u128)> {
-    let mut first_private_key = PrivateKey::new_os_random();
-    let first_public_key = PublicKey::new_from_private_key(&first_private_key);
-    let mut first_account_id = AccountId::from(&first_public_key);
+    let mut private_keys = vec![PrivateKey::new_os_random(), PrivateKey::new_os_random()];
+    private_keys.sort_unstable_by_key(|private_key| {
+        AccountId::from(&PublicKey::new_from_private_key(private_key))
+    });
 
-    let mut second_private_key = PrivateKey::new_os_random();
-    let second_public_key = PublicKey::new_from_private_key(&second_private_key);
-    let mut second_account_id = AccountId::from(&second_public_key);
-
-    // Keep account ordering deterministic for tests that index into account lists.
-    if first_account_id > second_account_id {
-        std::mem::swap(&mut first_private_key, &mut second_private_key);
-        std::mem::swap(&mut first_account_id, &mut second_account_id);
-    }
-
-    vec![
-        (first_private_key, INITIAL_PUBLIC_BALANCES_FOR_WALLET[0]),
-        (second_private_key, INITIAL_PUBLIC_BALANCES_FOR_WALLET[1]),
-    ]
+    private_keys
+        .into_iter()
+        .zip(INITIAL_PUBLIC_BALANCES_FOR_WALLET)
+        .collect()
 }
 
 #[must_use]
-pub fn genesis_from_public_accounts(
-    public_accounts: &[(PrivateKey, u128)],
-) -> Vec<GenesisTransaction> {
-    public_accounts
-        .iter()
-        .map(|(private_key, balance)| {
-            let public_key = PublicKey::new_from_private_key(private_key);
-            let account_id = AccountId::from(&public_key);
-            GenesisTransaction::SupplyPublicAccount {
-                account_id,
-                balance: *balance,
-            }
+pub fn default_private_accounts_for_wallet() -> Vec<InitialPrivateAccountForWallet> {
+    let mut key_chains = vec![KeyChain::new_os_random(), KeyChain::new_os_random()];
+    key_chains.sort_unstable();
+
+    key_chains
+        .into_iter()
+        .zip(INITIAL_PRIVATE_BALANCES_FOR_WALLET)
+        .map(|(key_chain, balance)| InitialPrivateAccountForWallet {
+            key_chain,
+            identifier: 0,
+            balance,
         })
         .collect()
 }
 
+#[must_use]
+pub fn genesis_from_accounts(
+    public_accounts: &[(PrivateKey, u128)],
+    private_accounts: &[InitialPrivateAccountForWallet],
+) -> Vec<GenesisTransaction> {
+    let public_genesis = public_accounts.iter().map(|(private_key, balance)| {
+        let public_key = PublicKey::new_from_private_key(private_key);
+        let account_id = AccountId::from(&public_key);
+        GenesisTransaction::SupplyAccount {
+            account_id,
+            balance: *balance,
+        }
+    });
+
+    let private_genesis =
+        private_accounts
+            .iter()
+            .map(|account| GenesisTransaction::SupplyAccount {
+                account_id: account.account_id(),
+                balance: account.balance,
+            });
+
+    public_genesis.chain(private_genesis).collect()
+}
+
 pub fn wallet_config(sequencer_addr: SocketAddr) -> Result<WalletConfig> {
     Ok(WalletConfig {
         sequencer_addr: addr_to_url(UrlProtocol::Http, sequencer_addr)

integration_tests/src/lib.rs

@@ -20,7 +20,7 @@ use crate::{
     indexer_client::IndexerClient,
     setup::{
         setup_bedrock_node, setup_indexer, setup_private_accounts_with_initial_supply,
-        setup_sequencer, setup_wallet,
+        setup_public_accounts_with_initial_supply, setup_sequencer, setup_wallet,
     },
 };
 
@@ -225,7 +225,7 @@ impl TestContextBuilder {
         Self {
             genesis_transactions: None,
             sequencer_partial_config: None,
-            enable_indexer: false,
+            enable_indexer: true,
         }
     }
 
@@ -290,19 +290,29 @@ impl TestContextBuilder {
         };
 
         let initial_public_accounts = config::default_public_accounts_for_wallet();
+        let initial_private_accounts = config::default_private_accounts_for_wallet();
         let (sequencer_handle, temp_sequencer_dir) = setup_sequencer(
             sequencer_partial_config.unwrap_or_default(),
             bedrock_addr,
-            genesis_transactions
-                .unwrap_or_else(|| config::genesis_from_public_accounts(&initial_public_accounts)),
+            genesis_transactions.unwrap_or_else(|| {
+                config::genesis_from_accounts(&initial_public_accounts, &initial_private_accounts)
+            }),
         )
         .await
         .context("Failed to setup Sequencer")?;
 
-        let (mut wallet, temp_wallet_dir, wallet_password) =
-            setup_wallet(sequencer_handle.addr(), &initial_public_accounts)
-                .context("Failed to setup wallet")?;
-        setup_private_accounts_with_initial_supply(&mut wallet)
+        let (mut wallet, temp_wallet_dir, wallet_password) = setup_wallet(
+            sequencer_handle.addr(),
+            &initial_public_accounts,
+            &initial_private_accounts,
+        )
+        .context("Failed to setup wallet")?;
+
+        setup_public_accounts_with_initial_supply(&wallet, &initial_public_accounts)
+            .await
+            .context("Failed to initialize public accounts in wallet")?;
+
+        setup_private_accounts_with_initial_supply(&mut wallet, &initial_private_accounts)
             .await
             .context("Failed to initialize private accounts in wallet")?;
 

integration_tests/src/setup.rs

@@ -1,27 +1,21 @@
-use std::{net::SocketAddr, path::PathBuf};
+use std::{collections::HashMap, net::SocketAddr, path::PathBuf};
 
 use anyhow::{Context as _, Result, bail};
+use common::transaction::NSSATransaction;
 use indexer_service::IndexerHandle;
 use log::{debug, warn};
-use nssa::PrivateKey;
+use nssa::{AccountId, PrivateKey, PublicKey, PublicTransaction, program::Program};
 use sequencer_service::{GenesisTransaction, SequencerHandle};
+use sequencer_service_rpc::RpcClient as _;
 use tempfile::TempDir;
 use testcontainers::compose::DockerCompose;
 use wallet::{
-    WalletCore,
-    cli::{
-        Command, SubcommandReturnValue,
-        account::{AccountSubcommand, NewSubcommand},
-        execute_subcommand,
-        programs::native_token_transfer::AuthTransferSubcommand,
-    },
-    config::WalletConfigOverrides,
+    AccDecodeData::Decode, PrivacyPreservingAccount, WalletCore, config::WalletConfigOverrides,
 };
 
 use crate::{
     BEDROCK_SERVICE_PORT, BEDROCK_SERVICE_WITH_OPEN_PORT,
-    config::{self, INITIAL_PRIVATE_BALANCES_FOR_WALLET},
-    private_mention, public_mention,
+    config::{self, InitialPrivateAccountForWallet},
 };
 
 pub async fn setup_bedrock_node() -> Result<(DockerCompose, SocketAddr)> {
@@ -141,6 +135,7 @@ pub async fn setup_sequencer(
 pub fn setup_wallet(
     sequencer_addr: SocketAddr,
     initial_public_accounts: &[(PrivateKey, u128)],
+    initial_private_accounts: &[InitialPrivateAccountForWallet],
 ) -> Result<(WalletCore, TempDir, String)> {
     let config = config::wallet_config(sequencer_addr).context("Failed to create Wallet config")?;
     let config_serialized =
@@ -172,6 +167,18 @@ pub fn setup_wallet(
             .add_imported_public_account(private_key.clone());
     }
 
+    for private_account in initial_private_accounts {
+        wallet
+            .storage_mut()
+            .key_chain_mut()
+            .add_imported_private_account(
+                private_account.key_chain.clone(),
+                None,
+                private_account.identifier,
+                nssa::Account::default(),
+            );
+    }
+
     wallet
         .store_persistent_data()
         .context("Failed to store wallet persistent data")?;
@@ -179,72 +186,142 @@ pub fn setup_wallet(
     Ok((wallet, temp_wallet_dir, wallet_password))
 }
 
-pub async fn setup_private_accounts_with_initial_supply(wallet: &mut WalletCore) -> Result<()> {
-    for _ in INITIAL_PRIVATE_BALANCES_FOR_WALLET {
-        let result = execute_subcommand(
+pub async fn setup_public_accounts_with_initial_supply(
+    wallet: &WalletCore,
+    initial_public_accounts: &[(PrivateKey, u128)],
+) -> Result<()> {
+    for (private_key, amount) in initial_public_accounts {
+        claim_funds_from_vault(
             wallet,
-            Command::Account(AccountSubcommand::New(NewSubcommand::Private {
-                cci: None,
-                label: None,
-            })),
+            AccountId::from(&PublicKey::new_from_private_key(private_key)),
+            *amount,
         )
         .await
-        .context("Failed to create a private account")?;
-        let SubcommandReturnValue::RegisterAccount { account_id: _ } = result else {
-            bail!("Expected RegisterAccount return value when creating private account");
-        };
-    }
-
-    let public_account_ids: Vec<_> = wallet
-        .storage()
-        .key_chain()
-        .public_account_ids()
-        .map(|(account_id, _idx)| account_id)
-        .collect();
-
-    if public_account_ids.len() < INITIAL_PRIVATE_BALANCES_FOR_WALLET.len() {
-        bail!(
-            "Expected at least {} public accounts in wallet storage, found {}",
-            INITIAL_PRIVATE_BALANCES_FOR_WALLET.len(),
-            public_account_ids.len()
-        );
-    }
-
-    let private_account_ids: Vec<_> = wallet
-        .storage()
-        .key_chain()
-        .private_account_ids()
-        .map(|(account_id, _idx)| account_id)
-        .collect();
-
-    for ((from, to), amount) in public_account_ids
-        .into_iter()
-        .zip(private_account_ids.into_iter())
-        .zip(INITIAL_PRIVATE_BALANCES_FOR_WALLET)
-    {
-        let result = execute_subcommand(
-            wallet,
-            Command::AuthTransfer(AuthTransferSubcommand::Send {
-                from: public_mention(from),
-                to: Some(private_mention(to)),
-                to_npk: None,
-                to_vpk: None,
-                to_identifier: None,
-                amount,
-            }),
-        )
-        .await
-        .context("Failed to perform initial shielded transfer to private account")?;
-
-        if !matches!(
-            result,
-            SubcommandReturnValue::PrivacyPreservingTransfer { .. }
-        ) {
-            bail!(
-                "Expected PrivacyPreservingTransfer return value when shielding initial private funds"
-            );
-        }
+        .context("Failed to claim funds from vault into public account")?;
     }
 
     Ok(())
 }
+
+pub async fn setup_private_accounts_with_initial_supply(
+    wallet: &mut WalletCore,
+    initial_private_accounts: &[InitialPrivateAccountForWallet],
+) -> Result<()> {
+    for private_account in initial_private_accounts {
+        claim_funds_from_vault_to_private(
+            wallet,
+            private_account.account_id(),
+            private_account.balance,
+        )
+        .await
+        .context("Failed to claim funds from vault into private account")?;
+    }
+
+    Ok(())
+}
+
+async fn claim_funds_from_vault(
+    wallet: &WalletCore,
+    owner_id: AccountId,
+    amount: u128,
+) -> Result<()> {
+    let vault_program_id = Program::vault().id();
+    let owner_vault_id = vault_core::compute_vault_account_id(vault_program_id, owner_id);
+
+    let nonces = wallet
+        .get_accounts_nonces(vec![owner_id])
+        .await
+        .context("Failed to fetch owner nonce")?;
+
+    let signing_key = wallet
+        .storage()
+        .key_chain()
+        .pub_account_signing_key(owner_id)
+        .with_context(|| format!("Missing signing key for public account {owner_id}"))?;
+
+    let message = nssa::public_transaction::Message::try_new(
+        vault_program_id,
+        vec![owner_id, owner_vault_id],
+        nonces,
+        vault_core::Instruction::Claim { amount },
+    )
+    .context("Failed to build vault claim message")?;
+
+    let witness_set = nssa::public_transaction::WitnessSet::for_message(&message, &[signing_key]);
+    let tx = PublicTransaction::new(message, witness_set);
+
+    let tx_hash = wallet
+        .sequencer_client
+        .send_transaction(NSSATransaction::Public(tx))
+        .await
+        .context("Failed to submit vault claim transaction")?;
+
+    wallet
+        .poll_native_token_transfer(tx_hash)
+        .await
+        .context("Failed to confirm vault claim transaction")?;
+
+    Ok(())
+}
+
+async fn claim_funds_from_vault_to_private(
+    wallet: &mut WalletCore,
+    owner_id: AccountId,
+    amount: u128,
+) -> Result<()> {
+    let Some(_) = wallet.storage().key_chain().private_account(owner_id) else {
+        bail!("Missing private account in wallet key chain for account {owner_id}");
+    };
+
+    let vault_program = Program::vault();
+    let vault_program_id = vault_program.id();
+    let owner_vault_id = vault_core::compute_vault_account_id(vault_program_id, owner_id);
+
+    let instruction_data =
+        Program::serialize_instruction(vault_core::Instruction::Claim { amount })
+            .context("Failed to serialize vault private claim instruction")?;
+
+    let program_with_dependencies =
+        nssa::privacy_preserving_transaction::circuit::ProgramWithDependencies::new(
+            vault_program,
+            HashMap::from([(
+                Program::authenticated_transfer_program().id(),
+                Program::authenticated_transfer_program(),
+            )]),
+        );
+
+    let (tx_hash, mut secrets) = wallet
+        .send_privacy_preserving_tx(
+            vec![
+                PrivacyPreservingAccount::PrivateOwned(owner_id),
+                PrivacyPreservingAccount::Public(owner_vault_id),
+            ],
+            instruction_data,
+            &program_with_dependencies,
+        )
+        .await
+        .context("Failed to submit private vault claim transaction")?;
+
+    let secret = secrets
+        .pop()
+        .context("Expected one private output secret for vault claim")?;
+
+    let transfer_tx = wallet
+        .poll_native_token_transfer(tx_hash)
+        .await
+        .context("Failed to confirm private vault claim transaction")?;
+
+    let NSSATransaction::PrivacyPreserving(tx) = transfer_tx else {
+        bail!("Expected privacy preserving transaction result for private vault claim");
+    };
+
+    wallet
+        .decode_insert_privacy_preserving_transaction_results(&tx, &[Decode(secret, owner_id)])
+        .context("Failed to decode private vault claim transaction")?;
+
+    wallet
+        .store_persistent_data()
+        .context("Failed to store wallet data after private vault claim")?;
+
+    Ok(())
+}

integration_tests/tests/auth_transfer/public.rs

@@ -1,9 +1,10 @@
 use std::time::Duration;
 
 use anyhow::Result;
+use common::transaction::NSSATransaction;
 use integration_tests::{TIME_TO_WAIT_FOR_BLOCK_SECONDS, TestContext, public_mention};
 use log::info;
-use nssa::program::Program;
+use nssa::{SYSTEM_FAUCET_ACCOUNT_ID, program::Program, public_transaction};
 use sequencer_service_rpc::RpcClient as _;
 use tokio::test;
 use wallet::{
@@ -344,3 +345,90 @@ async fn successful_transfer_using_to_label() -> Result<()> {
 
     Ok(())
 }
+
+#[test]
+async fn cannot_transfer_funds_from_system_faucet_account() -> Result<()> {
+    let ctx = TestContext::new().await?;
+
+    let recipient = ctx.existing_public_accounts()[0];
+    let recipient_balance_before = ctx
+        .sequencer_client()
+        .get_account_balance(recipient)
+        .await?;
+    let faucet_balance_before = ctx
+        .sequencer_client()
+        .get_account_balance(SYSTEM_FAUCET_ACCOUNT_ID)
+        .await?;
+
+    let amount = 1_u128;
+    let message = public_transaction::Message::try_new(
+        Program::authenticated_transfer_program().id(),
+        vec![SYSTEM_FAUCET_ACCOUNT_ID, recipient],
+        vec![],
+        authenticated_transfer_core::Instruction::Transfer { amount },
+    )?;
+    let tx = nssa::PublicTransaction::new(
+        message,
+        nssa::public_transaction::WitnessSet::from_raw_parts(vec![]),
+    );
+    let tx_hash = ctx
+        .sequencer_client()
+        .send_transaction(NSSATransaction::Public(tx))
+        .await?;
+
+    info!("Waiting for next block creation");
+    tokio::time::sleep(Duration::from_secs(TIME_TO_WAIT_FOR_BLOCK_SECONDS)).await;
+
+    let recipient_balance_after = ctx
+        .sequencer_client()
+        .get_account_balance(recipient)
+        .await?;
+    let faucet_balance_after = ctx
+        .sequencer_client()
+        .get_account_balance(SYSTEM_FAUCET_ACCOUNT_ID)
+        .await?;
+    let tx_on_chain = ctx.sequencer_client().get_transaction(tx_hash).await?;
+
+    assert_eq!(recipient_balance_after, recipient_balance_before);
+    assert_eq!(faucet_balance_after, faucet_balance_before);
+    assert!(tx_on_chain.is_none());
+
+    Ok(())
+}
+
+#[test]
+async fn can_transfer_funds_to_system_faucet_account() -> Result<()> {
+    let mut ctx = TestContext::new().await?;
+
+    let sender = ctx.existing_public_accounts()[0];
+    let sender_balance_before = ctx.sequencer_client().get_account_balance(sender).await?;
+    let faucet_balance_before = ctx
+        .sequencer_client()
+        .get_account_balance(SYSTEM_FAUCET_ACCOUNT_ID)
+        .await?;
+
+    let amount = 100_u128;
+    let command = Command::AuthTransfer(AuthTransferSubcommand::Send {
+        from: public_mention(sender),
+        to: Some(public_mention(SYSTEM_FAUCET_ACCOUNT_ID)),
+        to_npk: None,
+        to_vpk: None,
+        to_identifier: Some(0),
+        amount,
+    });
+    wallet::cli::execute_subcommand(ctx.wallet_mut(), command).await?;
+
+    info!("Waiting for next block creation");
+    tokio::time::sleep(Duration::from_secs(TIME_TO_WAIT_FOR_BLOCK_SECONDS)).await;
+
+    let sender_balance_after = ctx.sequencer_client().get_account_balance(sender).await?;
+    let faucet_balance_after = ctx
+        .sequencer_client()
+        .get_account_balance(SYSTEM_FAUCET_ACCOUNT_ID)
+        .await?;
+
+    assert_eq!(sender_balance_after, sender_balance_before - amount);
+    assert_eq!(faucet_balance_after, faucet_balance_before + amount);
+
+    Ok(())
+}

integration_tests/tests/indexer_ffi.rs

@@ -125,9 +125,9 @@ fn indexer_test_run_ffi() -> Result<()> {
 
     let last_block_indexer_ffi = unsafe { *last_block_indexer_ffi_res.value };
 
-    info!("Last block on ind ffi now is {last_block_indexer_ffi}");
+    info!("Last block on indexer FFI now is {last_block_indexer_ffi}");
 
-    assert!(last_block_indexer_ffi > 1);
+    assert!(last_block_indexer_ffi > 0);
 
     Ok(())
 }
@@ -149,9 +149,9 @@ fn indexer_ffi_block_batching() -> Result<()> {
 
     let last_block_indexer = unsafe { *last_block_indexer_ffi_res.value };
 
-    info!("Last block on ind now is {last_block_indexer}");
+    info!("Last block on indexer FFI now is {last_block_indexer}");
 
-    assert!(last_block_indexer > 1);
+    assert!(last_block_indexer > 0);
 
     let before_ffi = FfiOption::<u64>::from_none();
     let limit = 100;

integration_tests/tests/tps.rs

@@ -97,7 +97,7 @@ impl TpsTestManager {
     fn generate_genesis(&self) -> Vec<GenesisTransaction> {
         self.public_keypairs
             .iter()
-            .map(|(_, account_id)| GenesisTransaction::SupplyPublicAccount {
+            .map(|(_, account_id)| GenesisTransaction::SupplyAccount {
                 account_id: *account_id,
                 balance: 10,
             })

nssa/core/src/lib.rs

@@ -25,6 +25,8 @@ pub mod program;
 pub mod error;
 
 pub const GENESIS_BLOCK_ID: BlockId = 1;
+pub const SYSTEM_FAUCET_ACCOUNT_ID: account::AccountId =
+    account::AccountId::new(*b"/LEZ/SystemFaucetAccount/0000000");
 
 pub type BlockId = u64;
 /// Unix timestamp in milliseconds.

nssa/src/lib.rs

@@ -4,7 +4,7 @@
 )]
 
 pub use nssa_core::{
-    GENESIS_BLOCK_ID, SharedSecretKey,
+    GENESIS_BLOCK_ID, SYSTEM_FAUCET_ACCOUNT_ID, SharedSecretKey,
     account::{Account, AccountId, Data},
     encryption::EphemeralPublicKey,
     program::ProgramId,

nssa/src/privacy_preserving_transaction/circuit.rs

@@ -543,7 +543,11 @@ mod tests {
         let recipient = AccountWithMetadata::new(Account::default(), false, shared_account_id);
 
         let balance_to_move: u128 = 100;
-        let instruction = Program::serialize_instruction(balance_to_move).unwrap();
+        let instruction =
+            Program::serialize_instruction(authenticated_transfer_core::Instruction::Transfer {
+                amount: balance_to_move,
+            })
+            .unwrap();
 
         let result = execute_and_prove(
             vec![sender, recipient],

nssa/src/program.rs

@@ -11,7 +11,7 @@ use crate::{
     program_methods::{
         AMM_ELF, AMM_ID, ASSOCIATED_TOKEN_ACCOUNT_ELF, ASSOCIATED_TOKEN_ACCOUNT_ID,
         AUTHENTICATED_TRANSFER_ELF, AUTHENTICATED_TRANSFER_ID, CLOCK_ELF, CLOCK_ID, PINATA_ELF,
-        PINATA_ID, TOKEN_ELF, TOKEN_ID,
+        PINATA_ID, TOKEN_ELF, TOKEN_ID, VAULT_ELF, VAULT_ID,
     },
 };
 
@@ -148,6 +148,14 @@ impl Program {
             elf: ASSOCIATED_TOKEN_ACCOUNT_ELF.to_vec(),
         }
     }
+
+    #[must_use]
+    pub fn vault() -> Self {
+        Self {
+            id: VAULT_ID,
+            elf: VAULT_ELF.to_vec(),
+        }
+    }
 }
 
 // TODO: Testnet only. Refactor to prevent compilation on mainnet.
@@ -179,7 +187,7 @@ mod tests {
         program_methods::{
             AMM_ELF, AMM_ID, ASSOCIATED_TOKEN_ACCOUNT_ELF, ASSOCIATED_TOKEN_ACCOUNT_ID,
             AUTHENTICATED_TRANSFER_ELF, AUTHENTICATED_TRANSFER_ID, CLOCK_ELF, CLOCK_ID, PINATA_ELF,
-            PINATA_ID, PINATA_TOKEN_ELF, PINATA_TOKEN_ID, TOKEN_ELF, TOKEN_ID,
+            PINATA_ID, PINATA_TOKEN_ELF, PINATA_TOKEN_ID, TOKEN_ELF, TOKEN_ID, VAULT_ELF, VAULT_ID,
         },
     };
 
@@ -482,12 +490,15 @@ mod tests {
     fn builtin_programs() {
         let auth_transfer_program = Program::authenticated_transfer_program();
         let token_program = Program::token();
+        let vault_program = Program::vault();
         let pinata_program = Program::pinata();
 
         assert_eq!(auth_transfer_program.id, AUTHENTICATED_TRANSFER_ID);
         assert_eq!(auth_transfer_program.elf, AUTHENTICATED_TRANSFER_ELF);
         assert_eq!(token_program.id, TOKEN_ID);
         assert_eq!(token_program.elf, TOKEN_ELF);
+        assert_eq!(vault_program.id, VAULT_ID);
+        assert_eq!(vault_program.elf, VAULT_ELF);
         assert_eq!(pinata_program.id, PINATA_ID);
         assert_eq!(pinata_program.elf, PINATA_ELF);
     }
@@ -502,6 +513,7 @@ mod tests {
             (PINATA_ELF, PINATA_ID),
             (PINATA_TOKEN_ELF, PINATA_TOKEN_ID),
             (TOKEN_ELF, TOKEN_ID),
+            (VAULT_ELF, VAULT_ID),
         ];
         for (elf, expected_id) in cases {
             let program = Program::new(elf.to_vec()).unwrap();

nssa/src/public_transaction/execution.rs

@@ -1,118 +0,0 @@
-use std::collections::{HashMap, VecDeque};
-
-use log::debug;
-use nssa_core::{
-    account::{Account, AccountId, AccountWithMetadata},
-    program::{ChainedCall, ProgramId, ProgramOutput},
-};
-
-use crate::{PublicTransaction, V03State, error::NssaError};
-
-pub trait Validator {
-    fn validate_pre_execution(&mut self) -> Result<(), NssaError>;
-
-    fn on_chained_call(&mut self) -> Result<(), NssaError>;
-
-    fn validate_output(
-        &mut self,
-        state_diff: &HashMap<AccountId, Account>,
-        caller_program_id: Option<ProgramId>,
-        chained_call: &ChainedCall,
-        program_output: &ProgramOutput,
-    ) -> Result<(), NssaError>;
-
-    fn validate_post_execution(
-        &mut self,
-        state_diff: &HashMap<AccountId, Account>,
-    ) -> Result<(), NssaError>;
-}
-
-pub fn execute(
-    mut validator: impl Validator,
-    tx: &PublicTransaction,
-    state: &V03State,
-) -> Result<HashMap<AccountId, Account>, NssaError> {
-    validator.validate_pre_execution()?;
-
-    let message = tx.message();
-    let signer_account_ids = tx.signer_account_ids();
-
-    // Build pre_states for execution
-    let input_pre_states: Vec<_> = message
-        .account_ids
-        .iter()
-        .map(|account_id| {
-            AccountWithMetadata::new(
-                state.get_account_by_id(*account_id),
-                signer_account_ids.contains(account_id),
-                *account_id,
-            )
-        })
-        .collect();
-
-    let mut state_diff: HashMap<AccountId, Account> = HashMap::new();
-
-    let initial_call = ChainedCall {
-        program_id: message.program_id,
-        instruction_data: message.instruction_data.clone(),
-        pre_states: input_pre_states,
-        pda_seeds: vec![],
-    };
-
-    let mut chained_calls = VecDeque::from_iter([(initial_call, None)]);
-
-    while let Some((chained_call, caller_program_id)) = chained_calls.pop_front() {
-        validator.on_chained_call()?;
-
-        // Check that the `program_id` corresponds to a deployed program
-        let Some(program) = state.programs().get(&chained_call.program_id) else {
-            return Err(NssaError::InvalidInput("Unknown program".into()));
-        };
-
-        debug!(
-            "Program {:?} pre_states: {:?}, instruction_data: {:?}",
-            chained_call.program_id, chained_call.pre_states, chained_call.instruction_data
-        );
-        let mut program_output = program.execute(
-            caller_program_id,
-            &chained_call.pre_states,
-            &chained_call.instruction_data,
-        )?;
-        debug!(
-            "Program {:?} output: {:?}",
-            chained_call.program_id, program_output
-        );
-
-        validator.validate_output(
-            &state_diff,
-            caller_program_id,
-            &chained_call,
-            &program_output,
-        )?;
-
-        for post in program_output
-            .post_states
-            .iter_mut()
-            .filter(|post| post.required_claim().is_some())
-        {
-            post.account_mut().program_owner = chained_call.program_id;
-        }
-
-        // Update the state diff
-        for (pre, post) in program_output
-            .pre_states
-            .iter()
-            .zip(program_output.post_states.iter())
-        {
-            state_diff.insert(pre.account_id, post.account().clone());
-        }
-
-        for new_call in program_output.chained_calls.into_iter().rev() {
-            chained_calls.push_front((new_call, Some(chained_call.program_id)));
-        }
-    }
-
-    validator.validate_post_execution(&state_diff)?;
-
-    Ok(state_diff)
-}

nssa/src/public_transaction/mod.rs

@@ -1,9 +1,7 @@
-pub use execution::{Validator, execute};
 pub use message::Message;
 pub use transaction::PublicTransaction;
 pub use witness_set::WitnessSet;
 
-mod execution;
 mod message;
 mod transaction;
 mod witness_set;

nssa/src/state.rs

@@ -8,7 +8,7 @@ pub use clock_core::{
 };
 use nssa_core::{
     BlockId, Commitment, CommitmentSetDigest, DUMMY_COMMITMENT, MembershipProof, Nullifier,
-    Timestamp,
+    SYSTEM_FAUCET_ACCOUNT_ID, Timestamp,
     account::{Account, AccountId, Nonce},
     program::ProgramId,
 };
@@ -124,8 +124,12 @@ pub struct V03State {
 
 impl Default for V03State {
     fn default() -> Self {
+        let faucet_account = system_faucet_account();
+        let mut public_state = HashMap::new();
+        public_state.insert(SYSTEM_FAUCET_ACCOUNT_ID, faucet_account);
+
         Self {
-            public_state: HashMap::new(),
+            public_state,
             private_state: (CommitmentSet::with_capacity(32), NullifierSet::new()),
             programs: HashMap::new(),
         }
@@ -145,7 +149,7 @@ impl V03State {
         genesis_timestamp: nssa_core::Timestamp,
     ) -> Self {
         let authenticated_transfer_program = Program::authenticated_transfer_program();
-        let public_state = initial_data
+        let mut public_state: HashMap<_, _> = initial_data
             .iter()
             .copied()
             .map(|(account_id, balance)| {
@@ -157,6 +161,8 @@ impl V03State {
                 (account_id, account)
             })
             .collect();
+        let faucet_account = system_faucet_account();
+        public_state.insert(SYSTEM_FAUCET_ACCOUNT_ID, faucet_account);
 
         let mut commitment_set = CommitmentSet::with_capacity(32);
         commitment_set.extend(&[DUMMY_COMMITMENT]);
@@ -180,6 +186,7 @@ impl V03State {
         this.insert_program(Program::token());
         this.insert_program(Program::amm());
         this.insert_program(Program::ata());
+        this.insert_program(Program::vault());
 
         this
     }
@@ -366,6 +373,14 @@ impl V03State {
     }
 }
 
+fn system_faucet_account() -> Account {
+    Account {
+        program_owner: Program::authenticated_transfer_program().id(),
+        balance: u128::MAX,
+        ..Account::default()
+    }
+}
+
 #[cfg(test)]
 pub mod tests {
     #![expect(
@@ -389,7 +404,7 @@ pub mod tests {
     };
 
     use crate::{
-        PublicKey, PublicTransaction, V03State,
+        PublicKey, PublicTransaction, SYSTEM_FAUCET_ACCOUNT_ID, V03State,
         error::{InvalidProgramBehaviorError, NssaError},
         execute_and_prove,
         privacy_preserving_transaction::{
@@ -403,7 +418,7 @@ pub mod tests {
         signature::PrivateKey,
         state::{
             CLOCK_01_PROGRAM_ACCOUNT_ID, CLOCK_10_PROGRAM_ACCOUNT_ID, CLOCK_50_PROGRAM_ACCOUNT_ID,
-            CLOCK_PROGRAM_ACCOUNT_IDS, MAX_NUMBER_CHAINED_CALLS,
+            CLOCK_PROGRAM_ACCOUNT_IDS, MAX_NUMBER_CHAINED_CALLS, system_faucet_account,
         },
     };
 
@@ -597,6 +612,7 @@ pub mod tests {
                     ..Account::default()
                 },
             );
+            this.insert(SYSTEM_FAUCET_ACCOUNT_ID, system_faucet_account());
             for account_id in CLOCK_PROGRAM_ACCOUNT_IDS {
                 this.insert(
                     account_id,
@@ -619,6 +635,7 @@ pub mod tests {
             this.insert(Program::token().id(), Program::token());
             this.insert(Program::amm().id(), Program::amm());
             this.insert(Program::ata().id(), Program::ata());
+            this.insert(Program::vault().id(), Program::vault());
             this
         };
 

nssa/src/validated_state_diff.rs

@@ -1,14 +1,14 @@
 use std::{
-    collections::{HashMap, HashSet},
+    collections::{HashMap, HashSet, VecDeque},
     hash::Hash,
 };
 
+use log::debug;
 use nssa_core::{
     BlockId, Commitment, Nullifier, PrivacyPreservingCircuitOutput, Timestamp,
     account::{Account, AccountId, AccountWithMetadata},
     program::{
-        ChainedCall, Claim, DEFAULT_PROGRAM_ID, ProgramId, ProgramOutput,
-        compute_public_authorized_pdas, validate_execution,
+        ChainedCall, Claim, DEFAULT_PROGRAM_ID, compute_public_authorized_pdas, validate_execution,
     },
 };
 
@@ -45,11 +45,237 @@ impl ValidatedStateDiff {
         block_id: BlockId,
         timestamp: Timestamp,
     ) -> Result<Self, NssaError> {
-        let validator = PublicTransactionValidator::new(tx, state, block_id, timestamp);
-        let state_diff = crate::public_transaction::execute(validator, tx, state)?;
+        let message = tx.message();
+        let witness_set = tx.witness_set();
+
+        // All account_ids must be different
+        ensure!(
+            message.account_ids.iter().collect::<HashSet<_>>().len() == message.account_ids.len(),
+            NssaError::InvalidInput("Duplicate account_ids found in message".into(),)
+        );
+
+        // Check exactly one nonce is provided for each signature
+        ensure!(
+            message.nonces.len() == witness_set.signatures_and_public_keys.len(),
+            NssaError::InvalidInput(
+                "Mismatch between number of nonces and signatures/public keys".into(),
+            )
+        );
+
+        // Check the signatures are valid
+        ensure!(
+            witness_set.is_valid_for(message),
+            NssaError::InvalidInput("Invalid signature for given message and public key".into())
+        );
+
+        let signer_account_ids = tx.signer_account_ids();
+        // Check nonces corresponds to the current nonces on the public state.
+        for (account_id, nonce) in signer_account_ids.iter().zip(&message.nonces) {
+            let current_nonce = state.get_account_by_id(*account_id).nonce;
+            ensure!(
+                current_nonce == *nonce,
+                NssaError::InvalidInput("Nonce mismatch".into())
+            );
+        }
+
+        // Build pre_states for execution
+        let input_pre_states: Vec<_> = message
+            .account_ids
+            .iter()
+            .map(|account_id| {
+                AccountWithMetadata::new(
+                    state.get_account_by_id(*account_id),
+                    signer_account_ids.contains(account_id),
+                    *account_id,
+                )
+            })
+            .collect();
+
+        let mut state_diff: HashMap<AccountId, Account> = HashMap::new();
+
+        let initial_call = ChainedCall {
+            program_id: message.program_id,
+            instruction_data: message.instruction_data.clone(),
+            pre_states: input_pre_states,
+            pda_seeds: vec![],
+        };
+
+        let mut chained_calls = VecDeque::from_iter([(initial_call, None)]);
+        let mut chain_calls_counter = 0;
+
+        while let Some((chained_call, caller_program_id)) = chained_calls.pop_front() {
+            ensure!(
+                chain_calls_counter <= MAX_NUMBER_CHAINED_CALLS,
+                NssaError::MaxChainedCallsDepthExceeded
+            );
+
+            // Check that the `program_id` corresponds to a deployed program
+            let Some(program) = state.programs().get(&chained_call.program_id) else {
+                return Err(NssaError::InvalidInput("Unknown program".into()));
+            };
+
+            debug!(
+                "Program {:?} pre_states: {:?}, instruction_data: {:?}",
+                chained_call.program_id, chained_call.pre_states, chained_call.instruction_data
+            );
+            let mut program_output = program.execute(
+                caller_program_id,
+                &chained_call.pre_states,
+                &chained_call.instruction_data,
+            )?;
+            debug!(
+                "Program {:?} output: {:?}",
+                chained_call.program_id, program_output
+            );
+
+            let authorized_pdas =
+                compute_public_authorized_pdas(caller_program_id, &chained_call.pda_seeds);
+
+            let is_authorized = |account_id: &AccountId| {
+                signer_account_ids.contains(account_id) || authorized_pdas.contains(account_id)
+            };
+
+            for pre in &program_output.pre_states {
+                let account_id = pre.account_id;
+                // Check that the program output pre_states coincide with the values in the public
+                // state or with any modifications to those values during the chain of calls.
+                let expected_pre = state_diff
+                    .get(&account_id)
+                    .cloned()
+                    .unwrap_or_else(|| state.get_account_by_id(account_id));
+                ensure!(
+                    pre.account == expected_pre,
+                    InvalidProgramBehaviorError::InconsistentAccountPreState {
+                        account_id,
+                        expected: Box::new(expected_pre),
+                        actual: Box::new(pre.account.clone())
+                    }
+                );
+
+                // Check that authorization flags are consistent with the provided ones or
+                // authorized by program through the PDA mechanism
+                let expected_is_authorized = is_authorized(&account_id);
+                ensure!(
+                    pre.is_authorized == expected_is_authorized,
+                    InvalidProgramBehaviorError::InconsistentAccountAuthorization {
+                        account_id,
+                        expected_authorization: expected_is_authorized,
+                        actual_authorization: pre.is_authorized
+                    }
+                );
+            }
+
+            // Verify that the program output's self_program_id matches the expected program ID.
+            ensure!(
+                program_output.self_program_id == chained_call.program_id,
+                InvalidProgramBehaviorError::MismatchedProgramId {
+                    expected: chained_call.program_id,
+                    actual: program_output.self_program_id
+                }
+            );
+
+            // Verify that the program output's caller_program_id matches the actual caller.
+            ensure!(
+                program_output.caller_program_id == caller_program_id,
+                InvalidProgramBehaviorError::MismatchedCallerProgramId {
+                    expected: caller_program_id,
+                    actual: program_output.caller_program_id,
+                }
+            );
+
+            // Verify execution corresponds to a well-behaved program.
+            // See the # Programs section for the definition of the `validate_execution` method.
+            validate_execution(
+                &program_output.pre_states,
+                &program_output.post_states,
+                chained_call.program_id,
+            )
+            .map_err(InvalidProgramBehaviorError::ExecutionValidationFailed)?;
+
+            // Verify validity window
+            ensure!(
+                program_output.block_validity_window.is_valid_for(block_id)
+                    && program_output
+                        .timestamp_validity_window
+                        .is_valid_for(timestamp),
+                NssaError::OutOfValidityWindow
+            );
+
+            for (i, post) in program_output.post_states.iter_mut().enumerate() {
+                let Some(claim) = post.required_claim() else {
+                    continue;
+                };
+                let account_id = program_output.pre_states[i].account_id;
+
+                // The invoked program can only claim accounts with default program id.
+                ensure!(
+                    post.account().program_owner == DEFAULT_PROGRAM_ID,
+                    InvalidProgramBehaviorError::ClaimedNonDefaultAccount { account_id }
+                );
+
+                match claim {
+                    Claim::Authorized => {
+                        // The program can only claim accounts that were authorized by the signer.
+                        ensure!(
+                            is_authorized(&account_id),
+                            InvalidProgramBehaviorError::ClaimedUnauthorizedAccount { account_id }
+                        );
+                    }
+                    Claim::Pda(seed) => {
+                        // The program can only claim accounts that correspond to the PDAs it is
+                        // authorized to claim. The public-execution path only sees public
+                        // accounts, so the public-PDA derivation is the correct formula here.
+                        let pda = AccountId::for_public_pda(&chained_call.program_id, &seed);
+                        ensure!(
+                            account_id == pda,
+                            InvalidProgramBehaviorError::MismatchedPdaClaim {
+                                expected: pda,
+                                actual: account_id
+                            }
+                        );
+                    }
+                }
+
+                post.account_mut().program_owner = chained_call.program_id;
+            }
+
+            // Update the state diff
+            for (pre, post) in program_output
+                .pre_states
+                .iter()
+                .zip(program_output.post_states.iter())
+            {
+                state_diff.insert(pre.account_id, post.account().clone());
+            }
+
+            for new_call in program_output.chained_calls.into_iter().rev() {
+                chained_calls.push_front((new_call, Some(chained_call.program_id)));
+            }
+
+            chain_calls_counter = chain_calls_counter
+                .checked_add(1)
+                .expect("we check the max depth at the beginning of the loop");
+        }
+
+        // Check that all modified uninitialized accounts where claimed
+        for (account_id, post) in state_diff.iter().filter_map(|(account_id, post)| {
+            let pre = state.get_account_by_id(*account_id);
+            if pre.program_owner != DEFAULT_PROGRAM_ID {
+                return None;
+            }
+            if pre == *post {
+                return None;
+            }
+            Some((*account_id, post))
+        }) {
+            ensure!(
+                post.program_owner != DEFAULT_PROGRAM_ID,
+                InvalidProgramBehaviorError::DefaultAccountModifiedWithoutClaim { account_id }
+            );
+        }
 
         Ok(Self(StateDiff {
-            signer_account_ids: tx.signer_account_ids(),
+            signer_account_ids,
             public_diff: state_diff,
             new_commitments: vec![],
             new_nullifiers: vec![],
@@ -190,22 +416,6 @@ impl ValidatedStateDiff {
         }))
     }
 
-    pub fn from_public_genesis_transaction(
-        tx: &PublicTransaction,
-        state: &V03State,
-    ) -> Result<Self, NssaError> {
-        let validator = GenesisPublicTransactionValidator;
-        let state_diff = crate::public_transaction::execute(validator, tx, state)?;
-
-        Ok(Self(StateDiff {
-            signer_account_ids: tx.signer_account_ids(),
-            public_diff: state_diff,
-            new_commitments: vec![],
-            new_nullifiers: vec![],
-            program: None,
-        }))
-    }
-
     /// Returns the public account changes produced by this transaction.
     ///
     /// Used by callers (e.g. the sequencer) to inspect the diff before committing it, for example
@@ -220,256 +430,6 @@ impl ValidatedStateDiff {
     }
 }
 
-pub struct PublicTransactionValidator<'tx, 'state> {
-    tx: &'tx PublicTransaction,
-    state: &'state V03State,
-    block_id: BlockId,
-    timestamp: Timestamp,
-    chain_calls_counter: usize,
-}
-
-impl<'tx, 'state> PublicTransactionValidator<'tx, 'state> {
-    pub const fn new(
-        tx: &'tx PublicTransaction,
-        state: &'state V03State,
-        block_id: BlockId,
-        timestamp: Timestamp,
-    ) -> Self {
-        Self {
-            tx,
-            state,
-            block_id,
-            timestamp,
-            chain_calls_counter: 0,
-        }
-    }
-}
-
-impl crate::public_transaction::Validator for PublicTransactionValidator<'_, '_> {
-    fn validate_pre_execution(&mut self) -> Result<(), NssaError> {
-        let message = self.tx.message();
-        let witness_set = self.tx.witness_set();
-
-        // All account_ids must be different
-        ensure!(
-            message.account_ids.iter().collect::<HashSet<_>>().len() == message.account_ids.len(),
-            NssaError::InvalidInput("Duplicate account_ids found in message".into(),)
-        );
-
-        // Check exactly one nonce is provided for each signature
-        ensure!(
-            message.nonces.len() == witness_set.signatures_and_public_keys.len(),
-            NssaError::InvalidInput(
-                "Mismatch between number of nonces and signatures/public keys".into(),
-            )
-        );
-
-        // Check the signatures are valid
-        ensure!(
-            witness_set.is_valid_for(message),
-            NssaError::InvalidInput("Invalid signature for given message and public key".into())
-        );
-
-        let signer_account_ids = self.tx.signer_account_ids();
-        // Check nonces corresponds to the current nonces on the public state.
-        for (account_id, nonce) in signer_account_ids.iter().zip(&message.nonces) {
-            let current_nonce = self.state.get_account_by_id(*account_id).nonce;
-            ensure!(
-                current_nonce == *nonce,
-                NssaError::InvalidInput("Nonce mismatch".into())
-            );
-        }
-
-        Ok(())
-    }
-
-    fn on_chained_call(&mut self) -> Result<(), NssaError> {
-        self.chain_calls_counter = self
-            .chain_calls_counter
-            .checked_add(1)
-            .ok_or(NssaError::MaxChainedCallsDepthExceeded)?;
-        ensure!(
-            self.chain_calls_counter <= MAX_NUMBER_CHAINED_CALLS,
-            NssaError::MaxChainedCallsDepthExceeded
-        );
-        Ok(())
-    }
-
-    fn validate_output(
-        &mut self,
-        state_diff: &HashMap<AccountId, Account>,
-        caller_program_id: Option<ProgramId>,
-        chained_call: &ChainedCall,
-        program_output: &ProgramOutput,
-    ) -> Result<(), NssaError> {
-        let authorized_pdas =
-            compute_public_authorized_pdas(caller_program_id, &chained_call.pda_seeds);
-
-        let is_authorized = |account_id: &AccountId| {
-            self.tx.signer_account_ids().contains(account_id)
-                || authorized_pdas.contains(account_id)
-        };
-
-        for pre in &program_output.pre_states {
-            let account_id = pre.account_id;
-            // Check that the program output pre_states coincide with the values in the public
-            // state or with any modifications to those values during the chain of calls.
-            let expected_pre = state_diff
-                .get(&account_id)
-                .cloned()
-                .unwrap_or_else(|| self.state.get_account_by_id(account_id));
-            ensure!(
-                pre.account == expected_pre,
-                InvalidProgramBehaviorError::InconsistentAccountPreState {
-                    account_id,
-                    expected: Box::new(expected_pre),
-                    actual: Box::new(pre.account.clone())
-                }
-            );
-
-            // Check that authorization flags are consistent with the provided ones or
-            // authorized by program through the PDA mechanism
-            let expected_is_authorized = is_authorized(&account_id);
-            ensure!(
-                pre.is_authorized == expected_is_authorized,
-                InvalidProgramBehaviorError::InconsistentAccountAuthorization {
-                    account_id,
-                    expected_authorization: expected_is_authorized,
-                    actual_authorization: pre.is_authorized
-                }
-            );
-        }
-
-        // Verify that the program output's self_program_id matches the expected program ID.
-        ensure!(
-            program_output.self_program_id == chained_call.program_id,
-            InvalidProgramBehaviorError::MismatchedProgramId {
-                expected: chained_call.program_id,
-                actual: program_output.self_program_id
-            }
-        );
-
-        // Verify that the program output's caller_program_id matches the actual caller.
-        ensure!(
-            program_output.caller_program_id == caller_program_id,
-            InvalidProgramBehaviorError::MismatchedCallerProgramId {
-                expected: caller_program_id,
-                actual: program_output.caller_program_id,
-            }
-        );
-
-        // Verify execution corresponds to a well-behaved program.
-        // See the # Programs section for the definition of the `validate_execution` method.
-        validate_execution(
-            &program_output.pre_states,
-            &program_output.post_states,
-            chained_call.program_id,
-        )
-        .map_err(InvalidProgramBehaviorError::ExecutionValidationFailed)?;
-
-        // Verify validity window
-        ensure!(
-            program_output
-                .block_validity_window
-                .is_valid_for(self.block_id)
-                && program_output
-                    .timestamp_validity_window
-                    .is_valid_for(self.timestamp),
-            NssaError::OutOfValidityWindow
-        );
-
-        for (i, post) in program_output.post_states.iter().enumerate() {
-            let Some(claim) = post.required_claim() else {
-                continue;
-            };
-            let account_id = program_output.pre_states[i].account_id;
-
-            // The invoked program can only claim accounts with default program id.
-            ensure!(
-                post.account().program_owner == DEFAULT_PROGRAM_ID,
-                InvalidProgramBehaviorError::ClaimedNonDefaultAccount { account_id }
-            );
-
-            match claim {
-                Claim::Authorized => {
-                    // The program can only claim accounts that were authorized by the signer.
-                    ensure!(
-                        is_authorized(&account_id),
-                        InvalidProgramBehaviorError::ClaimedUnauthorizedAccount { account_id }
-                    );
-                }
-                Claim::Pda(seed) => {
-                    // The program can only claim accounts that correspond to the PDAs it is
-                    // authorized to claim.
-                    let pda = AccountId::for_public_pda(&chained_call.program_id, &seed);
-                    ensure!(
-                        account_id == pda,
-                        InvalidProgramBehaviorError::MismatchedPdaClaim {
-                            expected: pda,
-                            actual: account_id
-                        }
-                    );
-                }
-            }
-        }
-
-        Ok(())
-    }
-
-    fn validate_post_execution(
-        &mut self,
-        state_diff: &HashMap<AccountId, Account>,
-    ) -> Result<(), NssaError> {
-        // Check that all modified uninitialized accounts where claimed
-        for (account_id, post) in state_diff.iter().filter_map(|(account_id, post)| {
-            let pre = self.state.get_account_by_id(*account_id);
-            if pre.program_owner != DEFAULT_PROGRAM_ID {
-                return None;
-            }
-            if pre == *post {
-                return None;
-            }
-            Some((*account_id, post))
-        }) {
-            ensure!(
-                post.program_owner != DEFAULT_PROGRAM_ID,
-                InvalidProgramBehaviorError::DefaultAccountModifiedWithoutClaim { account_id }
-            );
-        }
-
-        Ok(())
-    }
-}
-
-pub struct GenesisPublicTransactionValidator;
-
-impl crate::public_transaction::Validator for GenesisPublicTransactionValidator {
-    fn validate_pre_execution(&mut self) -> Result<(), NssaError> {
-        Ok(())
-    }
-
-    fn on_chained_call(&mut self) -> Result<(), NssaError> {
-        Ok(())
-    }
-
-    fn validate_output(
-        &mut self,
-        _state_diff: &HashMap<AccountId, Account>,
-        _caller_program_id: Option<ProgramId>,
-        _chained_call: &ChainedCall,
-        _program_output: &ProgramOutput,
-    ) -> Result<(), NssaError> {
-        Ok(())
-    }
-
-    fn validate_post_execution(
-        &mut self,
-        _state_diff: &HashMap<AccountId, Account>,
-    ) -> Result<(), NssaError> {
-        Ok(())
-    }
-}
-
 fn check_privacy_preserving_circuit_proof_is_valid(
     proof: &Proof,
     public_pre_states: &[AccountWithMetadata],

program_methods/guest/Cargo.toml

@@ -17,5 +17,6 @@ amm_core.workspace = true
 amm_program.workspace = true
 ata_core.workspace = true
 ata_program.workspace = true
+vault_core.workspace = true
 risc0-zkvm.workspace = true
 serde = { workspace = true, default-features = false }

program_methods/guest/src/bin/authenticated_transfer.rs

@@ -1,6 +1,6 @@
 use authenticated_transfer_core::Instruction;
-use clock_core::{CLOCK_01_PROGRAM_ACCOUNT_ID, ClockAccountData};
 use nssa_core::{
+    SYSTEM_FAUCET_ACCOUNT_ID,
     account::{Account, AccountWithMetadata},
     program::{
         AccountPostState, Claim, DEFAULT_PROGRAM_ID, ProgramInput, ProgramOutput, read_nssa_inputs,
@@ -27,7 +27,12 @@ fn transfer(
     balance_to_move: u128,
 ) -> Vec<AccountPostState> {
     // Continue only if the sender has authorized this operation
-    assert!(sender.is_authorized, "Sender must be authorized");
+    // or it's the system faucet account which is allowed without authorization as it may be used
+    // only by sequencer.
+    assert!(
+        sender.is_authorized || sender.account_id == SYSTEM_FAUCET_ACCOUNT_ID,
+        "Sender must be authorized"
+    );
 
     // Create accounts post states, with updated balances
     let sender_post = {
@@ -59,39 +64,6 @@ fn transfer(
     vec![sender_post, recipient_post]
 }
 
-/// Mints `balance` into a new account at genesis (`block_id` == 0).
-///
-/// Claims the target account and sets its balance in a single operation.
-fn mint(
-    target: AccountWithMetadata,
-    clock: AccountWithMetadata,
-    balance: u128,
-) -> Vec<AccountPostState> {
-    assert_eq!(
-        clock.account_id, CLOCK_01_PROGRAM_ACCOUNT_ID,
-        "Second account must be the clock account"
-    );
-
-    let clock_data = ClockAccountData::from_bytes(&clock.account.data.clone().into_inner());
-    assert_eq!(
-        clock_data.block_id, 0,
-        "Mint can only execute at genesis (block_id must be 0)"
-    );
-
-    assert!(
-        target.account == Account::default(),
-        "Target account must be uninitialized"
-    );
-
-    let mut target_post_account = target.account;
-    target_post_account.balance = balance;
-    let target_post = AccountPostState::new_claimed(target_post_account, Claim::Authorized);
-
-    let clock_post = AccountPostState::new(clock.account);
-
-    vec![target_post, clock_post]
-}
-
 /// A transfer of balance program.
 /// To be used both in public and private contexts.
 fn main() {
@@ -119,11 +91,6 @@ fn main() {
                 .expect("Transfer requires exactly 2 accounts");
             transfer(sender, recipient, balance_to_move)
         }
-        Instruction::Mint { amount: balance } => {
-            let [target, clock] = <[_; 2]>::try_from(pre_states.clone())
-                .expect("Mint requires exactly 2 accounts: target, clock");
-            mint(target, clock, balance)
-        }
     };
 
     ProgramOutput::new(

program_methods/guest/src/bin/vault.rs

@@ -0,0 +1,103 @@
+use authenticated_transfer_core::Instruction as AuthTransferInstruction;
+use nssa_core::program::{
+    AccountPostState, ChainedCall, ProgramInput, ProgramOutput, read_nssa_inputs,
+};
+use vault_core::Instruction;
+
+fn unchanged_post_states(
+    pre_states: &[nssa_core::account::AccountWithMetadata],
+) -> Vec<AccountPostState> {
+    pre_states
+        .iter()
+        .map(|pre_state| AccountPostState::new(pre_state.account.clone()))
+        .collect()
+}
+
+fn main() {
+    let (
+        ProgramInput {
+            self_program_id,
+            caller_program_id,
+            pre_states,
+            instruction,
+        },
+        instruction_words,
+    ) = read_nssa_inputs::<Instruction>();
+
+    let pre_states_clone = pre_states.clone();
+    let post_states = unchanged_post_states(&pre_states_clone);
+
+    let chained_calls = match instruction {
+        Instruction::Initialize => {
+            let [owner, owner_vault] = pre_states
+                .try_into()
+                .expect("Initialize requires exactly 2 accounts");
+
+            let seed = vault_core::compute_vault_seed(owner.account_id);
+            assert!(
+                owner.account.program_owner != nssa_core::program::DEFAULT_PROGRAM_ID,
+                "Owner account must be initialized"
+            );
+
+            let mut owner_vault_for_callee = owner_vault;
+            owner_vault_for_callee.is_authorized = true;
+
+            vec![
+                ChainedCall::new(
+                    owner.account.program_owner,
+                    vec![owner_vault_for_callee],
+                    &AuthTransferInstruction::Initialize,
+                )
+                .with_pda_seeds(vec![seed]),
+            ]
+        }
+        Instruction::Transfer { amount } => {
+            let [sender, recipient, recipient_vault] = pre_states
+                .try_into()
+                .expect("Transfer requires exactly 3 accounts");
+
+            let seed = vault_core::compute_vault_seed(recipient.account_id);
+
+            let mut recipient_vault_for_callee = recipient_vault;
+            recipient_vault_for_callee.is_authorized = true;
+
+            vec![
+                ChainedCall::new(
+                    sender.account.program_owner,
+                    vec![sender, recipient_vault_for_callee],
+                    &AuthTransferInstruction::Transfer { amount },
+                )
+                .with_pda_seeds(vec![seed]),
+            ]
+        }
+        Instruction::Claim { amount } => {
+            let [owner, owner_vault] = pre_states
+                .try_into()
+                .expect("Claim requires exactly 2 accounts");
+
+            let seed = vault_core::compute_vault_seed(owner.account_id);
+
+            let mut owner_vault_for_callee = owner_vault;
+            owner_vault_for_callee.is_authorized = true;
+
+            vec![
+                ChainedCall::new(
+                    owner_vault_for_callee.account.program_owner,
+                    vec![owner_vault_for_callee, owner],
+                    &AuthTransferInstruction::Transfer { amount },
+                )
+                .with_pda_seeds(vec![seed]),
+            ]
+        }
+    };
+
+    ProgramOutput::new(
+        self_program_id,
+        caller_program_id,
+        instruction_words,
+        pre_states_clone,
+        post_states,
+    )
+    .with_chained_calls(chained_calls)
+    .write();
+}

programs/authenticated_transfer/core/src/lib.rs

@@ -14,16 +14,4 @@ pub enum Instruction {
     ///
     /// Required accounts: `[account_to_initialize]`.
     Initialize,
-
-    /// Mint `amount` into a new account at genesis (`block_id` == 0).
-    ///
-    /// Claims the target account (sets `program_owner` to `authenticated_transfer` program id)
-    /// and sets its balance in a single operation.
-    ///
-    /// Required accounts: `[target_account, clock_account]`.
-    ///
-    /// Panics if:
-    /// - `target_account` is not in the default (uninitialized) state
-    /// - clock's `block_id` is not 0
-    Mint { amount: u128 },
 }

programs/vault/core/Cargo.toml

@@ -0,0 +1,13 @@
+[package]
+name = "vault_core"
+version = "0.1.0"
+edition = "2024"
+license = { workspace = true }
+
+[lints]
+workspace = true
+
+[dependencies]
+nssa_core.workspace = true
+serde = { workspace = true, default-features = false }
+risc0-zkvm.workspace = true

programs/vault/core/src/lib.rs

@@ -0,0 +1,57 @@
+pub use nssa_core::program::PdaSeed;
+use nssa_core::{account::AccountId, program::ProgramId};
+use serde::{Deserialize, Serialize};
+
+const VAULT_SEED_DOMAIN_SEPARATOR: &[u8] = b"/LEZ/v0.3/VaultSeed/00000000000/";
+
+const _: () = assert!(
+    VAULT_SEED_DOMAIN_SEPARATOR.len() == 32,
+    "Domain separator must be exactly 32 bytes long"
+);
+
+#[derive(Serialize, Deserialize)]
+pub enum Instruction {
+    /// Initializes a vault account for owner.
+    ///
+    /// Required accounts (2):
+    /// - Owner account
+    /// - Owner vault PDA account
+    Initialize,
+
+    /// Transfers native tokens from sender to recipient's vault.
+    ///
+    /// Required accounts (3):
+    /// - Sender account
+    /// - Recipient account
+    /// - Recipient vault PDA account
+    Transfer { amount: u128 },
+
+    /// Claims native tokens from owner's vault into owner's account.
+    ///
+    /// Required accounts (2):
+    /// - Owner account
+    /// - Owner vault PDA account
+    Claim { amount: u128 },
+}
+
+#[must_use]
+pub fn compute_vault_seed(owner_id: AccountId) -> PdaSeed {
+    use risc0_zkvm::sha::{Impl, Sha256 as _};
+
+    let mut bytes = [0_u8; 64];
+    bytes[..32].copy_from_slice(VAULT_SEED_DOMAIN_SEPARATOR);
+    bytes[32..64].copy_from_slice(&owner_id.to_bytes());
+
+    PdaSeed::new(
+        Impl::hash_bytes(&bytes)
+            .as_bytes()
+            .try_into()
+            .expect("Hash output must be exactly 32 bytes long"),
+    )
+}
+
+#[must_use]
+pub fn compute_vault_account_id(vault_program_id: ProgramId, owner_id: AccountId) -> AccountId {
+    let seed = compute_vault_seed(owner_id);
+    AccountId::for_public_pda(&vault_program_id, &seed)
+}

sequencer/core/Cargo.toml

@@ -15,7 +15,7 @@ storage.workspace = true
 mempool.workspace = true
 logos-blockchain-zone-sdk.workspace = true
 testnet_initial_state.workspace = true
-authenticated_transfer_core.workspace = true
+vault_core.workspace = true
 
 anyhow.workspace = true
 serde.workspace = true

sequencer/core/src/config.rs

@@ -18,7 +18,7 @@ use url::Url;
 #[derive(Clone, Debug, Serialize, Deserialize)]
 #[serde(rename_all = "snake_case")]
 pub enum GenesisTransaction {
-    SupplyPublicAccount {
+    SupplyAccount {
         account_id: AccountId,
         balance: u128,
     },

sequencer/core/src/lib.rs

@@ -12,9 +12,7 @@ use logos_blockchain_key_management_system_service::keys::{ED25519_SECRET_KEY_SI
 use mempool::{MemPool, MemPoolHandle};
 #[cfg(feature = "mock")]
 pub use mock::SequencerCoreWithMockClients;
-use nssa::{
-    AccountId, PublicTransaction, ValidatedStateDiff, program::Program, public_transaction::Message,
-};
+use nssa::{AccountId, PublicTransaction, program::Program, public_transaction::Message};
 use nssa_core::GENESIS_BLOCK_ID;
 pub use storage::error::DbError;
 
@@ -363,49 +361,48 @@ fn build_genesis_state(config: &SequencerConfig) -> (nssa::V03State, Vec<NSSATra
     #[cfg(feature = "testnet")]
     let mut state = testnet_initial_state::initial_state_testnet();
 
-    let mut genesis_txs = Vec::new();
-
-    for genesis_tx in &config.genesis {
-        let (tx, diff) = match genesis_tx {
-            GenesisTransaction::SupplyPublicAccount {
+    let genesis_txs = config
+        .genesis
+        .iter()
+        .map(|genesis_tx| match genesis_tx {
+            GenesisTransaction::SupplyAccount {
                 account_id,
                 balance,
-            } => build_supply_public_account_genesis_transaction(&state, account_id, *balance),
-        };
-        state.apply_state_diff(diff);
-        genesis_txs.push(tx);
-    }
-
-    let clock_tx = clock_invocation(0);
-    let diff = ValidatedStateDiff::from_public_transaction(&clock_tx, &state, GENESIS_BLOCK_ID, 0)
-        .expect("Failed to execute clock transaction for genesis block");
-    state.apply_state_diff(diff);
-    genesis_txs.push(clock_tx.into());
+            } => build_supply_account_genesis_transaction(account_id, *balance),
+        })
+        .chain(std::iter::once(clock_invocation(0)))
+        .inspect(|tx| {
+            state
+                .transition_from_public_transaction(tx, GENESIS_BLOCK_ID, 0)
+                .expect("Failed to execute genesis transaction");
+        })
+        .map(NSSATransaction::Public)
+        .collect();
 
     (state, genesis_txs)
 }
 
-fn build_supply_public_account_genesis_transaction(
-    state: &nssa::V03State,
+fn build_supply_account_genesis_transaction(
     account_id: &AccountId,
     balance: u128,
-) -> (NSSATransaction, ValidatedStateDiff) {
-    let authenticated_transfer_id = Program::authenticated_transfer_program().id();
+) -> PublicTransaction {
+    let vault_program_id = Program::vault().id();
+    let recipient_vault_id = vault_core::compute_vault_account_id(vault_program_id, *account_id);
 
     let message = Message::try_new(
-        authenticated_transfer_id,
-        vec![*account_id, nssa::CLOCK_01_PROGRAM_ACCOUNT_ID],
+        vault_program_id,
+        vec![
+            nssa::SYSTEM_FAUCET_ACCOUNT_ID,
+            *account_id,
+            recipient_vault_id,
+        ],
         vec![],
-        authenticated_transfer_core::Instruction::Mint { amount: balance },
+        vault_core::Instruction::Transfer { amount: balance },
     )
-    .expect("Failed to serialize genesis mint instruction");
-    let witness_set = nssa::public_transaction::WitnessSet::for_message(&message, &[]);
+    .expect("Failed to serialize genesis transfer instruction");
+    let witness_set = nssa::public_transaction::WitnessSet::from_raw_parts(vec![]);
 
-    let tx = PublicTransaction::new(message, witness_set);
-    let diff = ValidatedStateDiff::from_public_genesis_transaction(&tx, state)
-        .expect("Failed to execute genesis mint public transaction");
-
-    (tx.into(), diff)
+    PublicTransaction::new(message, witness_set)
 }
 
 /// Load signing key from file or generate a new one if it doesn't exist.

storage/src/indexer/mod.rs

@@ -4,7 +4,7 @@ use common::{
     block::Block,
     transaction::{NSSATransaction, clock_invocation},
 };
-use nssa::{GENESIS_BLOCK_ID, V03State, ValidatedStateDiff};
+use nssa::{GENESIS_BLOCK_ID, V03State};
 use rocksdb::{
     BoundColumnFamily, ColumnFamilyDescriptor, DBWithThreadMode, MultiThreaded, Options,
 };
@@ -189,16 +189,17 @@ impl RocksDBIO {
                             ));
                         }
                     };
-                    let state_diff = ValidatedStateDiff::from_public_genesis_transaction(
-                        &genesis_tx,
-                        &breakpoint,
-                    )
-                    .map_err(|err| {
-                        DbError::db_interaction_error(format!(
-                            "Failed to create state diff from genesis transaction with err {err:?}"
-                        ))
-                    })?;
-                    breakpoint.apply_state_diff(state_diff);
+                    breakpoint
+                        .transition_from_public_transaction(
+                            &genesis_tx,
+                            block.header.block_id,
+                            block.header.timestamp,
+                        )
+                        .map_err(|err| {
+                            DbError::db_interaction_error(format!(
+                                "genesis transaction execution failed with err {err:?}"
+                            ))
+                        })?;
                 } else {
                     transaction
                         .transaction_stateless_check()

test_program_methods/guest/src/bin/auth_transfer_proxy.rs

@@ -56,9 +56,12 @@ fn main() {
         // private PDA (seed, npk) binding when pda_seeds match the private PDA derivation.
         let mut auth_pda_pre = pda_pre;
         auth_pda_pre.is_authorized = true;
-        let auth_call =
-            ChainedCall::new(auth_transfer_id, vec![auth_pda_pre, recipient_pre], &amount)
-                .with_pda_seeds(vec![pda_seed]);
+        let auth_call = ChainedCall::new(
+            auth_transfer_id,
+            vec![auth_pda_pre, recipient_pre],
+            &authenticated_transfer_core::Instruction::Transfer { amount },
+        )
+        .with_pda_seeds(vec![pda_seed]);
 
         ProgramOutput::new(
             self_program_id,
@@ -81,8 +84,12 @@ fn main() {
         // to authorize the PDA. authenticated_transfer will claim it with Claim::Authorized.
         let mut auth_pda_pre = pda_pre;
         auth_pda_pre.is_authorized = true;
-        let auth_call = ChainedCall::new(auth_transfer_id, vec![auth_pda_pre], &0_u128)
-            .with_pda_seeds(vec![pda_seed]);
+        let auth_call = ChainedCall::new(
+            auth_transfer_id,
+            vec![auth_pda_pre],
+            &authenticated_transfer_core::Instruction::Initialize,
+        )
+        .with_pda_seeds(vec![pda_seed]);
 
         ProgramOutput::new(
             self_program_id,