diff --git a/docker/docker-compose.regtest.yml b/docker/docker-compose.regtest.yml
index 5cb1236..0ce54cd 100644
--- a/docker/docker-compose.regtest.yml
+++ b/docker/docker-compose.regtest.yml
@@ -4,16 +4,22 @@
 # environment at ~/dev/local/docker/regtest
 #
 # Usage:
-#   1. Start the regtest environment:
-#      cd ~/dev/local/docker/regtest && ./start-regtest
+#   1. Start regtest (minimal — only what LP needs):
+#      cd ~/dev/local/docker/regtest && docker compose up -d bitcoind lnd-1 lnd-4
 #
 #   2. Start lamassu services:
-#      cd lamassu-next/docker && docker compose -f docker-compose.regtest.yml up -d
+#      cd docker && docker compose -f docker-compose.regtest.yml up -d
 #
-#   3. Configure apps/machine/.env:
+#   3. Bootstrap (funds LND, opens channels, creates LP app):
+#      cd docker && ./regtest-bootstrap.sh
+#
+#   4. Configure apps/machine/.env:
 #      VITE_RELAY_URL=ws://localhost:7777
 #      VITE_EXTENSION_API_URL=http://localhost:1777
 #
+# Phone wallet testing (LNURL callbacks need LAN IP):
+#   HOST_IP=192.168.1.100 docker compose -f docker-compose.regtest.yml up -d
+#
 # Services:
 #   - strfry: Private Nostr relay (port 7777)
 #   - lightning-pub: Nostr-native Lightning account system (port 1776)
@@ -37,10 +43,11 @@ services:
         soft: 524288
         hard: 524288
     healthcheck:
-      test: ['CMD', 'nc', '-z', 'localhost', '7777']
-      interval: 10s
-      timeout: 5s
-      retries: 5
+      # Check port 7777 (0x1E61) is listening via procfs — BusyBox nc lacks -z flag
+      test: ['CMD-SHELL', 'grep -q ":1E61 " /proc/net/tcp']
+      interval: 5s
+      timeout: 3s
+      retries: 10
     restart: unless-stopped
     networks:
       - regtest
@@ -76,7 +83,16 @@ services:
       - ADMIN_TOKEN=lamassu-dev-admin-token
       # Extension HTTP API URL (for LNURL callbacks from external wallets)
       # Use HOST_IP env var for your machine's LAN IP (required for phone wallets)
-      - EXTENSION_SERVICE_URL=http://${HOST_IP:-192.168.1.190}:1777
+      - EXTENSION_SERVICE_URL=http://${HOST_IP:-localhost}:1777
+    depends_on:
+      strfry:
+        condition: service_healthy
+    healthcheck:
+      test: ['CMD-SHELL', 'curl -so /dev/null -w "%{http_code}" http://localhost:1776 | grep -q .']
+      interval: 10s
+      timeout: 5s
+      retries: 30
+      start_period: 30s
     restart: unless-stopped
     networks:
       - regtest
diff --git a/docker/regtest-bootstrap.sh b/docker/regtest-bootstrap.sh
new file mode 100755
index 0000000..f00ace1
--- /dev/null
+++ b/docker/regtest-bootstrap.sh
@@ -0,0 +1,273 @@
+#!/usr/bin/env bash
+# regtest-bootstrap.sh — Bootstrap a working LP+LND regtest environment
+#
+# Prerequisites:
+#   1. Regtest running (minimal — only needs bitcoind + lnd-1 + lnd-4):
+#      cd ~/dev/local/docker/regtest && docker compose up -d bitcoind lnd-1 lnd-4
+#   2. Lamassu services running:
+#      cd docker && docker compose -f docker-compose.regtest.yml up -d
+#
+# What this script does:
+#   1. Waits for bitcoind and LND nodes to be synced
+#   2. Funds LND-1 (1 BTC from bitcoind)
+#   3. Opens a 5M sat channel from LND-1 → LND-4 (LP's backend)
+#   4. Mines blocks to confirm and announce the channel
+#   5. Waits for LP to be healthy
+#   6. Creates an LP app and funds it (10k sats via invoice from LND-1)
+#   7. Prints summary with pubkeys, app token, and channel status
+
+set -euo pipefail
+
+# -- Colors --
+RED='\033[0;31m'
+GREEN='\033[0;32m'
+YELLOW='\033[1;33m'
+CYAN='\033[0;36m'
+NC='\033[0m' # No Color
+
+info()  { echo -e "${CYAN}[INFO]${NC}  $*"; }
+ok()    { echo -e "${GREEN}[OK]${NC}    $*"; }
+warn()  { echo -e "${YELLOW}[WARN]${NC}  $*"; }
+err()   { echo -e "${RED}[ERROR]${NC} $*"; }
+
+# -- Auto-detect container name prefix --
+# The regtest compose uses project name "lnbits" (via start-regtest) or "regtest" (direct).
+# Detect which prefix the RUNNING bitcoind container has (filter=running avoids stale containers).
+if docker ps -f name=lnbits-bitcoind-1 -f status=running --format '{{.Names}}' | grep -q .; then
+  PREFIX="lnbits"
+elif docker ps -f name=regtest-bitcoind-1 -f status=running --format '{{.Names}}' | grep -q .; then
+  PREFIX="regtest"
+else
+  err "No running bitcoind container found (tried lnbits-bitcoind-1 and regtest-bitcoind-1)"
+  err "Start regtest first: cd ~/dev/local/docker/regtest && docker compose up -d bitcoind lnd-1 lnd-4"
+  exit 1
+fi
+info "Using container prefix: ${PREFIX}"
+
+# -- Container helpers --
+bitcoin_cli() {
+  docker exec "${PREFIX}-bitcoind-1" bitcoin-cli -regtest "$@"
+}
+
+lncli_1() {
+  docker exec "${PREFIX}-lnd-1-1" lncli --network regtest --rpcserver=lnd-1:10009 "$@"
+}
+
+lncli_4() {
+  docker exec "${PREFIX}-lnd-4-1" lncli --network regtest --rpcserver=lnd-4:10009 "$@"
+}
+
+LP_URL="http://localhost:1776"
+LP_EXT_URL="http://localhost:1777"
+ADMIN_TOKEN="lamassu-dev-admin-token"
+CHANNEL_SIZE=5000000  # 5M sats
+FUND_AMOUNT=10000     # 10k sats for LP app
+
+# -- Step 1: Wait for bitcoind --
+info "Waiting for bitcoind..."
+for i in $(seq 1 60); do
+  if bitcoin_cli getblockchaininfo > /dev/null 2>&1; then
+    ok "bitcoind ready (block $(bitcoin_cli getblockcount))"
+    break
+  fi
+  if [ "$i" -eq 60 ]; then
+    err "bitcoind not ready after 60s — is regtest running?"
+    exit 1
+  fi
+  sleep 1
+done
+
+# Ensure a wallet exists
+bitcoin_cli createwallet default 2>/dev/null \
+  || bitcoin_cli loadwallet default 2>/dev/null \
+  || true
+
+# Mine initial blocks if needed (coinbase needs 100 confirmations to be spendable)
+BLOCKS=$(bitcoin_cli getblockcount)
+if [ "$BLOCKS" -lt 101 ]; then
+  NEEDED=$((101 - BLOCKS))
+  info "Mining ${NEEDED} initial blocks (coinbase needs 100 confirmations)..."
+  bitcoin_cli -generate "$NEEDED" > /dev/null
+  ok "Mined to block $(bitcoin_cli getblockcount)"
+fi
+
+# -- Step 2: Wait for LND-1 and LND-4 to sync --
+wait_lnd_sync() {
+  local name=$1
+  local cli_fn=$2
+  info "Waiting for ${name} to sync..."
+  for i in $(seq 1 120); do
+    if [ "$($cli_fn getinfo 2>/dev/null | jq -r '.synced_to_chain' 2>/dev/null)" = "true" ]; then
+      ok "${name} synced"
+      return 0
+    fi
+    if [ "$i" -eq 120 ]; then
+      err "${name} not synced after 120s"
+      exit 1
+    fi
+    sleep 1
+  done
+}
+
+wait_lnd_sync "LND-1" lncli_1
+wait_lnd_sync "LND-4" lncli_4
+
+# -- Step 3: Fund LND-1 --
+info "Funding LND-1..."
+LND1_ADDR=$(lncli_1 newaddress p2wkh | jq -r '.address')
+bitcoin_cli -named sendtoaddress address="$LND1_ADDR" amount=1 fee_rate=100 > /dev/null
+info "Mining 6 blocks to confirm funding..."
+bitcoin_cli -generate 6 > /dev/null
+
+# Wait for LND-1 to see the confirmed balance
+for i in $(seq 1 30); do
+  BALANCE=$(lncli_1 walletbalance | jq -r '.confirmed_balance')
+  if [ "$BALANCE" != "0" ] && [ -n "$BALANCE" ]; then
+    ok "LND-1 funded: ${BALANCE} sats"
+    break
+  fi
+  sleep 1
+done
+
+# -- Step 4: Connect LND-1 → LND-4 and open channel --
+LND4_PUBKEY=$(lncli_4 getinfo | jq -r '.identity_pubkey')
+info "Connecting LND-1 → LND-4 (${LND4_PUBKEY:0:16}...)..."
+lncli_1 connect "${LND4_PUBKEY}@${PREFIX}-lnd-4-1:9735" > /dev/null 2>&1 || true
+
+# Check if channel already exists
+EXISTING=$(lncli_1 listchannels --peer "$LND4_PUBKEY" 2>/dev/null | jq '.channels | length')
+if [ "${EXISTING:-0}" -gt 0 ]; then
+  warn "Channel to LND-4 already exists, skipping open"
+else
+  info "Opening ${CHANNEL_SIZE} sat channel LND-1 → LND-4..."
+  lncli_1 openchannel "$LND4_PUBKEY" "$CHANNEL_SIZE" > /dev/null
+
+  info "Mining 6 blocks to confirm channel..."
+  bitcoin_cli -generate 6 > /dev/null
+
+  # Wait for channel to leave pending
+  for i in $(seq 1 60); do
+    PENDING=$(lncli_1 pendingchannels | jq '.pending_open_channels | length')
+    if [ "$PENDING" = "0" ]; then
+      break
+    fi
+    sleep 1
+  done
+fi
+
+# -- Step 5: Verify channel is active and in graph --
+info "Waiting for channel to become active..."
+for i in $(seq 1 60); do
+  ACTIVE=$(lncli_1 listchannels --peer "$LND4_PUBKEY" 2>/dev/null | jq '[.channels[] | select(.active == true)] | length')
+  if [ "${ACTIVE:-0}" -gt 0 ]; then
+    ok "Channel active"
+    break
+  fi
+  if [ "$i" -eq 60 ]; then
+    warn "Channel not active after 60s — may need more blocks"
+  fi
+  sleep 1
+done
+
+# Mine a few more blocks to ensure graph announcement propagates
+bitcoin_cli -generate 3 > /dev/null
+
+info "Checking graph..."
+for i in $(seq 1 30); do
+  GRAPH_NODES=$(lncli_1 describegraph 2>/dev/null | jq '.nodes | length')
+  GRAPH_EDGES=$(lncli_1 describegraph 2>/dev/null | jq '.edges | length')
+  if [ "${GRAPH_EDGES:-0}" -gt 0 ]; then
+    ok "Graph: ${GRAPH_NODES} nodes, ${GRAPH_EDGES} edges"
+    break
+  fi
+  if [ "$i" -eq 30 ]; then
+    warn "Graph has no edges yet — channel may not be announced"
+  fi
+  sleep 2
+done
+
+# -- Step 6: Wait for Lightning.Pub to be healthy --
+info "Waiting for Lightning.Pub..."
+for i in $(seq 1 120); do
+  if curl -so /dev/null "${LP_URL}" 2>/dev/null; then
+    ok "Lightning.Pub ready"
+    break
+  fi
+  if [ "$i" -eq 120 ]; then
+    err "Lightning.Pub not ready after 120s"
+    err "Check: docker logs lamassu-lightning-pub"
+    exit 1
+  fi
+  sleep 1
+done
+
+# Small delay to ensure LP has fully initialized its LND connection
+sleep 5
+
+# -- Step 7: Create LP app --
+info "Creating LP app 'regtest-atm'..."
+APP_RESPONSE=$(curl -sf "${LP_URL}/api/admin/app/add" \
+  -H "Authorization: Bearer ${ADMIN_TOKEN}" \
+  -H "Content-Type: application/json" \
+  -d '{"name": "regtest-atm", "allow_user_creation": true}')
+
+if [ -z "$APP_RESPONSE" ]; then
+  err "Failed to create LP app — check LP logs"
+  exit 1
+fi
+
+APP_ID=$(echo "$APP_RESPONSE" | jq -r '.app.id')
+APP_NPUB=$(echo "$APP_RESPONSE" | jq -r '.app.npub')
+APP_TOKEN=$(echo "$APP_RESPONSE" | jq -r '.auth_token')
+
+if [ "$APP_ID" = "null" ] || [ -z "$APP_ID" ]; then
+  err "App creation returned unexpected response:"
+  echo "$APP_RESPONSE" | jq .
+  exit 1
+fi
+
+ok "App created: id=${APP_ID}"
+
+# -- Step 8: Fund the app (create invoice via LP, pay from LND-1) --
+info "Funding app with ${FUND_AMOUNT} sats..."
+INVOICE_RESPONSE=$(curl -sf "${LP_URL}/api/app/add/invoice" \
+  -H "Authorization: Bearer ${APP_TOKEN}" \
+  -H "Content-Type: application/json" \
+  -d "{\"payer_identifier\": \"bootstrap\", \"http_callback_url\": \"\", \"invoice_req\": {\"amountSats\": ${FUND_AMOUNT}, \"memo\": \"regtest bootstrap\"}}")
+
+INVOICE=$(echo "$INVOICE_RESPONSE" | jq -r '.invoice')
+if [ "$INVOICE" = "null" ] || [ -z "$INVOICE" ]; then
+  warn "Failed to create invoice — app has 0 balance"
+  warn "Response: $INVOICE_RESPONSE"
+else
+  # Pay from LND-1
+  PAY_RESULT=$(lncli_1 payinvoice --force "$INVOICE" 2>&1) || true
+  PAY_STATUS=$(echo "$PAY_RESULT" | jq -r '.status' 2>/dev/null || echo "")
+  if [ "$PAY_STATUS" = "SUCCEEDED" ] || echo "$PAY_RESULT" | grep -q "SUCCEEDED"; then
+    ok "App funded with ${FUND_AMOUNT} sats"
+  else
+    warn "Payment may have failed — check manually"
+    warn "Result: $(echo "$PAY_RESULT" | tail -3)"
+  fi
+fi
+
+# -- Summary --
+# LP uses LND-4 as its backend, so LP pubkey = LND-4 pubkey
+echo ""
+echo -e "${GREEN}========================================${NC}"
+echo -e "${GREEN}  Regtest Bootstrap Complete${NC}"
+echo -e "${GREEN}========================================${NC}"
+echo ""
+echo -e "  ${CYAN}LND-1 pubkey:${NC}  $(lncli_1 getinfo | jq -r '.identity_pubkey')"
+echo -e "  ${CYAN}LP (LND-4):${NC}    ${LND4_PUBKEY}"
+echo ""
+echo -e "  ${CYAN}LP app ID:${NC}     ${APP_ID}"
+echo -e "  ${CYAN}LP app token:${NC}  ${APP_TOKEN}"
+echo ""
+echo -e "  ${CYAN}LP URL:${NC}        ${LP_URL}"
+echo -e "  ${CYAN}Extension URL:${NC} ${LP_EXT_URL}"
+echo -e "  ${CYAN}Relay URL:${NC}     ws://localhost:7777"
+echo ""
+CHAN_INFO=$(lncli_1 listchannels --peer "$LND4_PUBKEY" 2>/dev/null | jq -r '.channels[0] | "\(.local_balance) / \(.capacity) sats (active: \(.active))"' 2>/dev/null || echo "unknown")
+echo -e "  ${CYAN}Channel:${NC}       LND-1 → LND-4: ${CHAN_INFO}"
+echo ""
diff --git a/docker/regtest.sh b/docker/regtest.sh
new file mode 100755
index 0000000..b8ab709
--- /dev/null
+++ b/docker/regtest.sh
@@ -0,0 +1,142 @@
+#!/usr/bin/env bash
+# regtest.sh — Manage the LP+LND regtest development environment
+#
+# Usage:
+#   ./regtest.sh up        Start everything + bootstrap
+#   ./regtest.sh down      Stop everything
+#   ./regtest.sh reset     Full teardown (volumes + data) and fresh start
+#   ./regtest.sh status    Show container status
+#   ./regtest.sh logs [svc] Tail logs (lp, relay, miner, lnd1, lnd4, bitcoind)
+#   ./regtest.sh lncli N   Run lncli on LND-N (e.g. ./regtest.sh lncli 1 getinfo)
+#   ./regtest.sh bitcoin   Run bitcoin-cli (e.g. ./regtest.sh bitcoin getblockcount)
+
+set -euo pipefail
+
+SCRIPT_DIR="$(cd "$(dirname "$0")" && pwd)"
+REGTEST_DIR="${REGTEST_DIR:-$HOME/dev/local/docker/regtest}"
+COMPOSE_FILE="${SCRIPT_DIR}/docker-compose.regtest.yml"
+
+RED='\033[0;31m'
+GREEN='\033[0;32m'
+CYAN='\033[0;36m'
+NC='\033[0m'
+
+# -- Detect container prefix (regtest- or lnbits-) --
+detect_prefix() {
+  if docker ps -f name=regtest-bitcoind-1 -f status=running --format '{{.Names}}' | grep -q .; then
+    echo "regtest"
+  elif docker ps -f name=lnbits-bitcoind-1 -f status=running --format '{{.Names}}' | grep -q .; then
+    echo "lnbits"
+  else
+    echo ""
+  fi
+}
+
+cmd_up() {
+  echo -e "${CYAN}Starting regtest (bitcoind + lnd-1 + lnd-4)...${NC}"
+  cd "$REGTEST_DIR" && docker compose up -d bitcoind lnd-1 lnd-4
+
+  echo -e "${CYAN}Starting lamassu services...${NC}"
+  docker compose -f "$COMPOSE_FILE" up -d
+
+  echo -e "${CYAN}Running bootstrap...${NC}"
+  "$SCRIPT_DIR/regtest-bootstrap.sh"
+}
+
+cmd_down() {
+  echo -e "${CYAN}Stopping lamassu services...${NC}"
+  docker compose -f "$COMPOSE_FILE" down 2>/dev/null || true
+
+  echo -e "${CYAN}Stopping regtest...${NC}"
+  cd "$REGTEST_DIR" && docker compose down 2>/dev/null || true
+
+  echo -e "${GREEN}All stopped.${NC}"
+}
+
+cmd_reset() {
+  echo -e "${CYAN}Full reset: tearing down everything + wiping data...${NC}"
+
+  docker compose -f "$COMPOSE_FILE" down -v 2>/dev/null || true
+  cd "$REGTEST_DIR" && docker compose down -v 2>/dev/null || true
+
+  # Clean LND data (root-owned from containers)
+  docker run --rm -v "$REGTEST_DIR/data:/data" alpine sh -c 'rm -rf /data/lnd-1/* /data/lnd-4/*' 2>/dev/null || true
+
+  echo -e "${GREEN}Clean. Starting fresh...${NC}"
+  cmd_up
+}
+
+cmd_status() {
+  echo -e "${CYAN}Containers:${NC}"
+  docker ps --format 'table {{.Names}}\t{{.Status}}\t{{.Ports}}' | grep -E 'regtest|lamassu|NAMES' | sort
+
+  PREFIX=$(detect_prefix)
+  if [ -n "$PREFIX" ]; then
+    echo ""
+    BLOCK=$(docker exec "${PREFIX}-bitcoind-1" bitcoin-cli -regtest getblockcount 2>/dev/null || echo "?")
+    echo -e "  ${CYAN}Block height:${NC} ${BLOCK}"
+
+    for N in 1 4; do
+      SYNCED=$(docker exec "${PREFIX}-lnd-${N}-1" lncli --network regtest --rpcserver="lnd-${N}:10009" getinfo 2>/dev/null | jq -r '.synced_to_chain' 2>/dev/null || echo "?")
+      echo -e "  ${CYAN}LND-${N} synced:${NC} ${SYNCED}"
+    done
+
+    LP_STATUS=$(curl -so /dev/null -w "%{http_code}" http://localhost:1776 2>/dev/null || echo "down")
+    echo -e "  ${CYAN}LP status:${NC}    ${LP_STATUS}"
+
+    EXT_STATUS=$(curl -so /dev/null -w "%{http_code}" http://localhost:1777 2>/dev/null || echo "down")
+    echo -e "  ${CYAN}Extension:${NC}    ${EXT_STATUS}"
+  fi
+}
+
+cmd_logs() {
+  local svc="${1:-lp}"
+  case "$svc" in
+    lp|lightning-pub) docker logs -f --tail 50 lamassu-lightning-pub ;;
+    relay|strfry)     docker logs -f --tail 50 lamassu-relay ;;
+    miner)            docker logs -f --tail 50 lamassu-miner ;;
+    lnd1|lnd-1)       PREFIX=$(detect_prefix); docker logs -f --tail 50 "${PREFIX}-lnd-1-1" ;;
+    lnd4|lnd-4)       PREFIX=$(detect_prefix); docker logs -f --tail 50 "${PREFIX}-lnd-4-1" ;;
+    bitcoind)         PREFIX=$(detect_prefix); docker logs -f --tail 50 "${PREFIX}-bitcoind-1" ;;
+    *)                echo "Unknown service: $svc (try: lp, relay, miner, lnd1, lnd4, bitcoind)"; exit 1 ;;
+  esac
+}
+
+cmd_lncli() {
+  local N="$1"; shift
+  PREFIX=$(detect_prefix)
+  if [ -z "$PREFIX" ]; then
+    echo -e "${RED}No running regtest found${NC}"; exit 1
+  fi
+  docker exec "${PREFIX}-lnd-${N}-1" lncli --network regtest --rpcserver="lnd-${N}:10009" "$@"
+}
+
+cmd_bitcoin() {
+  PREFIX=$(detect_prefix)
+  if [ -z "$PREFIX" ]; then
+    echo -e "${RED}No running regtest found${NC}"; exit 1
+  fi
+  docker exec "${PREFIX}-bitcoind-1" bitcoin-cli -regtest "$@"
+}
+
+# -- Main --
+case "${1:-help}" in
+  up)      cmd_up ;;
+  down)    cmd_down ;;
+  reset)   cmd_reset ;;
+  status)  cmd_status ;;
+  logs)    shift; cmd_logs "${1:-lp}" ;;
+  lncli)   shift; cmd_lncli "$@" ;;
+  bitcoin) shift; cmd_bitcoin "$@" ;;
+  *)
+    echo "Usage: $0 {up|down|reset|status|logs|lncli|bitcoin}"
+    echo ""
+    echo "  up        Start everything + bootstrap"
+    echo "  down      Stop everything"
+    echo "  reset     Full teardown + fresh start"
+    echo "  status    Show container & service status"
+    echo "  logs [s]  Tail logs (lp, relay, miner, lnd1, lnd4, bitcoind)"
+    echo "  lncli N   Run lncli on LND-N (e.g. $0 lncli 1 getinfo)"
+    echo "  bitcoin   Run bitcoin-cli (e.g. $0 bitcoin getblockcount)"
+    ;;
+esac