diff --git a/__init__.py b/__init__.py
index 921c383..cffa9fa 100644
--- a/__init__.py
+++ b/__init__.py
@@ -27,7 +27,11 @@ def nostrmarket_renderer():
 nostr_client: NostrClient = NostrClient()
 
 
-from .tasks import wait_for_nostr_events, wait_for_paid_invoices  # noqa
+from .tasks import (  # noqa
+    subscription_health_monitor,
+    wait_for_nostr_events,
+    wait_for_paid_invoices,
+)
 from .views import *  # noqa
 from .views_api import *  # noqa
 
@@ -65,4 +69,13 @@ def nostrmarket_start():
     task3 = create_permanent_unique_task(
         "ext_nostrmarket_wait_for_events", _wait_for_nostr_events
     )
-    scheduled_tasks.extend([task1, task2, task3])
+
+    async def _health_monitor():
+        # start after the subscription is active
+        await asyncio.sleep(20)
+        await subscription_health_monitor(nostr_client)
+
+    task4 = create_permanent_unique_task(
+        "ext_nostrmarket_health_monitor", _health_monitor
+    )
+    scheduled_tasks.extend([task1, task2, task3, task4])
diff --git a/crud.py b/crud.py
index adc0836..2fe8453 100644
--- a/crud.py
+++ b/crud.py
@@ -23,16 +23,19 @@ from .models import (
 
 async def create_merchant(user_id: str, m: PartialMerchant) -> Merchant:
     merchant_id = urlsafe_short_hash()
+    # Post-aiolabs/nostrmarket#5: no `private_key` column written. The
+    # legacy column is dropped by `migrations_fork.m001_aio_drop_private_key`
+    # for fresh installs and NULL-tolerated for the brief window between
+    # this code change deploying and the fork-migration running.
     await db.execute(
         """
         INSERT INTO nostrmarket.merchants
-               (user_id, id, private_key, public_key, meta)
-        VALUES (:user_id, :id, :private_key, :public_key, :meta)
+               (user_id, id, public_key, meta)
+        VALUES (:user_id, :id, :public_key, :meta)
         """,
         {
             "user_id": user_id,
             "id": merchant_id,
-            "private_key": m.private_key,
             "public_key": m.public_key,
             "meta": json.dumps(dict(m.config)),
         },
@@ -55,6 +58,32 @@ async def update_merchant(
     return await get_merchant(user_id, merchant_id)
 
 
+async def update_merchant_pubkey(
+    user_id: str, merchant_id: str, public_key: str
+) -> Optional[Merchant]:
+    """Re-point a merchant's identity to a new pubkey (e.g. after the
+    account migrated to a fresh RemoteBunkerSigner keypair).
+
+    Post-aiolabs/nostrmarket#5: there is no `private_key` column to
+    update — the merchant pubkey is the only stored identity material,
+    and the signing nsec lives entirely in the bunker against
+    `account.id` (== `merchant.user_id`) on the lnbits side.
+    """
+    await db.execute(
+        f"""
+            UPDATE nostrmarket.merchants
+            SET public_key = :public_key, time = {db.timestamp_now}
+            WHERE id = :id AND user_id = :user_id
+        """,
+        {
+            "public_key": public_key,
+            "id": merchant_id,
+            "user_id": user_id,
+        },
+    )
+    return await get_merchant(user_id, merchant_id)
+
+
 async def touch_merchant(user_id: str, merchant_id: str) -> Optional[Merchant]:
     await db.execute(
         f"""
diff --git a/description.md b/description.md
index 3cfe8bc..b4fc5d2 100644
--- a/description.md
+++ b/description.md
@@ -5,6 +5,6 @@ Its functions include:
 - Managing products, sales, and customer communication as a merchant
 - Browsing and ordering products as a customer
 - Tracking order status and delivery
-- Communicating via NIP-04 encrypted direct messages
+- Communicating via NIP-17 private direct messages (NIP-44 encryption + NIP-59 gift wrapping)
 
 A decentralized commerce solution for merchants and buyers who want to trade goods and services over Nostr with end-to-end encrypted communication.
diff --git a/helpers.py b/helpers.py
index dd26116..1bc81b6 100644
--- a/helpers.py
+++ b/helpers.py
@@ -1,72 +1,9 @@
-import base64
-import secrets
-from typing import Optional
-
-import coincurve
 from bech32 import bech32_decode, convertbits
-from cryptography.hazmat.primitives import padding
-from cryptography.hazmat.primitives.ciphers import Cipher, algorithms, modes
 
-
-def get_shared_secret(privkey: str, pubkey: str):
-    pk = coincurve.PublicKey(bytes.fromhex("02" + pubkey))
-    sk = coincurve.PrivateKey(bytes.fromhex(privkey))
-    shared_point = pk.multiply(sk.secret)
-
-    shared_point_bytes = shared_point.format(compressed=False)
-    x_coord = shared_point_bytes[1:33]
-    return x_coord
-
-
-def decrypt_message(encoded_message: str, encryption_key) -> str:
-    encoded_data = encoded_message.split("?iv=")
-    if len(encoded_data) == 1:
-        return encoded_data[0]
-    encoded_content, encoded_iv = encoded_data[0], encoded_data[1]
-
-    iv = base64.b64decode(encoded_iv)
-    cipher = Cipher(algorithms.AES(encryption_key), modes.CBC(iv))
-    encrypted_content = base64.b64decode(encoded_content)
-
-    decryptor = cipher.decryptor()
-    decrypted_message = decryptor.update(encrypted_content) + decryptor.finalize()
-
-    unpadder = padding.PKCS7(128).unpadder()
-    unpadded_data = unpadder.update(decrypted_message) + unpadder.finalize()
-
-    return unpadded_data.decode()
-
-
-def encrypt_message(message: str, encryption_key, iv: Optional[bytes] = None) -> str:
-    padder = padding.PKCS7(128).padder()
-    padded_data = padder.update(message.encode()) + padder.finalize()
-
-    iv = iv if iv else secrets.token_bytes(16)
-    cipher = Cipher(algorithms.AES(encryption_key), modes.CBC(iv))
-
-    encryptor = cipher.encryptor()
-    encrypted_message = encryptor.update(padded_data) + encryptor.finalize()
-
-    base64_message = base64.b64encode(encrypted_message).decode()
-    base64_iv = base64.b64encode(iv).decode()
-    return f"{base64_message}?iv={base64_iv}"
-
-
-def sign_message_hash(private_key: str, hash_: bytes) -> str:
-    privkey = coincurve.PrivateKey(bytes.fromhex(private_key))
-    sig = privkey.sign_schnorr(hash_)
-    return sig.hex()
-
-
-def test_decrypt_encrypt(encoded_message: str, encryption_key):
-    msg = decrypt_message(encoded_message, encryption_key)
-
-    # ecrypt using the same initialisation vector
-    iv = base64.b64decode(encoded_message.split("?iv=")[1])
-    ecrypted_msg = encrypt_message(msg, encryption_key, iv)
-    assert (
-        encoded_message == ecrypted_msg
-    ), f"expected '{encoded_message}', but got '{ecrypted_msg}'"
+# NOTE (aiolabs/nostrmarket#5): `sign_message_hash` is gone. All merchant
+# signing routes through the lnbits `NostrSigner` ABC via
+# `services._resolve_merchant_signer(merchant)`. The nsec lives in the
+# bunker, never in this process.
 
 
 def normalize_public_key(pubkey: str) -> str:
diff --git a/migrations_fork.py b/migrations_fork.py
new file mode 100644
index 0000000..22bf38e
--- /dev/null
+++ b/migrations_fork.py
@@ -0,0 +1,77 @@
+"""
+aiolabs fork-migrations for nostrmarket (companion to upstream
+`migrations.py`).
+
+Per the aiolabs/lnbits#8 fork-migrations pattern: every aio-only
+schema delta lives in this single squashed function so we never
+introduce conflicts in `migrations.py` (which stays byte-identical to
+upstream and rebases cleanly).
+
+The function is loaded by lnbits's patched `migrate_extension_database()`
+under the `nostrmarket_fork` namespace in core `dbversions`, with the
+following invariants:
+  - Every ALTER must be idempotent (use `_alter_drop_column_safe`-style
+    wrappers or `IF NOT EXISTS` / `IF EXISTS` predicates) so re-runs
+    are no-ops on already-migrated installs.
+  - Schema changes here MUST NOT depend on the version of upstream's
+    `migrations.py` they're running against — upstream rebases must
+    not require this file to be edited.
+
+See `aiolabs/lnbits#8` for the pattern + `aiolabs/lnbits/core/services/
+signer_migration.py` for the prior art on `_alter_*_safe` helpers.
+"""
+
+from loguru import logger
+
+
+async def _drop_column_safe(db, table: str, column: str) -> None:
+    """SQLite-safe drop-column. Newer SQLite (3.35+) supports
+    `ALTER TABLE … DROP COLUMN`; older versions need the classic
+    create-new-table + copy + swap dance. Postgres handles
+    `ALTER TABLE … DROP COLUMN IF EXISTS` natively.
+
+    Idempotent: catches "no such column" + "column does not exist"
+    so re-runs are no-ops.
+    """
+    try:
+        # Postgres path (supports IF EXISTS natively); also works on
+        # SQLite ≥ 3.35.
+        await db.execute(f"ALTER TABLE {table} DROP COLUMN IF EXISTS {column};")
+        return
+    except Exception as exc:
+        # SQLite < 3.35 doesn't support IF EXISTS; fall through to the
+        # bare DROP COLUMN attempt + swallow the not-found case.
+        msg = str(exc).lower()
+        if "syntax" not in msg and "if exists" not in msg:
+            # Something other than the IF-EXISTS unsupported case; surface.
+            raise
+
+    try:
+        await db.execute(f"ALTER TABLE {table} DROP COLUMN {column};")
+    except Exception as exc:
+        msg = str(exc).lower()
+        if "no such column" in msg or "does not exist" in msg:
+            # Already dropped; idempotent skip.
+            return
+        raise
+
+
+async def m001_aio_drop_merchant_private_key(db):
+    """Drop the legacy `nostrmarket.merchants.private_key` column.
+
+    Per aiolabs/nostrmarket#5, the merchant's signing identity is owned
+    by the lnbits-side account: signing routes through
+    `resolve_signer(account).sign_event(...)` (which dispatches to
+    `RemoteBunkerSigner` post-aiolabs/lnbits#18 phase 2.x). The nsec
+    never lives in this extension's storage. Dropping the column makes
+    that contract enforced at the schema level rather than relying on
+    "nobody writes to it anymore."
+
+    Idempotent: re-runs no-op via `_drop_column_safe`.
+    """
+    logger.info(
+        "[NOSTRMARKET fork] m001: dropping merchants.private_key "
+        "(aiolabs/nostrmarket#5 — signing routes through lnbits NostrSigner)"
+    )
+    await _drop_column_safe(db, "nostrmarket.merchants", "private_key")
+    logger.info("[NOSTRMARKET fork] m001: done")
diff --git a/models.py b/models.py
index b12b775..6a4ae3b 100644
--- a/models.py
+++ b/models.py
@@ -7,12 +7,6 @@ from typing import Any, List, Optional, Tuple
 from lnbits.utils.exchange_rates import btc_price, fiat_amount_as_satoshis
 from pydantic import BaseModel
 
-from .helpers import (
-    decrypt_message,
-    encrypt_message,
-    get_shared_secret,
-    sign_message_hash,
-)
 from .nostr.event import NostrEvent
 
 ######################################## NOSTR ########################################
@@ -48,6 +42,8 @@ class MerchantConfig(MerchantProfile):
     # TODO: switched to True for AIO demo; determine if we leave this as True
     active: bool = True
     restore_in_progress: Optional[bool] = False
+    # Set at runtime (not persisted) when account keypair != merchant keypair
+    key_mismatch: Optional[bool] = False
 
 
 class CreateMerchantRequest(BaseModel):
@@ -55,39 +51,22 @@ class CreateMerchantRequest(BaseModel):
 
 
 class PartialMerchant(BaseModel):
-    private_key: str
     public_key: str
     config: MerchantConfig = MerchantConfig()
 
 
 class Merchant(PartialMerchant, Nostrable):
     id: str
+    user_id: str
     time: Optional[int] = 0
 
-    def sign_hash(self, hash_: bytes) -> str:
-        return sign_message_hash(self.private_key, hash_)
-
-    def decrypt_message(self, encrypted_message: str, public_key: str) -> str:
-        encryption_key = get_shared_secret(self.private_key, public_key)
-        return decrypt_message(encrypted_message, encryption_key)
-
-    def encrypt_message(self, clear_text_message: str, public_key: str) -> str:
-        encryption_key = get_shared_secret(self.private_key, public_key)
-        return encrypt_message(clear_text_message, encryption_key)
-
-    def build_dm_event(self, message: str, to_pubkey: str) -> NostrEvent:
-        content = self.encrypt_message(message, to_pubkey)
-        event = NostrEvent(
-            pubkey=self.public_key,
-            created_at=round(time.time()),
-            kind=4,
-            tags=[["p", to_pubkey]],
-            content=content,
-        )
-        event.id = event.event_id
-        event.sig = self.sign_hash(bytes.fromhex(event.id))
-
-        return event
+    # NOTE (aiolabs/nostrmarket#5): no `sign_hash` / `encrypt_message` /
+    # `decrypt_message` methods on Merchant anymore. Signing + NIP-44 crypto
+    # for a merchant goes through the lnbits `NostrSigner` abstraction
+    # (`resolve_signer(account)`); merchant is now pure metadata pointing
+    # at its owning account via `user_id`. The bunker (`RemoteBunkerSigner`)
+    # holds the merchant's nsec — lnbits never has it server-side.
+    # See `services._resolve_merchant_signer()` for the resolution helper.
 
     @classmethod
     def from_row(cls, row: dict) -> "Merchant":
diff --git a/nostr/nip44.py b/nostr/nip44.py
new file mode 100644
index 0000000..908ad8a
--- /dev/null
+++ b/nostr/nip44.py
@@ -0,0 +1,180 @@
+"""
+NIP-44 v2: Encrypted Payloads (Versioned)
+
+secp256k1 ECDH, HKDF, padding, ChaCha20, HMAC-SHA256, base64
+
+Reference: https://github.com/nostr-protocol/nips/blob/master/44.md
+"""
+
+import base64
+import hashlib
+import hmac
+import math
+import secrets
+import struct
+
+import coincurve
+from cryptography.hazmat.primitives.ciphers import Cipher, algorithms
+from cryptography.hazmat.primitives.kdf.hkdf import HKDFExpand
+from cryptography.hazmat.primitives import hashes
+
+VERSION = 2
+MIN_PLAINTEXT_SIZE = 1
+MAX_PLAINTEXT_SIZE = 65535
+
+
+def get_conversation_key(private_key_hex: str, public_key_hex: str) -> bytes:
+    """
+    Calculate long-term conversation key between two users via ECDH + HKDF-extract.
+    Symmetric: get_conversation_key(a, B) == get_conversation_key(b, A)
+    """
+    pk = coincurve.PublicKey(bytes.fromhex("02" + public_key_hex))
+    sk = coincurve.PrivateKey(bytes.fromhex(private_key_hex))
+    shared_point = pk.multiply(sk.secret)
+    shared_x = shared_point.format(compressed=False)[1:33]
+
+    # HKDF-extract only (not expand) with salt='nip44-v2'
+    conversation_key = hmac.new(b"nip44-v2", shared_x, hashlib.sha256).digest()
+    return conversation_key
+
+
+def get_message_keys(
+    conversation_key: bytes, nonce: bytes
+) -> tuple[bytes, bytes, bytes]:
+    """
+    Derive per-message keys from conversation_key and nonce using HKDF-expand.
+    Returns (chacha_key, chacha_nonce, hmac_key).
+    """
+    if len(conversation_key) != 32:
+        raise ValueError("invalid conversation_key length")
+    if len(nonce) != 32:
+        raise ValueError("invalid nonce length")
+
+    keys = HKDFExpand(
+        algorithm=hashes.SHA256(),
+        length=76,
+        info=nonce,
+    ).derive(conversation_key)
+
+    chacha_key = keys[0:32]
+    chacha_nonce = keys[32:44]
+    hmac_key = keys[44:76]
+    return chacha_key, chacha_nonce, hmac_key
+
+
+def calc_padded_len(unpadded_len: int) -> int:
+    """Calculate padded length using power-of-two chunking."""
+    if unpadded_len <= 0:
+        raise ValueError("invalid plaintext length")
+    if unpadded_len <= 32:
+        return 32
+    next_power = 1 << (math.floor(math.log2(unpadded_len - 1)) + 1)
+    if next_power <= 256:
+        chunk = 32
+    else:
+        chunk = next_power // 8
+    return chunk * (math.floor((unpadded_len - 1) / chunk) + 1)
+
+
+def _pad(plaintext: str) -> bytes:
+    """Convert plaintext string to padded byte array."""
+    unpadded = plaintext.encode("utf-8")
+    unpadded_len = len(unpadded)
+    if unpadded_len < MIN_PLAINTEXT_SIZE or unpadded_len > MAX_PLAINTEXT_SIZE:
+        raise ValueError(
+            f"invalid plaintext length: {unpadded_len} "
+            f"(must be {MIN_PLAINTEXT_SIZE}..{MAX_PLAINTEXT_SIZE})"
+        )
+    prefix = struct.pack(">H", unpadded_len)
+    padded_len = calc_padded_len(unpadded_len)
+    suffix = b"\x00" * (padded_len - unpadded_len)
+    return prefix + unpadded + suffix
+
+
+def _unpad(padded: bytes) -> str:
+    """Convert padded byte array back to plaintext string."""
+    unpadded_len = struct.unpack(">H", padded[0:2])[0]
+    unpadded = padded[2 : 2 + unpadded_len]
+    if (
+        unpadded_len == 0
+        or len(unpadded) != unpadded_len
+        or len(padded) != 2 + calc_padded_len(unpadded_len)
+    ):
+        raise ValueError("invalid padding")
+    return unpadded.decode("utf-8")
+
+
+def _hmac_aad(key: bytes, message: bytes, aad: bytes) -> bytes:
+    """HMAC-SHA256 with AAD: hmac(key, aad || message)."""
+    if len(aad) != 32:
+        raise ValueError("AAD associated data must be 32 bytes")
+    return hmac.new(key, aad + message, hashlib.sha256).digest()
+
+
+def _chacha20(key: bytes, nonce: bytes, data: bytes) -> bytes:
+    """ChaCha20 encrypt/decrypt with initial counter = 0."""
+    # cryptography's ChaCha20 takes a 16-byte nonce: 4-byte counter (LE) + 12-byte nonce
+    full_nonce = b"\x00\x00\x00\x00" + nonce
+    cipher = Cipher(algorithms.ChaCha20(key, full_nonce), mode=None)
+    encryptor = cipher.encryptor()
+    return encryptor.update(data) + encryptor.finalize()
+
+
+def _decode_payload(payload: str) -> tuple[bytes, bytes, bytes]:
+    """Decode base64 payload into (nonce, ciphertext, mac)."""
+    plen = len(payload)
+    if plen == 0 or payload[0] == "#":
+        raise ValueError("unknown version")
+    if plen < 132 or plen > 87472:
+        raise ValueError("invalid payload size")
+
+    data = base64.b64decode(payload)
+    dlen = len(data)
+    if dlen < 99 or dlen > 65603:
+        raise ValueError("invalid data size")
+
+    vers = data[0]
+    if vers != VERSION:
+        raise ValueError(f"unknown version {vers}")
+
+    nonce = data[1:33]
+    ciphertext = data[33 : dlen - 32]
+    mac = data[dlen - 32 : dlen]
+    return nonce, ciphertext, mac
+
+
+def encrypt(
+    plaintext: str,
+    conversation_key: bytes,
+    nonce: bytes | None = None,
+) -> str:
+    """
+    Encrypt plaintext using NIP-44 v2.
+    Returns base64-encoded payload.
+    """
+    if nonce is None:
+        nonce = secrets.token_bytes(32)
+    if len(nonce) != 32:
+        raise ValueError("invalid nonce length")
+
+    chacha_key, chacha_nonce, hmac_key = get_message_keys(conversation_key, nonce)
+    padded = _pad(plaintext)
+    ciphertext = _chacha20(chacha_key, chacha_nonce, padded)
+    mac = _hmac_aad(hmac_key, ciphertext, nonce)
+    return base64.b64encode(
+        struct.pack("B", VERSION) + nonce + ciphertext + mac
+    ).decode("ascii")
+
+
+def decrypt(payload: str, conversation_key: bytes) -> str:
+    """
+    Decrypt a NIP-44 v2 base64 payload.
+    Returns plaintext string.
+    """
+    nonce, ciphertext, mac = _decode_payload(payload)
+    chacha_key, chacha_nonce, hmac_key = get_message_keys(conversation_key, nonce)
+    calculated_mac = _hmac_aad(hmac_key, ciphertext, nonce)
+    if not hmac.compare_digest(calculated_mac, mac):
+        raise ValueError("invalid MAC")
+    padded_plaintext = _chacha20(chacha_key, chacha_nonce, ciphertext)
+    return _unpad(padded_plaintext)
diff --git a/nostr/nip59.py b/nostr/nip59.py
new file mode 100644
index 0000000..19cc718
--- /dev/null
+++ b/nostr/nip59.py
@@ -0,0 +1,231 @@
+"""
+NIP-59: Gift Wrap
+
+Three-layer protocol for metadata-protected messaging:
+  1. Rumor (unsigned event) — carries content, deniable if leaked
+  2. Seal (kind 13) — encrypts rumor, signed by author, no recipient metadata
+  3. Gift Wrap (kind 1059) — encrypts seal with ephemeral key, has recipient p-tag
+
+Reference: https://github.com/nostr-protocol/nips/blob/master/59.md
+
+## Bunker integration (aiolabs/nostrmarket#5)
+
+Merchant-identity layers (rumor's sender-pubkey + seal's encryption +
+seal's signature) route through the lnbits `NostrSigner` abstraction
+so the merchant's nsec stays in the bunker — never reaches this
+process. Specifically:
+
+- `create_seal` is async; takes a `sender_signer` instead of a
+  plaintext nsec. The seal's NIP-44 encrypt + Schnorr sign happen
+  via `await sender_signer.nip44_encrypt(...)` +
+  `await sender_signer.sign_event(...)` over the NIP-46 channel.
+- `unwrap_gift_wrap` + `unseal` are async; take a `recipient_signer`
+  and call `await recipient_signer.nip44_decrypt(...)` for each layer.
+
+The **ephemeral keypair layer** (`create_gift_wrap`) stays synchronous
++ local: the ephemeral nsec exists for the lifetime of one wrap and
+provides no merchant-identity capability, so there's no reason to
+involve the bunker. Generating it locally avoids one round-trip per
+DM.
+"""
+
+import json
+import secrets
+import time
+from typing import Optional
+
+import coincurve
+
+from .event import NostrEvent
+from .nip44 import decrypt as nip44_decrypt
+from .nip44 import encrypt as nip44_encrypt
+from .nip44 import get_conversation_key
+
+TWO_DAYS = 2 * 24 * 60 * 60
+
+
+def _random_past_timestamp() -> int:
+    """Generate a timestamp randomly in the past 0-2 days for metadata protection."""
+    return int(time.time()) - secrets.randbelow(TWO_DAYS)
+
+
+def _sign_event_local(event: NostrEvent, private_key_hex: str) -> NostrEvent:
+    """Compute event id and sign it locally with a privkey held in this
+    process. Used only for the ephemeral-keypair layer (gift wrap outer);
+    merchant-identity sign goes through the signer ABC instead."""
+    event.id = event.event_id
+    sk = coincurve.PrivateKey(bytes.fromhex(private_key_hex))
+    event.sig = sk.sign_schnorr(bytes.fromhex(event.id)).hex()
+    return event
+
+
+def _pubkey_from_privkey(private_key_hex: str) -> str:
+    """Derive x-only public key hex from private key hex."""
+    sk = coincurve.PrivateKey(bytes.fromhex(private_key_hex))
+    return sk.public_key.format(compressed=True)[1:].hex()
+
+
+def create_rumor(
+    pubkey: str,
+    content: str,
+    kind: int = 14,
+    tags: Optional[list[list[str]]] = None,
+    created_at: Optional[int] = None,
+) -> NostrEvent:
+    """
+    Create an unsigned rumor event.
+    The event has an id but no signature, making it deniable.
+    """
+    event = NostrEvent(
+        pubkey=pubkey,
+        created_at=created_at or int(time.time()),
+        kind=kind,
+        tags=tags or [],
+        content=content,
+    )
+    event.id = event.event_id
+    # sig intentionally left as None (unsigned)
+    return event
+
+
+async def create_seal(
+    rumor: NostrEvent,
+    sender_signer,
+    recipient_pubkey: str,
+) -> NostrEvent:
+    """
+    Create a kind 13 seal: encrypts the rumor for the recipient.
+    Signed by the sender. Tags are always empty.
+
+    Both crypto operations (NIP-44 encrypt + Schnorr sign) route
+    through the sender's `NostrSigner` (`sender_signer`) — the
+    plaintext nsec is never observable in this process.
+    """
+    encrypted_rumor = await sender_signer.nip44_encrypt(
+        rumor.stringify(), recipient_pubkey
+    )
+
+    seal = NostrEvent(
+        pubkey=sender_signer.pubkey,
+        created_at=_random_past_timestamp(),
+        kind=13,
+        tags=[],
+        content=encrypted_rumor,
+    )
+    # The signer fills id + sig (computed bunker-side).
+    signed = await sender_signer.sign_event(
+        {
+            "pubkey": seal.pubkey,
+            "created_at": seal.created_at,
+            "kind": seal.kind,
+            "tags": seal.tags,
+            "content": seal.content,
+        }
+    )
+    seal.id = signed["id"]
+    seal.sig = signed["sig"]
+    return seal
+
+
+def create_gift_wrap(
+    seal: NostrEvent,
+    recipient_pubkey: str,
+) -> NostrEvent:
+    """
+    Create a kind 1059 gift wrap: encrypts the seal with an ephemeral key.
+    The only public metadata is the recipient's p-tag.
+
+    Stays synchronous + local: the ephemeral nsec exists only for the
+    lifetime of one wrap and provides no merchant-identity capability,
+    so there's no point routing through the bunker (would add one NIP-46
+    round-trip per DM with zero security benefit).
+    """
+    ephemeral_privkey = secrets.token_bytes(32).hex()
+    ephemeral_pubkey = _pubkey_from_privkey(ephemeral_privkey)
+
+    conv_key = get_conversation_key(ephemeral_privkey, recipient_pubkey)
+    encrypted_seal = nip44_encrypt(seal.stringify(), conv_key)
+
+    wrap = NostrEvent(
+        pubkey=ephemeral_pubkey,
+        created_at=_random_past_timestamp(),
+        kind=1059,
+        tags=[["p", recipient_pubkey]],
+        content=encrypted_seal,
+    )
+    return _sign_event_local(wrap, ephemeral_privkey)
+
+
+async def unwrap_gift_wrap(
+    gift_wrap: NostrEvent,
+    recipient_signer,
+) -> NostrEvent:
+    """
+    Decrypt a kind 1059 gift wrap to reveal the inner seal.
+    Routes NIP-44 decrypt through the recipient's signer abstraction
+    so the recipient's nsec stays in the bunker.
+    """
+    seal_json = await recipient_signer.nip44_decrypt(
+        gift_wrap.content, gift_wrap.pubkey
+    )
+    return NostrEvent(**json.loads(seal_json))
+
+
+async def unseal(
+    seal: NostrEvent,
+    recipient_signer,
+) -> NostrEvent:
+    """
+    Decrypt a kind 13 seal to reveal the inner rumor.
+    Uses the recipient signer (their nsec stays in the bunker) and the
+    seal's pubkey (the sender). Validates that the rumor's pubkey
+    matches the seal's pubkey.
+    """
+    rumor_json = await recipient_signer.nip44_decrypt(seal.content, seal.pubkey)
+    rumor = NostrEvent(**json.loads(rumor_json))
+
+    if rumor.pubkey != seal.pubkey:
+        raise ValueError(
+            f"rumor pubkey ({rumor.pubkey}) does not match "
+            f"seal pubkey ({seal.pubkey})"
+        )
+    return rumor
+
+
+# --- Convenience functions ---
+
+
+async def wrap_message(
+    content: str,
+    sender_signer,
+    recipient_pubkey: str,
+    kind: int = 14,
+    tags: Optional[list[list[str]]] = None,
+) -> NostrEvent:
+    """
+    Full wrap pipeline: create rumor → seal → gift wrap.
+    Returns the gift wrap event ready to publish.
+
+    `sender_signer` is the sender merchant's `NostrSigner` (post-#5:
+    always a `RemoteBunkerSigner`). The merchant's nsec never leaves
+    the bunker.
+    """
+    rumor = create_rumor(sender_signer.pubkey, content, kind=kind, tags=tags)
+    seal = await create_seal(rumor, sender_signer, recipient_pubkey)
+    return create_gift_wrap(seal, recipient_pubkey)
+
+
+async def unwrap_message(
+    gift_wrap: NostrEvent,
+    recipient_signer,
+) -> NostrEvent:
+    """
+    Full unwrap pipeline: gift wrap → seal → rumor.
+    Returns the rumor with sender pubkey and plaintext content.
+
+    `recipient_signer` is the recipient merchant's `NostrSigner`. Both
+    NIP-44 decrypt layers (gift wrap → seal, seal → rumor) route
+    through the signer abstraction.
+    """
+    seal = await unwrap_gift_wrap(gift_wrap, recipient_signer)
+    return await unseal(seal, recipient_signer)
diff --git a/nostr/nostr_client.py b/nostr/nostr_client.py
index 967bc1b..dbc410e 100644
--- a/nostr/nostr_client.py
+++ b/nostr/nostr_client.py
@@ -1,6 +1,8 @@
 import asyncio
 import json
+import time
 from asyncio import Queue
+from collections import OrderedDict
 from threading import Thread
 from typing import Callable, List, Optional
 
@@ -12,6 +14,8 @@ from lnbits.helpers import encrypt_internal_message, urlsafe_short_hash
 
 from .event import NostrEvent
 
+MAX_SEEN_EVENTS = 1000
+
 
 class NostrClient:
     def __init__(self):
@@ -20,6 +24,8 @@ class NostrClient:
         self.ws: Optional[WebSocketApp] = None
         self.subscription_id = "nostrmarket-" + urlsafe_short_hash()[:32]
         self.running = False
+        self._seen_events: OrderedDict[str, None] = OrderedDict()
+        self.last_event_at: float = 0
 
     @property
     def is_websocket_connected(self):
@@ -64,11 +70,21 @@ class NostrClient:
                 logger.warning(ex)
                 await asyncio.sleep(60)
 
+    def is_duplicate_event(self, event_id: str) -> bool:
+        """Check if an event has been seen recently. Returns True if duplicate."""
+        if event_id in self._seen_events:
+            return True
+        self._seen_events[event_id] = None
+        if len(self._seen_events) > MAX_SEEN_EVENTS:
+            self._seen_events.popitem(last=False)
+        return False
+
     async def get_event(self):
         value = await self.recieve_event_queue.get()
         if isinstance(value, ValueError):
             logger.error(f"[NOSTRMARKET] ❌ Queue returned error: {value}")
             raise value
+        self.last_event_at = time.time()
         return value
 
     async def publish_nostr_event(self, e: NostrEvent):
@@ -134,13 +150,16 @@ class NostrClient:
             logger.debug(ex)
 
     def _filters_for_direct_messages(self, public_keys: List[str], since: int) -> List:
-        in_messages_filter = {"kinds": [4], "#p": public_keys}
-        out_messages_filter = {"kinds": [4], "authors": public_keys}
-        if since and since != 0:
-            in_messages_filter["since"] = since
-            out_messages_filter["since"] = since
-
-        return [in_messages_filter, out_messages_filter]
+        # NIP-17/NIP-59: subscribe to kind 1059 gift wraps addressed to our merchants.
+        # With gift wrapping, outgoing messages are self-wrapped (same p-tag filter).
+        #
+        # Do NOT apply `since` here. Per NIP-59, gift wraps use randomized past
+        # timestamps (up to 2 days back) to defeat metadata correlation, so a
+        # `since` derived from the latest DM in our DB will reject fresh wraps
+        # whose randomized created_at is older than that window. Server-side
+        # dedup + the client's is_duplicate_event() guard handle replays.
+        gift_wrap_filter: dict = {"kinds": [1059], "#p": public_keys}
+        return [gift_wrap_filter]
 
     def _filters_for_stall_events(self, public_keys: List[str], since: int) -> List:
         stall_filter = {"kinds": [30017], "authors": public_keys}
diff --git a/services.py b/services.py
index 3057292..444a9d5 100644
--- a/services.py
+++ b/services.py
@@ -3,8 +3,10 @@ import json
 from typing import List, Optional, Tuple
 
 from lnbits.bolt11 import decode
-from lnbits.core.crud import get_wallet
+from lnbits.core.crud import get_account, get_wallet
 from lnbits.core.services import create_invoice, websocket_updater
+from lnbits.core.signers import resolve_signer
+from lnbits.core.signers.base import NostrSigner, SignerError
 from loguru import logger
 
 from . import nostr_client
@@ -12,9 +14,11 @@ from .crud import (
     CustomerProfile,
     create_customer,
     create_direct_message,
+    create_merchant,
     create_order,
     create_product,
     create_stall,
+    create_zone,
     get_customer,
     get_last_direct_messages_created_at,
     get_last_product_update_time,
@@ -42,6 +46,7 @@ from .models import (
     DirectMessage,
     DirectMessageType,
     Merchant,
+    MerchantConfig,
     Nostrable,
     Order,
     OrderContact,
@@ -49,13 +54,16 @@ from .models import (
     OrderItem,
     OrderStatusUpdate,
     PartialDirectMessage,
+    PartialMerchant,
     PartialOrder,
     PaymentOption,
     PaymentRequest,
     Product,
     Stall,
+    Zone,
 )
 from .nostr.event import NostrEvent
+from .nostr.nip59 import unwrap_message, wrap_message
 
 
 async def create_new_order(
@@ -165,20 +173,173 @@ async def update_merchant_to_nostr(
     return merchant
 
 
+async def _resolve_merchant_signer(merchant: Merchant) -> NostrSigner:
+    """Resolve the lnbits NostrSigner for a merchant's owning account.
+
+    Post-#5 (aiolabs/nostrmarket#5), the merchant's nsec lives in the
+    bunker via the account's `signer_config`. No fast-path or caching
+    today — per-call lookup is fine for v1 throughput; if the events
+    extension or DM hot path becomes contended, revisit with a
+    process-local cache keyed on `merchant.user_id`.
+
+    Raises `SignerError` if the account can't be found or its signer
+    can't be resolved — callers should propagate, not silently skip,
+    so misconfigured rows surface loudly.
+    """
+    account = await get_account(merchant.user_id)
+    if account is None:
+        raise SignerError(
+            f"merchant {merchant.id[:8]} references missing account "
+            f"{merchant.user_id[:8]} — can't resolve signer"
+        )
+    return resolve_signer(account)
+
+
 async def sign_and_send_to_nostr(
     merchant: Merchant, n: Nostrable, delete=False
 ) -> NostrEvent:
+    """Sign + publish a Nostrable as the merchant's identity.
+
+    Signing routes through the merchant's account `NostrSigner` (post-#5).
+    The signer fills `id` + `sig` server-side (bunker for the
+    `RemoteBunkerSigner` case) — this function builds the unsigned dict
+    shape, hands it to the signer, and copies the result back onto the
+    `NostrEvent` instance for the publisher.
+    """
     event = (
         n.to_nostr_delete_event(merchant.public_key)
         if delete
         else n.to_nostr_event(merchant.public_key)
     )
-    event.sig = merchant.sign_hash(bytes.fromhex(event.id))
+
+    signer = await _resolve_merchant_signer(merchant)
+    signed = await signer.sign_event(
+        {
+            "pubkey": event.pubkey,
+            "created_at": event.created_at,
+            "kind": event.kind,
+            "tags": event.tags,
+            "content": event.content,
+        }
+    )
+    event.id = signed["id"]
+    event.sig = signed["sig"]
     await nostr_client.publish_nostr_event(event)
 
     return event
 
 
+async def provision_merchant(
+    user_id: str,
+    wallet_id: str,
+    public_key: str,
+    display_name: Optional[str] = None,
+    config: Optional[MerchantConfig] = None,
+) -> Merchant:
+    """
+    Provision a merchant with a default shipping zone and default stall,
+    and publish the stall to Nostr relays.
+
+    Post-aiolabs/nostrmarket#5: no `private_key` argument. The merchant
+    identity IS the lnbits account's identity (`public_key` parameter
+    must equal `account.pubkey` for the same `user_id`); signing routes
+    through the account's `NostrSigner` (`RemoteBunkerSigner` in the
+    target deployment). The merchant nsec lives in the bunker, never
+    server-side.
+
+    Single source of truth used by:
+    - LNbits user-creation hook (eager, on signup) — see
+      lnbits/core/services/users.py:_create_default_merchant
+    - nostrmarket views_api._auto_create_merchant (lazy, on first GET
+      /api/v1/merchant when a merchant is missing).
+
+    Idempotent on the merchant: if a merchant with this pubkey already
+    exists, returns it without recreating zone/stall.
+    """
+    existing = await get_merchant_by_pubkey(public_key)
+    if existing:
+        return existing
+
+    partial_merchant = PartialMerchant(
+        public_key=public_key,
+        config=config or MerchantConfig(),
+    )
+    merchant = await create_merchant(user_id, partial_merchant)
+
+    online_zone = Zone(
+        id=f"online-{merchant.public_key}",
+        name="Online",
+        currency="sat",
+        cost=0,
+        countries=["Free (digital)"],
+    )
+    await create_zone(merchant.id, online_zone)
+
+    raw_owner_name = display_name or "My"
+    owner_name = raw_owner_name[:1].upper() + raw_owner_name[1:]
+    default_stall = Stall(
+        wallet=wallet_id,
+        name=f"{owner_name}'s Store",
+        currency="sat",
+        shipping_zones=[online_zone],
+    )
+    default_stall = await create_stall(merchant.id, default_stall)
+
+    # Publish the kind 30017 stall event so customers' clients can resolve
+    # the stall name when they fetch products. Non-fatal on failure: a
+    # later product publish (or webapp self-heal) will retry.
+    #
+    # Fire-and-forget: `nostr_client.publish_nostr_event` has no per-relay
+    # deadline and will block indefinitely if every configured relay is
+    # unreachable (cf. aiolabs/nostrmarket#7). When `provision_merchant`
+    # is called from the eager signup hook (lnbits/core/services/users.py
+    # ::_create_default_merchant, aiolabs/lnbits#46), inline-awaiting that
+    # publish hangs the uvicorn worker on `POST /auth/register` forever.
+    # The DB rows we just wrote are sufficient to serve the wallet UI;
+    # the stall event_id gets backfilled when the publish completes (or
+    # stays NULL until a later resubscribe-driven republish lands it).
+    asyncio.create_task(
+        _publish_default_stall_background(merchant.id, merchant, default_stall)
+    )
+
+    return merchant
+
+
+# Generous bound: signing through the bunker can take 1–2 s on a cold
+# session, plus the relay publish itself. 30 s is well over both, and
+# the cap matters only when the relay set is unreachable.
+STALL_PUBLISH_TIMEOUT_S = 30.0
+
+
+async def _publish_default_stall_background(
+    merchant_id: str, merchant: Merchant, default_stall: Stall
+) -> None:
+    """Background helper for `provision_merchant`'s default-stall publish.
+
+    Bounded by `STALL_PUBLISH_TIMEOUT_S` so even a permanently-unreachable
+    relay set doesn't pin an asyncio task forever. Errors and timeouts are
+    logged at warning — never raised, since the caller scheduled-and-forgot.
+    """
+    try:
+        stall_event = await asyncio.wait_for(
+            sign_and_send_to_nostr(merchant, default_stall),
+            timeout=STALL_PUBLISH_TIMEOUT_S,
+        )
+        default_stall.event_id = stall_event.id
+        await update_stall(merchant_id, default_stall)
+    except asyncio.TimeoutError:
+        logger.warning(
+            f"[NOSTRMARKET] Default stall publish for merchant "
+            f"{merchant_id} timed out after {STALL_PUBLISH_TIMEOUT_S}s; "
+            f"event_id stays NULL until a later republish lands it"
+        )
+    except Exception as ex:
+        logger.warning(
+            f"[NOSTRMARKET] Failed to publish default stall for "
+            f"merchant {merchant_id}: {ex}"
+        )
+
+
 async def handle_order_paid(order_id: str, merchant_pubkey: str):
     try:
         order = await update_order_paid_status(order_id, True)
@@ -270,19 +431,37 @@ async def send_dm(
     other_pubkey: str,
     type_: int,
     dm_content: str,
-):
-    dm_event = merchant.build_dm_event(dm_content, other_pubkey)
+) -> DirectMessage:
+    # Post-#5: nsec stays in the bunker; both the to-recipient wrap and
+    # the to-self archival wrap route their seal-layer crypto through
+    # the merchant's NostrSigner.
+    signer = await _resolve_merchant_signer(merchant)
+
+    # Wrap message to recipient via NIP-59 gift wrap
+    gift_wrap = await wrap_message(
+        dm_content,
+        signer,
+        other_pubkey,
+    )
 
     dm = PartialDirectMessage(
-        event_id=dm_event.id,
-        event_created_at=dm_event.created_at,
+        event_id=gift_wrap.id,
+        event_created_at=gift_wrap.created_at,
         message=dm_content,
         public_key=other_pubkey,
         type=type_,
     )
     dm_reply = await create_direct_message(merchant.id, dm)
 
-    await nostr_client.publish_nostr_event(dm_event)
+    await nostr_client.publish_nostr_event(gift_wrap)
+
+    # Also wrap a copy to self for archival
+    self_wrap = await wrap_message(
+        dm_content,
+        signer,
+        merchant.public_key,
+    )
+    await nostr_client.publish_nostr_event(self_wrap)
 
     await websocket_updater(
         merchant.id,
@@ -295,6 +474,8 @@ async def send_dm(
         ),
     )
 
+    return dm_reply
+
 
 async def compute_products_new_quantity(
     merchant_id: str, product_ids: List[str], items: List[OrderItem]
@@ -332,11 +513,15 @@ async def process_nostr_message(msg: str):
                 return
             _, event = rest
             event = NostrEvent(**event)
-            
+
+            # Deduplicate events (overlap resubscriptions may deliver duplicates)
+            if nostr_client.is_duplicate_event(event.id):
+                return
+
             if event.kind == 0:
                 await _handle_customer_profile_update(event)
-            elif event.kind == 4:
-                await _handle_nip04_message(event)
+            elif event.kind == 1059:
+                await _handle_gift_wrap(event)
             elif event.kind == 30017:
                 await _handle_stall(event)
             elif event.kind == 30018:
@@ -430,30 +615,42 @@ async def extract_customer_order_from_dm(
     return order
 
 
-async def _handle_nip04_message(event: NostrEvent):
-    
+async def _handle_gift_wrap(event: NostrEvent):
+    """Handle an incoming kind 1059 gift wrap event (NIP-59/NIP-17)."""
+
     p_tags = event.tag_values("p")
-    
-    # PRIORITY 1: Check if any recipient (p_tag) is a merchant → incoming message TO merchant
-    for p_tag in p_tags:
-        if p_tag:
-            potential_merchant = await get_merchant_by_pubkey(p_tag)
-            if potential_merchant:
-                clear_text_msg = potential_merchant.decrypt_message(event.content, event.pubkey)
-                await _handle_incoming_dms(event, potential_merchant, clear_text_msg)
-                return  # IMPORTANT: Return immediately to prevent double processing
-    
-    # PRIORITY 2: If no recipient merchant found, check if sender is a merchant → outgoing message FROM merchant
-    sender_merchant = await get_merchant_by_pubkey(event.pubkey)
-    if sender_merchant:
-        assert len(event.tag_values("p")) != 0, "Outgoing message has no 'p' tag"
-        clear_text_msg = sender_merchant.decrypt_message(
-            event.content, event.tag_values("p")[0]
+    if not p_tags:
+        logger.warning(f"[NOSTRMARKET] ⚠️ Gift wrap has no p-tag: {event.id}")
+        return
+
+    # The p-tag identifies the recipient of the gift wrap
+    recipient_pubkey = p_tags[0]
+    merchant = await get_merchant_by_pubkey(recipient_pubkey)
+    if not merchant:
+        logger.warning(
+            f"[NOSTRMARKET] ⚠️ No merchant found for gift wrap recipient: {recipient_pubkey}"
         )
-        await _handle_outgoing_dms(event, sender_merchant, clear_text_msg)
-        return  # IMPORTANT: Return immediately
-    
-    # No merchant found in either direction
+        return
+
+    try:
+        recipient_signer = await _resolve_merchant_signer(merchant)
+        rumor = await unwrap_message(event, recipient_signer)
+    except Exception as ex:
+        logger.error(f"[NOSTRMARKET] ❌ Failed to unwrap gift wrap {event.id}: {ex}")
+        return
+
+    sender_pubkey = rumor.pubkey
+
+    if sender_pubkey == merchant.public_key:
+        # This is a self-addressed wrap (outgoing message archive)
+        # Extract the actual recipient from the rumor's p-tags
+        rumor_p_tags = rumor.tag_values("p")
+        if rumor_p_tags:
+            await _handle_outgoing_dms(rumor, merchant, rumor.content)
+        return
+
+    # Incoming message from a customer
+    await _handle_incoming_dms(rumor, merchant, rumor.content)
 
 
 async def _handle_incoming_dms(
@@ -553,16 +750,21 @@ async def _persist_dm(
 async def reply_to_structured_dm(
     merchant: Merchant, customer_pubkey: str, dm_type: int, dm_reply: str
 ):
-    dm_event = merchant.build_dm_event(dm_reply, customer_pubkey)
+    signer = await _resolve_merchant_signer(merchant)
+    gift_wrap = await wrap_message(
+        dm_reply,
+        signer,
+        customer_pubkey,
+    )
     dm = PartialDirectMessage(
-        event_id=dm_event.id,
-        event_created_at=dm_event.created_at,
+        event_id=gift_wrap.id,
+        event_created_at=gift_wrap.created_at,
         message=dm_reply,
         public_key=customer_pubkey,
         type=dm_type,
     )
     await create_direct_message(merchant.id, dm)
-    await nostr_client.publish_nostr_event(dm_event)
+    await nostr_client.publish_nostr_event(gift_wrap)
 
     await websocket_updater(
         merchant.id,
diff --git a/static/components/merchant-tab.js b/static/components/merchant-tab.js
index 9595c86..d993bd4 100644
--- a/static/components/merchant-tab.js
+++ b/static/components/merchant-tab.js
@@ -19,9 +19,7 @@ window.app.component('merchant-tab', {
     'merchant-deleted',
     'toggle-merchant-state',
     'restart-nostr-connection',
-    'profile-updated',
-    'import-key',
-    'generate-key'
+    'profile-updated'
   ],
   data: function () {
     return {
diff --git a/static/js/index.js b/static/js/index.js
index b10220c..f5d2e62 100644
--- a/static/js/index.js
+++ b/static/js/index.js
@@ -13,19 +13,6 @@ window.app = Vue.createApp({
       orderPubkey: null,
       showKeys: false,
       stallCount: 0,
-      importKeyDialog: {
-        show: false,
-        data: {
-          privateKey: null
-        }
-      },
-      generateKeyDialog: {
-        show: false,
-        privateKey: null,
-        nsec: null,
-        npub: null,
-        showNsec: false
-      },
       wsConnection: null,
       nostrStatus: {
         connected: false,
@@ -49,22 +36,29 @@ window.app = Vue.createApp({
     }
   },
   methods: {
-    generateKeys: async function () {
-      // No longer need to generate keys here - the backend will use user's existing keypairs
-      await this.createMerchant()
-    },
-    importKeys: async function () {
-      this.importKeyDialog.show = false
-      // Import keys functionality removed since we use user's native keypairs
-      // Show a message that this is no longer needed
-      this.$q.notify({
-        type: 'info',
-        message: 'Merchants now use your account Nostr keys automatically. Key import is no longer needed.',
-        timeout: 3000
-      })
-    },
-    showImportKeysDialog: async function () {
-      this.importKeyDialog.show = true
+    migrateKeys: async function () {
+      LNbits.utils
+        .confirmDialog(
+          'This will update your merchant to use your current account Nostr keypair ' +
+            'and republish all stalls and products under the new identity. ' +
+            'Existing orders and messages are preserved. Continue?'
+        )
+        .onOk(async () => {
+          try {
+            const {data} = await LNbits.api.request(
+              'POST',
+              `/nostrmarket/api/v1/merchant/${this.merchant.id}/migrate-keys`,
+              this.g.user.wallets[0].adminkey
+            )
+            this.merchant = data
+            this.$q.notify({
+              type: 'positive',
+              message: 'Merchant keys migrated and stalls republished'
+            })
+          } catch (error) {
+            LNbits.utils.notifyApiError(error)
+          }
+        })
     },
     toggleShowKeys: function () {
       this.showKeys = !this.showKeys
@@ -379,7 +373,11 @@ window.app = Vue.createApp({
     }
   },
   created: async function () {
-    await this.getMerchant()
+    const merchant = await this.getMerchant()
+    if (!merchant) {
+      // Auto-create merchant using the account's existing Nostr keypair
+      await this.createMerchant()
+    }
     await this.checkNostrStatus()
     setInterval(async () => {
       if (
diff --git a/tasks.py b/tasks.py
index 774951f..c147936 100644
--- a/tasks.py
+++ b/tasks.py
@@ -1,4 +1,5 @@
 import asyncio
+import time
 from asyncio import Queue
 
 from lnbits.core.models import Payment
@@ -9,9 +10,13 @@ from .nostr.nostr_client import NostrClient
 from .services import (
     handle_order_paid,
     process_nostr_message,
+    resubscribe_to_all_merchants,
     subscribe_to_all_merchants,
 )
 
+HEALTH_CHECK_INTERVAL = 30  # seconds between health checks
+STALE_THRESHOLD = 120  # seconds without events before resubscribing
+
 
 async def wait_for_paid_invoices():
     invoice_queue = Queue()
@@ -35,17 +40,38 @@ async def on_invoice_paid(payment: Payment) -> None:
 
 
 async def wait_for_nostr_events(nostr_client: NostrClient):
-    logger.info("[NOSTRMARKET DEBUG] Starting wait_for_nostr_events task")
+    logger.info("[NOSTRMARKET] Starting wait_for_nostr_events task")
     while True:
         try:
-            logger.info("[NOSTRMARKET DEBUG] Subscribing to all merchants...")
+            logger.info("[NOSTRMARKET] Subscribing to all merchants...")
             await subscribe_to_all_merchants()
 
             while True:
-                logger.debug("[NOSTRMARKET DEBUG] Waiting for nostr event...")
                 message = await nostr_client.get_event()
-                logger.info(f"[NOSTRMARKET DEBUG] Received event from nostr_client: {message[:100]}...")
                 await process_nostr_message(message)
         except Exception as e:
-            logger.warning(f"[NOSTRMARKET DEBUG] Subscription failed. Will retry in 10 seconds: {e}")
+            logger.warning(f"[NOSTRMARKET] Subscription failed. Retrying in 10s: {e}")
             await asyncio.sleep(10)
+
+
+async def subscription_health_monitor(nostr_client: NostrClient):
+    """
+    Periodically check if events are flowing. If no events have been
+    received for STALE_THRESHOLD seconds, force a resubscription with
+    overlap to catch any missed events.
+    """
+    logger.info("[NOSTRMARKET] Starting subscription health monitor")
+    while True:
+        await asyncio.sleep(HEALTH_CHECK_INTERVAL)
+        try:
+            if not nostr_client.is_websocket_connected:
+                continue
+
+            elapsed = time.time() - nostr_client.last_event_at
+            if nostr_client.last_event_at > 0 and elapsed > STALE_THRESHOLD:
+                logger.warning(
+                    f"[NOSTRMARKET] ⚠️ No events for {elapsed:.0f}s, resubscribing..."
+                )
+                await resubscribe_to_all_merchants()
+        except Exception as e:
+            logger.error(f"[NOSTRMARKET] Health monitor error: {e}")
diff --git a/templates/nostrmarket/components/merchant-tab.html b/templates/nostrmarket/components/merchant-tab.html
index 8ce6624..497478a 100644
--- a/templates/nostrmarket/components/merchant-tab.html
+++ b/templates/nostrmarket/components/merchant-tab.html
@@ -64,25 +64,6 @@
                     </q-btn>
                   </q-item-section>
                 </q-item>
-                <q-separator></q-separator>
-                <q-item clickable v-close-popup @click="$emit('import-key')">
-                  <q-item-section avatar>
-                    <q-icon name="vpn_key" color="primary"></q-icon>
-                  </q-item-section>
-                  <q-item-section>
-                    <q-item-label>Import Existing Key</q-item-label>
-                    <q-item-label caption>Use an existing nsec</q-item-label>
-                  </q-item-section>
-                </q-item>
-                <q-item clickable v-close-popup @click="$emit('generate-key')">
-                  <q-item-section avatar>
-                    <q-icon name="add" color="primary"></q-icon>
-                  </q-item-section>
-                  <q-item-section>
-                    <q-item-label>Generate New Key</q-item-label>
-                    <q-item-label caption>Create a fresh nsec</q-item-label>
-                  </q-item-section>
-                </q-item>
               </q-list>
             </q-btn-dropdown>
             <q-btn
diff --git a/templates/nostrmarket/index.html b/templates/nostrmarket/index.html
index 949f8fe..ee3460c 100644
--- a/templates/nostrmarket/index.html
+++ b/templates/nostrmarket/index.html
@@ -3,6 +3,26 @@
 <div class="row q-col-gutter-md">
   <div class="col-12 col-md-7 col-lg-8 q-gutter-y-md">
     <div v-if="merchant && merchant.id">
+      <q-banner
+        v-if="merchant.config && merchant.config.key_mismatch"
+        class="bg-warning text-white q-mb-md"
+        rounded
+      >
+        <template v-slot:avatar>
+          <q-icon name="warning" color="white"></q-icon>
+        </template>
+        Your account Nostr keypair has changed since this merchant was created.
+        The merchant is still using the old key. Migrate to republish your
+        stalls and products under the new identity.
+        <template v-slot:action>
+          <q-btn
+            flat
+            color="white"
+            label="Migrate Keys"
+            @click="migrateKeys"
+          ></q-btn>
+        </template>
+      </q-banner>
       <q-card>
         <div class="row items-center no-wrap">
           <q-tabs
@@ -82,8 +102,6 @@
               @merchant-deleted="handleMerchantDeleted"
               @toggle-merchant-state="toggleMerchantState"
               @restart-nostr-connection="restartNostrConnection"
-              @import-key="showImportKeysDialog"
-              @generate-key="generateKeys"
               @profile-updated="getMerchant"
             ></merchant-tab>
           </q-tab-panel>
@@ -124,58 +142,9 @@
       </q-card>
     </div>
     <q-card v-else>
-      <q-card-section>
-        <span class="text-h4">Welcome to Nostr Market!</span><br />
-        In Nostr Market, merchant and customer communicate via NOSTR relays, so
-        loss of money, product information, and reputation become far less
-        likely if attacked.
-      </q-card-section>
-      <q-card-section>
-        <span class="text-h4">Terms</span><br />
-        <ul>
-          <li>
-            <span class="text-bold">merchant</span> - seller of products with
-            NOSTR key-pair
-          </li>
-          <li>
-            <span class="text-bold">customer</span> - buyer of products with
-            NOSTR key-pair
-          </li>
-          <li>
-            <span class="text-bold">product</span> - item for sale by the
-            merchant
-          </li>
-          <li>
-            <span class="text-bold">stall</span> - list of products controlled
-            by merchant (a merchant can have multiple stalls)
-          </li>
-          <li>
-            <span class="text-bold">marketplace</span> - clientside software for
-            searching stalls and purchasing products
-          </li>
-        </ul>
-      </q-card-section>
-      <q-card-section>
-        <div class="row">
-          <div class="col-12">
-            <q-btn
-              @click="showImportKeysDialog"
-              label="Import Key"
-              color="primary"
-              class="float-left"
-            >
-              <q-tooltip> Use an existing private key (hex or npub) </q-tooltip>
-            </q-btn>
-            <q-btn
-              label="Generate New Key"
-              color="green"
-              @click="generateKeys"
-              class="float-right"
-            >
-              <q-tooltip> A new key pair will be generated for you </q-tooltip>
-            </q-btn>
-          </div>
-        </div>
+      <q-card-section class="text-center q-pa-xl">
+        <q-spinner color="primary" size="3em" class="q-mb-md"></q-spinner>
+        <div class="text-h6">Setting up Nostr Market...</div>
       </q-card-section>
     </q-card>
   </div>
@@ -396,89 +365,6 @@
     </div>
   </div>
 
-  <div>
-    <q-dialog v-model="importKeyDialog.show" position="top">
-      <q-card class="q-pa-lg q-pt-xl" style="width: 500px">
-        <q-form @submit="importKeys" class="q-gutter-md">
-          <q-input
-            filled
-            dense
-            v-model.trim="importKeyDialog.data.privateKey"
-            label="Private Key (hex or nsec)"
-          ></q-input>
-          <div class="row q-mt-lg">
-            <q-btn
-              unelevated
-              color="primary"
-              :disable="!importKeyDialog.data.privateKey"
-              type="submit"
-              >Import</q-btn
-            >
-            <q-btn v-close-popup flat color="grey" class="q-ml-auto"
-              >Cancel</q-btn
-            >
-          </div>
-        </q-form>
-      </q-card>
-    </q-dialog>
-  </div>
-
-  <!-- Generate Key Dialog -->
-  <q-dialog v-model="generateKeyDialog.show" position="top">
-    <q-card class="q-pa-lg q-pt-xl" style="width: 500px">
-      <div class="text-h6 q-mb-md">Generate New Key</div>
-      <div class="q-mb-md">
-        <div class="text-subtitle2 q-mb-xs">Public Key (npub)</div>
-        <q-input :model-value="generateKeyDialog.npub" readonly dense outlined>
-          <template v-slot:append>
-            <q-btn
-              flat
-              dense
-              icon="content_copy"
-              @click="copyText(generateKeyDialog.npub, 'npub copied!')"
-            ></q-btn>
-          </template>
-        </q-input>
-      </div>
-      <div class="q-mb-md">
-        <div class="text-subtitle2 q-mb-xs text-warning">
-          <q-icon name="warning" size="xs"></q-icon>
-          Private Key (nsec)
-        </div>
-        <q-input
-          :model-value="generateKeyDialog.showNsec ? generateKeyDialog.nsec : '••••••••••••••••••••••••••••••••••••••••••••••'"
-          readonly
-          dense
-          outlined
-        >
-          <template v-slot:append>
-            <q-btn
-              flat
-              dense
-              :icon="generateKeyDialog.showNsec ? 'visibility_off' : 'visibility'"
-              @click="generateKeyDialog.showNsec = !generateKeyDialog.showNsec"
-            ></q-btn>
-            <q-btn
-              flat
-              dense
-              icon="content_copy"
-              @click="copyText(generateKeyDialog.nsec, 'nsec copied! Keep it safe!')"
-            ></q-btn>
-          </template>
-        </q-input>
-        <div class="text-caption text-negative q-mt-xs">
-          <q-icon name="error" size="xs"></q-icon>
-          Never share your private key!
-        </div>
-      </div>
-      <div class="row q-mt-lg">
-        <q-btn unelevated color="primary" @click="confirmGenerateKey"
-          >Create Merchant</q-btn
-        >
-        <q-btn v-close-popup flat color="grey" class="q-ml-auto">Cancel</q-btn>
-      </div>
-    </q-card>
-  </q-dialog>
 </div>
 {% endblock%}{% block scripts %} {{ window_vars(user) }}
 
diff --git a/tests/conftest.py b/tests/conftest.py
new file mode 100644
index 0000000..22ffb83
--- /dev/null
+++ b/tests/conftest.py
@@ -0,0 +1,27 @@
+"""
+Stub out the nostrmarket root package and all LNbits dependencies so that
+nostr/* unit tests can run without the full LNbits environment.
+
+pytest walks up from tests/ and tries to import the parent __init__.py,
+which pulls in fastapi, lnbits, websocket, etc. We preemptively register
+the parent package as a simple module so that import never happens.
+"""
+
+import sys
+import types
+from pathlib import Path
+
+# Register 'nostrmarket' as an already-imported namespace package
+# pointing at the extension root, so pytest doesn't try to exec __init__.py
+_ext_root = Path(__file__).resolve().parent.parent
+_pkg = types.ModuleType("nostrmarket")
+_pkg.__path__ = [str(_ext_root)]
+_pkg.__package__ = "nostrmarket"
+sys.modules["nostrmarket"] = _pkg
+
+# Also ensure the nostr subpackage is importable
+_nostr_dir = _ext_root / "nostr"
+_nostr_pkg = types.ModuleType("nostrmarket.nostr")
+_nostr_pkg.__path__ = [str(_nostr_dir)]
+_nostr_pkg.__package__ = "nostrmarket.nostr"
+sys.modules["nostrmarket.nostr"] = _nostr_pkg
diff --git a/tests/test_nip44.py b/tests/test_nip44.py
new file mode 100644
index 0000000..3e767a6
--- /dev/null
+++ b/tests/test_nip44.py
@@ -0,0 +1,139 @@
+"""Tests for NIP-44 v2 encryption against official spec test vectors."""
+
+import coincurve
+import pytest
+
+from nostr.nip44 import (
+    calc_padded_len,
+    decrypt,
+    encrypt,
+    get_conversation_key,
+    get_message_keys,
+)
+
+
+def pubkey_from_secret(secret_hex: str) -> str:
+    """Derive x-only public key hex from secret key hex."""
+    sk = coincurve.PrivateKey(bytes.fromhex(secret_hex))
+    return sk.public_key.format(compressed=True)[1:].hex()
+
+
+# --- Test vector from NIP-44 spec ---
+
+SPEC_VECTOR = {
+    "sec1": "0000000000000000000000000000000000000000000000000000000000000001",
+    "sec2": "0000000000000000000000000000000000000000000000000000000000000002",
+    "conversation_key": "c41c775356fd92eadc63ff5a0dc1da211b268cbea22316767095b2871ea1412d",
+    "nonce": "0000000000000000000000000000000000000000000000000000000000000001",
+    "plaintext": "a",
+    "payload": "AgAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAABee0G5VSK0/9YypIObAtDKfYEAjD35uVkHyB0F4DwrcNaCXlCWZKaArsGrY6M9wnuTMxWfp1RTN9Xga8no+kF5Vsb",
+}
+
+
+class TestConversationKey:
+    def test_spec_vector(self):
+        pub2 = pubkey_from_secret(SPEC_VECTOR["sec2"])
+        key = get_conversation_key(SPEC_VECTOR["sec1"], pub2)
+        assert key.hex() == SPEC_VECTOR["conversation_key"]
+
+    def test_symmetric(self):
+        """conv(a, B) == conv(b, A)"""
+        pub1 = pubkey_from_secret(SPEC_VECTOR["sec1"])
+        pub2 = pubkey_from_secret(SPEC_VECTOR["sec2"])
+        key_ab = get_conversation_key(SPEC_VECTOR["sec1"], pub2)
+        key_ba = get_conversation_key(SPEC_VECTOR["sec2"], pub1)
+        assert key_ab == key_ba
+
+
+class TestMessageKeys:
+    def test_returns_correct_lengths(self):
+        conv_key = bytes.fromhex(SPEC_VECTOR["conversation_key"])
+        nonce = bytes.fromhex(SPEC_VECTOR["nonce"])
+        chacha_key, chacha_nonce, hmac_key = get_message_keys(conv_key, nonce)
+        assert len(chacha_key) == 32
+        assert len(chacha_nonce) == 12
+        assert len(hmac_key) == 32
+
+    def test_rejects_bad_key_length(self):
+        with pytest.raises(ValueError):
+            get_message_keys(b"\x00" * 16, b"\x00" * 32)
+
+    def test_rejects_bad_nonce_length(self):
+        with pytest.raises(ValueError):
+            get_message_keys(b"\x00" * 32, b"\x00" * 16)
+
+
+class TestPadding:
+    @pytest.mark.parametrize(
+        "unpadded,expected",
+        [
+            (1, 32),
+            (2, 32),
+            (31, 32),
+            (32, 32),
+            (33, 64),
+            (64, 64),
+            (65, 96),
+            (256, 256),
+            (257, 320),
+            (1024, 1024),
+            (65535, 65536),
+        ],
+    )
+    def test_calc_padded_len(self, unpadded, expected):
+        assert calc_padded_len(unpadded) == expected
+
+    def test_rejects_zero(self):
+        with pytest.raises(ValueError):
+            calc_padded_len(0)
+
+
+class TestEncryptDecrypt:
+    def test_spec_vector(self):
+        conv_key = bytes.fromhex(SPEC_VECTOR["conversation_key"])
+        nonce = bytes.fromhex(SPEC_VECTOR["nonce"])
+        payload = encrypt(SPEC_VECTOR["plaintext"], conv_key, nonce)
+        assert payload == SPEC_VECTOR["payload"]
+
+    def test_spec_vector_decrypt(self):
+        conv_key = bytes.fromhex(SPEC_VECTOR["conversation_key"])
+        plaintext = decrypt(SPEC_VECTOR["payload"], conv_key)
+        assert plaintext == SPEC_VECTOR["plaintext"]
+
+    def test_round_trip_short(self):
+        pub2 = pubkey_from_secret(SPEC_VECTOR["sec2"])
+        conv_key = get_conversation_key(SPEC_VECTOR["sec1"], pub2)
+        msg = "x"
+        assert decrypt(encrypt(msg, conv_key), conv_key) == msg
+
+    def test_round_trip_long(self):
+        pub2 = pubkey_from_secret(SPEC_VECTOR["sec2"])
+        conv_key = get_conversation_key(SPEC_VECTOR["sec1"], pub2)
+        msg = "A" * 65535
+        assert decrypt(encrypt(msg, conv_key), conv_key) == msg
+
+    def test_round_trip_unicode(self):
+        pub2 = pubkey_from_secret(SPEC_VECTOR["sec2"])
+        conv_key = get_conversation_key(SPEC_VECTOR["sec1"], pub2)
+        msg = "hello world! \U0001f680\U0001f30e\U0001f4ac"
+        assert decrypt(encrypt(msg, conv_key), conv_key) == msg
+
+    def test_tampered_mac_rejected(self):
+        conv_key = bytes.fromhex(SPEC_VECTOR["conversation_key"])
+        payload = SPEC_VECTOR["payload"]
+        tampered = payload[:-1] + ("a" if payload[-1] != "a" else "b")
+        with pytest.raises(ValueError, match="invalid MAC"):
+            decrypt(tampered, conv_key)
+
+    def test_empty_plaintext_rejected(self):
+        conv_key = bytes.fromhex(SPEC_VECTOR["conversation_key"])
+        with pytest.raises(ValueError, match="invalid plaintext length"):
+            encrypt("", conv_key)
+
+    def test_unknown_version_rejected(self):
+        with pytest.raises(ValueError, match="unknown version"):
+            decrypt("#invalid", bytes(32))
+
+    def test_short_payload_rejected(self):
+        with pytest.raises(ValueError, match="invalid payload size"):
+            decrypt("AAAA", bytes(32))
diff --git a/tests/test_nip59.py b/tests/test_nip59.py
new file mode 100644
index 0000000..5751990
--- /dev/null
+++ b/tests/test_nip59.py
@@ -0,0 +1,258 @@
+"""Tests for NIP-59 gift wrap protocol.
+
+Post-aiolabs/nostrmarket#5: the merchant-identity crypto operations
+(`create_seal`, `unseal`, `unwrap_gift_wrap`, `wrap_message`,
+`unwrap_message`) are async + take a `NostrSigner`-shaped object
+instead of a raw privkey. These tests use a local-privkey-backed
+fake signer so the NIP-59 plumbing can be tested in isolation —
+the real runtime uses `RemoteBunkerSigner` against nsecbunkerd.
+"""
+
+import json
+import time
+
+import coincurve
+import pytest
+
+from nostr.event import NostrEvent
+from nostr.nip44 import decrypt as _nip44_decrypt
+from nostr.nip44 import encrypt as _nip44_encrypt
+from nostr.nip44 import get_conversation_key
+from nostr.nip59 import (
+    create_gift_wrap,
+    create_rumor,
+    create_seal,
+    unseal,
+    unwrap_gift_wrap,
+    unwrap_message,
+    wrap_message,
+)
+
+
+def _generate_keypair() -> tuple[str, str]:
+    """Generate a (privkey_hex, pubkey_hex) pair."""
+    sk = coincurve.PrivateKey()
+    privkey = sk.secret.hex()
+    pubkey = sk.public_key.format(compressed=True)[1:].hex()
+    return privkey, pubkey
+
+
+class _LocalSignerStub:
+    """Stand-in for the lnbits `NostrSigner` ABC backed by a held privkey.
+
+    Provides just the surface the NIP-59 functions touch:
+    `pubkey`, `nip44_encrypt`, `nip44_decrypt`, `sign_event`. Useful for
+    unit-testing the NIP-59 plumbing without involving a bunker — the
+    crypto is identical, only the dispatch boundary differs.
+    """
+
+    def __init__(self, privkey_hex: str):
+        self._privkey = privkey_hex
+        sk = coincurve.PrivateKey(bytes.fromhex(privkey_hex))
+        self.pubkey = sk.public_key.format(compressed=True)[1:].hex()
+
+    async def nip44_encrypt(self, plaintext: str, peer_pubkey_hex: str) -> str:
+        return _nip44_encrypt(
+            plaintext, get_conversation_key(self._privkey, peer_pubkey_hex)
+        )
+
+    async def nip44_decrypt(self, ciphertext: str, peer_pubkey_hex: str) -> str:
+        return _nip44_decrypt(
+            ciphertext, get_conversation_key(self._privkey, peer_pubkey_hex)
+        )
+
+    async def sign_event(self, unsigned: dict) -> dict:
+        evt = NostrEvent(
+            pubkey=unsigned["pubkey"],
+            created_at=unsigned["created_at"],
+            kind=unsigned["kind"],
+            tags=unsigned["tags"],
+            content=unsigned["content"],
+        )
+        evt.id = evt.event_id
+        sk = coincurve.PrivateKey(bytes.fromhex(self._privkey))
+        sig = sk.sign_schnorr(bytes.fromhex(evt.id)).hex()
+        return {**unsigned, "id": evt.id, "sig": sig}
+
+
+SENDER_PRIV, SENDER_PUB = _generate_keypair()
+RECIPIENT_PRIV, RECIPIENT_PUB = _generate_keypair()
+SENDER_SIGNER = _LocalSignerStub(SENDER_PRIV)
+RECIPIENT_SIGNER = _LocalSignerStub(RECIPIENT_PRIV)
+
+
+class TestCreateRumor:
+    def test_has_id_but_no_sig(self):
+        rumor = create_rumor(SENDER_PUB, "hello", kind=14)
+        assert rumor.id != ""
+        assert rumor.sig is None
+
+    def test_kind_and_content(self):
+        rumor = create_rumor(SENDER_PUB, "test message", kind=14, tags=[["p", RECIPIENT_PUB]])
+        assert rumor.kind == 14
+        assert rumor.content == "test message"
+        assert rumor.pubkey == SENDER_PUB
+        assert ["p", RECIPIENT_PUB] in rumor.tags
+
+    def test_custom_timestamp(self):
+        ts = 1700000000
+        rumor = create_rumor(SENDER_PUB, "hello", created_at=ts)
+        assert rumor.created_at == ts
+
+
+class TestCreateSeal:
+    @pytest.mark.asyncio
+    async def test_kind_13_with_empty_tags(self):
+        rumor = create_rumor(SENDER_PUB, "hello")
+        seal = await create_seal(rumor, SENDER_SIGNER, RECIPIENT_PUB)
+        assert seal.kind == 13
+        assert seal.tags == []
+        assert seal.pubkey == SENDER_PUB
+
+    @pytest.mark.asyncio
+    async def test_is_signed(self):
+        rumor = create_rumor(SENDER_PUB, "hello")
+        seal = await create_seal(rumor, SENDER_SIGNER, RECIPIENT_PUB)
+        assert seal.sig is not None
+        assert len(seal.sig) == 128  # 64 bytes hex
+
+    @pytest.mark.asyncio
+    async def test_content_is_encrypted(self):
+        rumor = create_rumor(SENDER_PUB, "hello")
+        seal = await create_seal(rumor, SENDER_SIGNER, RECIPIENT_PUB)
+        # Content should be base64 NIP-44 payload, not plaintext JSON
+        assert "hello" not in seal.content
+
+    @pytest.mark.asyncio
+    async def test_timestamp_is_randomized(self):
+        rumor = create_rumor(SENDER_PUB, "hello")
+        seal = await create_seal(rumor, SENDER_SIGNER, RECIPIENT_PUB)
+        now = int(time.time())
+        # Seal timestamp should be in the past (up to 2 days)
+        assert seal.created_at <= now
+        assert seal.created_at >= now - (2 * 24 * 60 * 60 + 10)
+
+
+class TestCreateGiftWrap:
+    @pytest.mark.asyncio
+    async def test_kind_1059_with_p_tag(self):
+        rumor = create_rumor(SENDER_PUB, "hello")
+        seal = await create_seal(rumor, SENDER_SIGNER, RECIPIENT_PUB)
+        wrap = create_gift_wrap(seal, RECIPIENT_PUB)
+        assert wrap.kind == 1059
+        assert ["p", RECIPIENT_PUB] in wrap.tags
+
+    @pytest.mark.asyncio
+    async def test_uses_ephemeral_key(self):
+        rumor = create_rumor(SENDER_PUB, "hello")
+        seal = await create_seal(rumor, SENDER_SIGNER, RECIPIENT_PUB)
+        wrap = create_gift_wrap(seal, RECIPIENT_PUB)
+        # Gift wrap pubkey should be neither sender nor recipient
+        assert wrap.pubkey != SENDER_PUB
+        assert wrap.pubkey != RECIPIENT_PUB
+
+    @pytest.mark.asyncio
+    async def test_different_wraps_have_different_ephemeral_keys(self):
+        rumor = create_rumor(SENDER_PUB, "hello")
+        seal = await create_seal(rumor, SENDER_SIGNER, RECIPIENT_PUB)
+        wrap1 = create_gift_wrap(seal, RECIPIENT_PUB)
+        wrap2 = create_gift_wrap(seal, RECIPIENT_PUB)
+        assert wrap1.pubkey != wrap2.pubkey
+
+
+class TestUnwrap:
+    @pytest.mark.asyncio
+    async def test_unwrap_gift_wrap_returns_seal(self):
+        rumor = create_rumor(SENDER_PUB, "hello")
+        seal = await create_seal(rumor, SENDER_SIGNER, RECIPIENT_PUB)
+        wrap = create_gift_wrap(seal, RECIPIENT_PUB)
+
+        recovered_seal = await unwrap_gift_wrap(wrap, RECIPIENT_SIGNER)
+        assert recovered_seal.kind == 13
+        assert recovered_seal.pubkey == SENDER_PUB
+
+    @pytest.mark.asyncio
+    async def test_unseal_returns_rumor(self):
+        rumor = create_rumor(SENDER_PUB, "hello world")
+        seal = await create_seal(rumor, SENDER_SIGNER, RECIPIENT_PUB)
+
+        recovered_rumor = await unseal(seal, RECIPIENT_SIGNER)
+        assert recovered_rumor.content == "hello world"
+        assert recovered_rumor.pubkey == SENDER_PUB
+        assert recovered_rumor.kind == 14
+
+    @pytest.mark.asyncio
+    async def test_wrong_key_fails(self):
+        rumor = create_rumor(SENDER_PUB, "secret")
+        seal = await create_seal(rumor, SENDER_SIGNER, RECIPIENT_PUB)
+        wrap = create_gift_wrap(seal, RECIPIENT_PUB)
+
+        wrong_priv, _ = _generate_keypair()
+        wrong_signer = _LocalSignerStub(wrong_priv)
+        with pytest.raises(Exception):
+            await unwrap_message(wrap, wrong_signer)
+
+
+class TestFullRoundTrip:
+    @pytest.mark.asyncio
+    async def test_wrap_unwrap_message(self):
+        content = "Are you going to the party tonight?"
+        wrap = await wrap_message(content, SENDER_SIGNER, RECIPIENT_PUB)
+
+        assert wrap.kind == 1059
+        assert ["p", RECIPIENT_PUB] in wrap.tags
+
+        rumor = await unwrap_message(wrap, RECIPIENT_SIGNER)
+        assert rumor.content == content
+        assert rumor.pubkey == SENDER_PUB
+        assert rumor.kind == 14
+        assert rumor.sig is None
+
+    @pytest.mark.asyncio
+    async def test_wrap_with_custom_kind_and_tags(self):
+        tags = [["p", RECIPIENT_PUB], ["subject", "test"]]
+        wrap = await wrap_message(
+            "order data",
+            SENDER_SIGNER,
+            RECIPIENT_PUB,
+            kind=14,
+            tags=tags,
+        )
+
+        rumor = await unwrap_message(wrap, RECIPIENT_SIGNER)
+        assert rumor.content == "order data"
+        assert rumor.kind == 14
+        assert ["subject", "test"] in rumor.tags
+
+    @pytest.mark.asyncio
+    async def test_self_wrap_for_archival(self):
+        """Merchant wraps a copy to self (same sender and recipient)."""
+        content = '{"type": 1, "payment_options": [{"type": "ln", "link": "lnbc..."}]}'
+        wrap = await wrap_message(content, SENDER_SIGNER, SENDER_PUB)
+
+        rumor = await unwrap_message(wrap, SENDER_SIGNER)
+        assert rumor.content == content
+        assert rumor.pubkey == SENDER_PUB
+
+    @pytest.mark.asyncio
+    async def test_json_content_preserved(self):
+        """Order JSON payloads survive the wrap/unwrap cycle."""
+        order = {
+            "type": 0,
+            "id": "test-order-123",
+            "items": [{"product_id": "abc", "quantity": 2}],
+            "shipping_id": "zone-1",
+        }
+        content = json.dumps(order)
+        wrap = await wrap_message(content, SENDER_SIGNER, RECIPIENT_PUB)
+
+        rumor = await unwrap_message(wrap, RECIPIENT_SIGNER)
+        recovered_order = json.loads(rumor.content)
+        assert recovered_order == order
+
+    @pytest.mark.asyncio
+    async def test_unicode_content(self):
+        content = "Payment received! \u2705 Your order is being processed \U0001f4e6"
+        wrap = await wrap_message(content, SENDER_SIGNER, RECIPIENT_PUB)
+        rumor = await unwrap_message(wrap, RECIPIENT_SIGNER)
+        assert rumor.content == content
diff --git a/views_api.py b/views_api.py
index 7bf3574..550cca1 100644
--- a/views_api.py
+++ b/views_api.py
@@ -4,7 +4,7 @@ from typing import List, Optional
 
 from fastapi import Depends
 from fastapi.exceptions import HTTPException
-from lnbits.core.crud import get_account, update_account
+from lnbits.core.crud import get_account
 from lnbits.core.services import websocket_updater
 from lnbits.decorators import (
     WalletTypeInfo,
@@ -12,7 +12,6 @@ from lnbits.decorators import (
     require_invoice_key,
 )
 from lnbits.utils.exchange_rates import currencies
-from lnbits.utils.nostr import generate_keypair
 from loguru import logger
 
 from . import nostr_client, nostrmarket_ext
@@ -39,6 +38,7 @@ from .crud import (
     get_last_direct_messages_time,
     get_merchant_by_pubkey,
     get_merchant_for_user,
+    update_merchant_pubkey,
     get_order,
     get_order_by_event_id,
     get_orders,
@@ -82,8 +82,10 @@ from .models import (
 from .services import (
     build_order_with_payment,
     create_or_update_order_from_dm,
+    provision_merchant,
     reply_to_structured_dm,
     resubscribe_to_all_merchants,
+    send_dm,
     sign_and_send_to_nostr,
     subscribe_to_all_merchants,
     update_merchant_to_nostr,
@@ -92,6 +94,44 @@ from .services import (
 ######################################## MERCHANT ######################################
 
 
+async def _auto_create_merchant(
+    wallet: WalletTypeInfo,
+    config: MerchantConfig | None = None,
+) -> Merchant:
+    """
+    Lazy fallback: provision a merchant from the user's account keypair when
+    the LNbits-side eager provisioning didn't run (e.g., older accounts, or
+    upstream LNbits without our signup hook).
+
+    Post-aiolabs/nostrmarket#5: the merchant identity IS the lnbits
+    account identity. No `private_key` is read here — signing routes
+    through the account's `NostrSigner` (which holds a
+    `RemoteBunkerSigner` in our target deployment, with the nsec
+    living entirely in the bunker). The only precondition is that the
+    account already has a `pubkey` — every post-#9 account does, since
+    `create_account` provisions one via the bunker on signup.
+    """
+    account = await get_account(wallet.wallet.user)
+    assert account, "User account not found"
+    assert account.pubkey, (
+        "Account has no Nostr pubkey — must be migrated to RemoteBunkerSigner "
+        "before a merchant can be provisioned (see aiolabs/nostrmarket#5)"
+    )
+
+    merchant = await provision_merchant(
+        user_id=wallet.wallet.user,
+        wallet_id=wallet.wallet.id,
+        public_key=account.pubkey,
+        display_name=account.username,
+        config=config,
+    )
+
+    await resubscribe_to_all_merchants()
+    await nostr_client.merchant_temp_subscription(account.pubkey)
+
+    return merchant
+
+
 @nostrmarket_ext.post("/api/v1/merchant")
 async def api_create_merchant(
     data: CreateMerchantRequest,
@@ -99,60 +139,10 @@ async def api_create_merchant(
 ) -> Merchant:
 
     try:
-        # Check if merchant already exists for this user
         merchant = await get_merchant_for_user(wallet.wallet.user)
         assert merchant is None, "A merchant already exists for this user"
 
-        # Get user's account to access their Nostr keypairs
-        account = await get_account(wallet.wallet.user)
-        if not account:
-            raise HTTPException(
-                status_code=HTTPStatus.NOT_FOUND,
-                detail="User account not found",
-            )
-
-        # Check if user has Nostr keypairs, generate them if not
-        if not account.pubkey or not account.prvkey:
-            # Generate new keypair for user
-            private_key, public_key = generate_keypair()
-            
-            # Update user account with new keypairs
-            account.pubkey = public_key
-            account.prvkey = private_key
-            await update_account(account)
-        else:
-            public_key = account.pubkey
-            private_key = account.prvkey
-
-        # Check if another merchant is already using this public key
-        existing_merchant = await get_merchant_by_pubkey(public_key)
-        assert existing_merchant is None, "A merchant already uses this public key"
-
-        # Create PartialMerchant with user's keypairs
-        partial_merchant = PartialMerchant(
-            private_key=private_key,
-            public_key=public_key,
-            config=data.config
-        )
-
-        merchant = await create_merchant(wallet.wallet.user, partial_merchant)
-
-        await create_zone(
-            merchant.id,
-            Zone(
-                id=f"online-{merchant.public_key}",
-                name="Online",
-                currency="sat",
-                cost=0,
-                countries=["Free (digital)"],
-            ),
-        )
-
-        await resubscribe_to_all_merchants()
-
-        await nostr_client.merchant_temp_subscription(public_key)
-
-        return merchant
+        return await _auto_create_merchant(wallet, data.config)
     except AssertionError as ex:
         raise HTTPException(
             status_code=HTTPStatus.BAD_REQUEST,
@@ -169,12 +159,13 @@ async def api_create_merchant(
 @nostrmarket_ext.get("/api/v1/merchant")
 async def api_get_merchant(
     wallet: WalletTypeInfo = Depends(require_invoice_key),
-) -> Optional[Merchant]:
+) -> Merchant:
 
     try:
         merchant = await get_merchant_for_user(wallet.wallet.user)
         if not merchant:
-            return None
+            # Auto-provision merchant from the user's account keypair
+            merchant = await _auto_create_merchant(wallet)
 
         merchant = await touch_merchant(wallet.wallet.user, merchant.id)
         assert merchant
@@ -182,6 +173,11 @@ async def api_get_merchant(
         assert merchant.time
         merchant.config.restore_in_progress = (merchant.time - last_dm_time) < 30
 
+        # Detect keypair rotation: account key no longer matches merchant key
+        account = await get_account(wallet.wallet.user)
+        if account and account.pubkey and account.pubkey != merchant.public_key:
+            merchant.config.key_mismatch = True
+
         return merchant
     except Exception as ex:
         logger.warning(ex)
@@ -227,6 +223,75 @@ async def api_delete_merchant(
         await subscribe_to_all_merchants()
 
 
+@nostrmarket_ext.post("/api/v1/merchant/{merchant_id}/migrate-keys")
+async def api_migrate_merchant_keys(
+    merchant_id: str,
+    wallet: WalletTypeInfo = Depends(require_admin_key),
+) -> Merchant:
+    """
+    Migrate a merchant to the current account keypair.
+
+    When a user rotates their Nostr keypair, the merchant still holds the old
+    key. This endpoint updates the merchant's keys to match the account,
+    then republishes all stalls and products under the new identity.
+
+    Orders and DM history are preserved (they reference customer pubkeys,
+    not the merchant key). Old stall/product events on relays become
+    orphaned — clients following the new pubkey will see the fresh events.
+    """
+    try:
+        merchant = await get_merchant_for_user(wallet.wallet.user)
+        assert merchant, "Merchant cannot be found"
+        assert merchant.id == merchant_id, "Wrong merchant ID"
+
+        account = await get_account(wallet.wallet.user)
+        assert account and account.pubkey, "Account has no Nostr pubkey"
+
+        if account.pubkey == merchant.public_key:
+            return merchant  # already in sync
+
+        # Check no other merchant is using the new pubkey
+        existing = await get_merchant_by_pubkey(account.pubkey)
+        assert existing is None, (
+            "Another merchant already uses this public key"
+        )
+
+        old_pubkey = merchant.public_key
+
+        # Post-aiolabs/nostrmarket#5: re-pointing only the pubkey; the
+        # signing nsec lives in the bunker and is keyed on account.id,
+        # which is unchanged. No private_key column to update.
+        merchant = await update_merchant_pubkey(
+            wallet.wallet.user, merchant.id, account.pubkey,
+        )
+        assert merchant
+
+        # Republish all stalls and products under the new key
+        merchant = await update_merchant_to_nostr(merchant)
+
+        logger.info(
+            f"[NOSTRMARKET] Migrated merchant {merchant.id} "
+            f"from {old_pubkey[:16]}... to {account.pubkey[:16]}..."
+        )
+
+        # Resubscribe with new pubkey
+        await resubscribe_to_all_merchants()
+
+        return merchant
+
+    except AssertionError as ex:
+        raise HTTPException(
+            status_code=HTTPStatus.BAD_REQUEST,
+            detail=str(ex),
+        ) from ex
+    except Exception as ex:
+        logger.warning(ex)
+        raise HTTPException(
+            status_code=HTTPStatus.INTERNAL_SERVER_ERROR,
+            detail="Cannot migrate merchant keys",
+        ) from ex
+
+
 @nostrmarket_ext.patch("/api/v1/merchant/{merchant_id}")
 async def api_update_merchant(
     merchant_id: str,
@@ -689,6 +754,21 @@ async def api_create_product(
         assert stall, "Stall missing for product"
         data.config.currency = stall.currency
 
+        # Re-publish the parent stall before publishing the product. NIP-33
+        # parameterized replaceable events make this idempotent on relays.
+        # This guarantees the customer client never sees a product whose
+        # parent stall isn't on the relay (e.g., when the original stall
+        # publish failed transiently or never ran).
+        try:
+            stall_event = await sign_and_send_to_nostr(merchant, stall)
+            stall.event_id = stall_event.id
+            await update_stall(merchant.id, stall)
+        except Exception as ex:
+            logger.warning(
+                f"[NOSTRMARKET] Failed to refresh stall {stall.id} "
+                f"before product publish: {ex}"
+            )
+
         product = await create_product(merchant.id, data=data)
 
         event = await sign_and_send_to_nostr(merchant, product)
@@ -881,27 +961,11 @@ async def api_update_order_status(
             ensure_ascii=False,
         )
 
-        dm_event = merchant.build_dm_event(dm_content, order.public_key)
-
-        dm = PartialDirectMessage(
-            event_id=dm_event.id,
-            event_created_at=dm_event.created_at,
-            message=dm_content,
-            public_key=order.public_key,
-            type=DirectMessageType.ORDER_PAID_OR_SHIPPED.value,
-        )
-        await create_direct_message(merchant.id, dm)
-
-        await nostr_client.publish_nostr_event(dm_event)
-        await websocket_updater(
-            merchant.id,
-            json.dumps(
-                {
-                    "type": f"dm:{dm.type}",
-                    "customerPubkey": order.public_key,
-                    "dm": dm.dict(),
-                }
-            ),
+        await send_dm(
+            merchant,
+            order.public_key,
+            DirectMessageType.ORDER_PAID_OR_SHIPPED.value,
+            dm_content,
         )
 
         return order
@@ -1079,14 +1143,13 @@ async def api_create_message(
         merchant = await get_merchant_for_user(wallet.wallet.user)
         assert merchant, "Merchant cannot be found"
 
-        dm_event = merchant.build_dm_event(data.message, data.public_key)
-        data.event_id = dm_event.id
-        data.event_created_at = dm_event.created_at
-
-        dm = await create_direct_message(merchant.id, data)
-        await nostr_client.publish_nostr_event(dm_event)
-
-        return dm
+        dm_reply = await send_dm(
+            merchant,
+            data.public_key,
+            data.type,
+            data.message,
+        )
+        return dm_reply
     except AssertionError as ex:
         raise HTTPException(
             status_code=HTTPStatus.BAD_REQUEST,