chore: replace @privy-io/server-auth with @privy-io/node

packages/demo/backend/package.json

@@ -37,11 +37,11 @@
     "attribution": "tsx scripts/attribution.ts"
   },
   "dependencies": {
-    "@eth-optimism/utils-app": "^0.0.6",
     "@eth-optimism/actions-sdk": "workspace:*",
+    "@eth-optimism/utils-app": "^0.0.6",
     "@eth-optimism/viem": "^0.4.13",
     "@hono/node-server": "^1.14.0",
-    "@privy-io/server-auth": "^1.31.1",
+    "@privy-io/node": "^0.3.0",
     "commander": "^13.1.0",
     "dotenv": "^16.4.5",
     "envalid": "^8.1.0",

packages/demo/backend/src/app.ts

@@ -60,7 +60,7 @@ class ActionsApp extends App {
           return null
         },
         allowMethods: ['GET', 'POST', 'PUT', 'DELETE', 'OPTIONS'],
-        allowHeaders: ['Content-Type', 'Authorization'],
+        allowHeaders: ['Content-Type', 'Authorization', 'privy-id-token'],
       }),
     )
 

packages/demo/backend/src/config/actions.ts

@@ -1,6 +1,6 @@
 import { createActions } from '@eth-optimism/actions-sdk'
 import type { NodeActionsConfig } from '@eth-optimism/actions-sdk/node'
-import { PrivyClient } from '@privy-io/server-auth'
+import { type AuthorizationContext, PrivyClient } from '@privy-io/node'
 
 import { BASE_SEPOLIA, UNICHAIN } from './chains.js'
 import { env } from './env.js'
@@ -16,6 +16,7 @@ export function createActionsConfig(): NodeActionsConfig<'privy'> {
           type: 'privy',
           config: {
             privyClient: getPrivyClient(),
+            authorizationContext: getAuthorizationContext(),
           },
         },
       },
@@ -51,9 +52,14 @@ export function getActions() {
 }
 
 export function getPrivyClient() {
-  const privy = new PrivyClient(env.PRIVY_APP_ID, env.PRIVY_APP_SECRET)
-  if (env.SESSION_SIGNER_PK) {
-    privy.walletApi.updateAuthorizationKey(env.SESSION_SIGNER_PK)
+  return new PrivyClient({
+    appId: env.PRIVY_APP_ID,
+    appSecret: env.PRIVY_APP_SECRET,
+  })
+}
+
+export function getAuthorizationContext(): AuthorizationContext {
+  return {
+    authorization_private_keys: [env.SESSION_SIGNER_PK],
   }
-  return privy
 }

packages/demo/backend/src/controllers/lend.ts

@@ -69,19 +69,18 @@ export async function openPosition(c: Context) {
       body: { amount, tokenAddress, marketId },
     } = validation.data
     const auth = c.get('auth') as AuthContext | undefined
-    if (!auth || !auth.userId) {
+    if (!auth || !auth.idToken) {
       return c.json({ error: 'Unauthorized' }, 401)
     }
 
     const result = await lendService.openPosition({
-      userId: auth.userId,
+      idToken: auth.idToken,
       amount,
       tokenAddress: tokenAddress as Address,
       marketId: {
         address: marketId.address as Address,
         chainId: marketId.chainId as SupportedChainId,
       },
-      isUserWallet: Boolean(auth?.userId),
     })
 
     return c.json({ result: serializeBigInt(result) })
@@ -113,19 +112,18 @@ export async function closePosition(c: Context) {
       body: { amount, tokenAddress, marketId },
     } = validation.data
     const auth = c.get('auth') as AuthContext | undefined
-    if (!auth || !auth.userId) {
+    if (!auth || !auth.idToken) {
       return c.json({ error: 'Unauthorized' }, 401)
     }
 
     const result = await lendService.closePosition({
-      userId: auth.userId,
+      idToken: auth.idToken,
       amount,
       tokenAddress: tokenAddress as Address,
       marketId: {
         address: marketId.address as Address,
         chainId: marketId.chainId as SupportedChainId,
       },
-      isUserWallet: Boolean(auth?.userId),
     })
 
     return c.json({ result: serializeBigInt(result) })

packages/demo/backend/src/controllers/wallet.ts

@@ -4,10 +4,7 @@ import { type Address } from 'viem'
 import { z } from 'zod'
 
 import type { AuthContext } from '@/middleware/auth.js'
-import type {
-  CreateWalletResponse,
-  GetWalletResponse,
-} from '@/types/service.js'
+import type { GetWalletResponse } from '@/types/service.js'
 
 import { validateRequest } from '../helpers/validation.js'
 import * as walletService from '../services/wallet.js'
@@ -23,63 +20,31 @@ const LendPositionRequestSchema = z.object({
 })
 
 export class WalletController {
-  /**
-   * POST - Create a new wallet for a user
-   */
-  async createWallet(c: Context) {
-    try {
-      const auth = c.get('auth') as AuthContext | undefined
-
-      if (!auth || !auth.userId) {
-        return c.json({ error: 'Unauthorized' }, 401)
-      }
-
-      const { privyAddress, smartWalletAddress } =
-        await walletService.createWallet()
-
-      return c.json({
-        privyAddress,
-        smartWalletAddress,
-        userId: auth.userId,
-      } satisfies CreateWalletResponse)
-    } catch (error) {
-      console.error(error)
-      return c.json(
-        {
-          error: 'Failed to create wallet',
-          message: error instanceof Error ? error.message : 'Unknown error',
-        },
-        500,
-      )
-    }
-  }
-
   /**
    * GET - Retrieve wallet information by user ID
    */
   async getWallet(c: Context) {
     try {
       const auth = c.get('auth') as AuthContext | undefined
 
-      if (!auth || !auth.userId) {
+      if (!auth || !auth.idToken) {
         return c.json({ error: 'Unauthorized' }, 401)
       }
 
-      const wallet = await walletService.getWallet(auth.userId)
+      const wallet = await walletService.getWallet(auth.idToken)
 
       if (!wallet) {
         return c.json(
           {
             error: 'Wallet not found',
-            message: `No wallet found for user ${auth.userId}`,
+            message: `No wallet found for user`,
           },
           404,
         )
       }
 
       return c.json({
         address: wallet.address,
-        userId: auth.userId,
       } satisfies GetWalletResponse)
     } catch (error) {
       console.error(error)
@@ -100,11 +65,11 @@ export class WalletController {
     try {
       const auth = c.get('auth') as AuthContext | undefined
 
-      if (!auth || !auth.userId) {
+      if (!auth || !auth.idToken) {
         return c.json({ error: 'Unauthorized' }, 401)
       }
 
-      const wallet = await walletService.getWallet(auth.userId)
+      const wallet = await walletService.getWallet(auth.idToken)
       if (!wallet) {
         throw new Error('Wallet not found')
       }
@@ -138,11 +103,11 @@ export class WalletController {
 
     const auth = c.get('auth') as AuthContext | undefined
 
-    if (!auth || !auth.userId) {
+    if (!auth || !auth.idToken) {
       return c.json({ error: 'Unauthorized' }, 401)
     }
 
-    const wallet = await walletService.getWallet(auth.userId)
+    const wallet = await walletService.getWallet(auth.idToken)
     if (!wallet) {
       throw new Error('Wallet not found')
     }
@@ -156,11 +121,11 @@ export class WalletController {
   async fundWallet(c: Context) {
     try {
       const auth = c.get('auth') as AuthContext | undefined
-      if (!auth || !auth.userId) {
+      if (!auth || !auth.idToken) {
         return c.json({ error: 'Unauthorized' }, 401)
       }
 
-      const wallet = await walletService.getWallet(auth.userId)
+      const wallet = await walletService.getWallet(auth.idToken)
       if (!wallet) {
         throw new Error('Wallet not found')
       }

packages/demo/backend/src/middleware/auth.ts

@@ -3,24 +3,28 @@ import type { Context, Next } from 'hono'
 import { getPrivyClient } from '@/config/actions.js'
 
 export interface AuthContext {
-  userId: string
+  idToken: string
 }
 
 export async function authMiddleware(c: Context, next: Next) {
   const authHeader = c.req.header('Authorization')
+  const idToken = c.req.header('privy-id-token')
 
   if (!authHeader?.startsWith('Bearer ')) {
     return c.json({ error: 'Unauthorized' }, 401)
   }
 
+  if (!idToken) {
+    return c.json({ error: 'Unauthorized' }, 401)
+  }
+
   const accessToken = parseAuthorizationHeader(authHeader)
 
   try {
     const privy = getPrivyClient()
-    const verifiedPrivy = await privy.verifyAuthToken(accessToken)
-    const userId = verifiedPrivy.userId
+    await privy.utils().auth().verifyAuthToken(accessToken)
     const authContext: AuthContext = {
-      userId,
+      idToken,
     }
     c.set('auth', authContext)
   } catch (err) {

packages/demo/backend/src/mocks/MockPrivyClient.ts

@@ -1,4 +1,4 @@
-import type { PrivyClient } from '@privy-io/server-auth'
+import type { PrivyClient } from '@privy-io/node'
 import type { Address } from 'viem'
 
 import { getRandomAddress } from '@/utils/testUtils.js'

packages/demo/backend/src/router.ts

@@ -45,7 +45,6 @@ router.get(
   walletController.getLendPosition,
 )
 // Parameterized routes
-router.post('/wallet', authMiddleware, walletController.createWallet)
 router.get('/wallet', authMiddleware, walletController.getWallet)
 router.post('/wallet/fund', authMiddleware, walletController.fundWallet)
 

packages/demo/backend/src/services/lend.spec.ts

@@ -126,14 +126,13 @@ describe('Lend Service', () => {
 
       await expect(
         lendService.closePosition({
-          userId: 'invalid-wallet',
+          idToken: 'invalid-wallet',
           amount: 500,
           tokenAddress: '0x078d782b760474a361dda0af3839290b0ef57ad6',
           marketId: {
             address: '0x38f4f3B6533de0023b9DCd04b02F93d36ad1F9f9',
             chainId: 130,
           },
-          isUserWallet: false,
         }),
       ).rejects.toThrow('Wallet not found')
     })

packages/demo/backend/src/services/lend.ts

@@ -1,7 +1,6 @@
 import type {
   LendMarket,
   LendMarketId,
-  LendMarketPosition,
   LendTransactionReceipt,
   SupportedChainId,
 } from '@eth-optimism/actions-sdk'
@@ -50,30 +49,16 @@ export async function getMarket(marketId: LendMarketId): Promise<LendMarket> {
   return await actions.lend.getMarket(marketId)
 }
 
-export async function getPosition(
-  marketId: LendMarketId,
-  walletId: string,
-): Promise<LendMarketPosition> {
-  // Try to get wallet as authenticated user first (for Privy user IDs like did:privy:...)
-  const wallet = await getWallet(walletId)
-
-  if (!wallet) {
-    throw new Error(`Wallet not found for user ID: ${walletId}`)
-  }
-
-  return wallet.lend!.getPosition({ marketId })
-}
-
 async function executePosition(
   params: PositionParams,
   operation: 'open' | 'close',
 ): Promise<LendTransactionReceipt> {
-  const { userId, amount, tokenAddress, marketId } = params
+  const { idToken, amount, tokenAddress, marketId } = params
 
   try {
-    const wallet = await getWallet(userId)
+    const wallet = await getWallet(idToken)
     if (!wallet) {
-      const error = `Wallet not found for user ID: ${userId}`
+      const error = `Wallet not found`
       console.error('[executePositionV1] ERROR:', error)
       throw new Error(error)
     }