Mostro

Oct 15, 2025

How do you acquire or sell bitcoins without compromising your financial sovereignty? Centralized platforms impose invasive KYC procedures exposing your personal data, with the possibility of arbitrary account freezes or state surveillance.

Mostro P2P offers a decentralized alternative combining Lightning Network, the Nostr protocol and hold invoices. Its major innovation: an automated escrow system where your bitcoins remain under your control throughout the exchange, eliminating the risk of theft, exchange bankruptcy or arbitrary confiscation.

What is Mostro P2P?

Mostro P2P is an open source Bitcoin exchange protocol created by grunch, developer of the popular Telegram bot lnp2pbot launched in 2021. While lnp2pbot already enabled KYC-free P2P exchanges via Lightning, it presented a major vulnerability: Telegram constitutes a centralized point of failure susceptible to censorship by governments.

Mostro represents the decentralized evolution of this concept: by replacing Telegram with the Nostr protocol (an incensurable network of distributed relays), Mostro eliminates this systemic risk. The protocol combines Lightning Network for instant transactions, Nostr for censorship-resistant communication, and hold invoices to create a truly non-custodial automated escrow.

Technical architecture

Mostro works through three components:

Daemon Mostrod**: coordinates exchanges between users and Lightning Network
Lightning** node: creates hold invoices (~24h cryptographic escrow)
Mostro** customers: user interfaces (CLI, Mobile, Web)

Orders are published on Nostr as public events (type 38383), while private trades are transmitted via end-to-end encrypted messages (NIP-59, NIP-44). Each Mostro instance defines its own fees (generally between 0.3% and 1%) and transaction limits (ranging from a few thousand to several hundred thousand sats, depending on the instance).

Decisive advantages

Censorship-resistant: No government can shut down Mostro as long as Nostr relays exist somewhere in the world. Unlike the vulnerable lnp2pbot via Telegram, Mostro allows exchanges that are censorship-proof.

Escrow non-custodial: Lightning hold invoices lock your bitcoins without transferring them permanently. Your funds remain under your control and are automatically returned to you in the event of a problem (~24h).

Confidentiality by design: Two modes available to suit your needs. Reputation Mode** links your reputation to your Nostr key to build lasting trust. Full Private Mode** favors absolute anonymity with single-use ephemeral keys.

Main features

Decentralized communication: All orders are published on Nostr via cryptographically signed events. Private negotiations are transmitted via end-to-end encrypted messages, guaranteeing absolute confidentiality.

Reputation system: 5-star rating with iterative calculation permanently stored on Nostr. Allows you to gradually build a reputation as a reliable trader.

Decentralized arbitration: In the event of a dispute, an impartial arbitrator examines the evidence and makes a decision based on transparent criteria. Each dispute generates a unique token for traceability.

Payment flexibility: Support for many fiat currencies via the yadio.io exchange rate service. Accepts SEPA transfers, PayPal, Revolut, cash, and any method agreed between parties.

Mostro customers available

Mostro offers two main operational clients for your P2P exchanges.

Mostro CLI - Command Line Client

The Mostro CLI is the most mature and functional client. Written in Rust, it offers the full range of Mostro features via a command-line interface. Compatible with macOS, Linux and Windows.

Main controls :

listorders: Display all available orders
neworder : Create a new buy or sell order
takesell / takebuy: Take a buy or sell order
fiatsent: Confirm sending of fiat payment
release: Release the escrow and finalize the exchange
getdm: View direct messages
rate : Evaluate your counterparty after an exchange

Ideal for technical users, automation and environments requiring maximum safety.

Mostro Mobile - Smartphone application

The mobile app in alpha version enables P2P trading directly from your smartphone. Intuitive graphical Interface with tabbed navigation, order viewing, advanced filters and integrated chat to communicate with your counterparties.

Available for Android (via APK on GitHub), it's the optimal choice for users favoring simplicity and occasional mobile trading.

Mostro-web - Interface web (in development)

Interface advanced JavaScript web application under active development. Designed to offer a complete user experience with extensive trading and wallet management functionalities. Access via browser with no installation required.

Installation and configuration

This tutorial will guide you through the installation and use of the two main Mostro clients: CLI and the mobile application.

Essential prerequisites

Before you begin, you will need :

A working Lightning Network** wallet with sufficient liquidity (or Lightning-compatible)
Recommended: Phoenix, Breez, Wallet of Satoshi...
Minimum 1000 satoshis of liquidity to test

PhoenixInstalling and using Phoenix Wallet

A Nostr** private key (format nsec1...)
Create a dedicated trading key on nostrkeygen.com
Important**: Never use your main personal Nostr key
Keep your private key in a safe place (password manager)
Optional but recommended**: VPN or Tor connection to mask your IP address

Mullvad VPNSetting up a VPN paid for with bitcoins

Mostro CLI installation

On macOS

Step 1: Rust check

Check that Rust is installed (version 1.64+ required):

rustc --version

If Rust is not installed :

curl --proto '=https' --tlsv1.2 -sSf https://sh.rustup.rs | sh
source $HOME/.cargo/env

Step 2: Cloning the repository

git clone https://github.com/MostroP2P/mostro-cli.git
cd mostro-cli

Step 3: Configuration

Copy and edit the :

cp .env-sample .env

Open .env and configure your settings:

# Public key of the Mostro instance (choose an instance)
# Main mainnet instance (recommended):
MOSTRO_PUBKEY='npub1ykvsmrmw2hk7jgxgy64zr8tfkx4nnjhq9eyfxdlg3caha3ph0skq6jr3z0'
# Alternative/test instance:
# MOSTRO_PUBKEY='npub19m9laul6k463czdacwx5ta4ap43nlf3lr0p99mqugnz8mdz7wtvskkm5wg'

# Your Nostr private key dedicated to trading
NSEC_PRIVKEY='nsec1votre_cle...'

# List of Nostr relays (use the same ones as the mobile app for synchronization)
RELAYS='wss://nos.lol,wss://relay.damus.io,wss://nostr-pub.wellorder.net,wss://nostr.mutinywallet.com,wss://relay.nostr.band'

POW='0'

Important for CLI/Mobile synchronization: To access the same orders on the CLI and the mobile app, you must use the same Mostro Pubkey and the same Nostr relays in both clients. Check these settings in Settings on the mobile app.

Step 4: Installation

Compile and install the CLI :

cargo install --path .

Compilation takes 1-2 minutes. The mostro-cli executable will be installed in ~/.cargo/bin/.

Step 5: Check

Check that everything works:

mostro-cli --help

You should see the complete list of orders.

On Linux (Ubuntu/Debian)

Installation identical to macOS, with the addition of :

sudo apt update
sudo apt install -y cmake build-essential pkg-config
curl --proto '=https' --tlsv1.2 -sSf https://sh.rustup.rs | sh
source $HOME/.cargo/env
git clone https://github.com/MostroP2P/mostro-cli.git
cd mostro-cli
cargo build --release

Then follow steps 3 and 4 in the macOS section.

On Windows

First install Rust via rustup.rs, then use PowerShell :

git clone https://github.com/MostroP2P/mostro-cli.git
cd mostro-cli
cargo build --release

Identical configuration: copy .env-sample to .env and fill in your parameters.

Installing Mostro Mobile

On Android

Step 1: Go to the GitHub releases page and download the app-release.apk file (approx. 65 MB).

**Step 2: Once downloaded, open the APK file from your downloads. Android will ask you to authorize installation from this source.

Step 3: Follow the onboarding screens, which present the functionalities:

Trade Bitcoin freely - no KYC** : Trade without identity verification thanks to Nostr
Privacy by default**: Choose between Reputation mode and Full privacy mode
Security at every step**: Protection with non-custodial hold invoices

Step 4: Continue onboarding to discover :

Fully encrypted chat**: End-to-end encrypted communication
Take an offer**: Browse the order book and choose an offer
Can't find what you need?** : Create your own customized order

**Step 5: Once onboarding is complete, the app automatically generates a pair of Nostr keys. Go to the menu (☰) then Account to save your Secret Words (recovery phrase). It's also on this screen that you have the option of changing the privacy mode previously mentioned.

Important: Write down your recovery phrase in a safe place (password manager, paper safe).

Initial security configuration

Whatever platform you use :

Dedicated key**: Use a separate Nostr identity for trading
Small amounts**: Start with less than sats 10,000 to get started
Multiple relays**: Configure 3-5 geographically diverse relays
Network protection**: Activate VPN or Tor to hide your IP address
Wallet secure**: Activate automatic locking of your wallet Lightning

Use with CLI

This section demonstrates the purchase of bitcoins via Mostro CLI following a real-life use case.

Step 1: List available orders

The listorders command displays all active orders:

mostro-cli listorders

You'll see a table with details of each order: ID, type (buy/sell), amount, currency, payment method.

In this example, an order to sell 5 EUR via Revolut is visible (ID: 305a59d0-dbee-4880-9b9a-44a60486ba4a).

Step 2: Taking the order

To buy these bitcoins, take the order with takesell :

mostro-cli takesell -o 305a59d0-dbee-4880-9b9a-44a60486ba4a

Mostro will ask you to provide a Lightning invoice to receive the BTC. The exact amount in satoshis is indicated (here: 4715 sats).

Step 3: Provide your Lightning invoice

Generate a Lightning invoice from your wallet (Phoenix, Breez, etc.) for the exact amount, then send it :

mostro-cli takesell -o 305a59d0-dbee-4880-9b9a-44a60486ba4a --invoice lnbc47150n1p...

The system confirms the shipment and tells you to wait for the seller to pay the hold invoice before activating the escrow.

Step 4: Contact the seller

Once the escrow has been activated, use dmtouser to request payment details from the seller:

mostro-cli dmtouser --pubkey 7100aed1b44819555b34f90a6ca8dbb7263526e0c580f5ee35fe20d7b0644ae4 \
--orderid 305a59d0-dbee-4880-9b9a-44a60486ba4a \
--message "Hey what's your revtag ?"

Step 5: Retrieve the answer

Check direct messages to see the seller's response:

mostro-cli getdm

The seller gives you his payment ID (here his Revtag: @satoshi).

Step 6: Making the fiat payment

Send the payment via the agreed method (Revolut in this example) to the contact details provided. Keep all supporting documents (screenshots, transaction references).

Step 7: Confirm payment dispatch

Once payment has been made, notify Mostro :

mostro-cli fiatsent -o 305a59d0-dbee-4880-9b9a-44a60486ba4a

Step 8: Receipt of bitcoins

As soon as the seller confirms receipt of the fiat and releases the escrow with the release command, you instantly receive your bitcoins on the Lightning invoice you provided.

Step 9: Evaluation

Rate the seller to contribute to the decentralized reputation:

mostro-cli rate -o 305a59d0-dbee-4880-9b9a-44a60486ba4a -r 5

Useful commands

Cancel an order (before it is taken) :

mostro-cli cancel -o <order-id>

Create a new sales order :

mostro-cli neworder -k sell -c eur -f 20 -m "Revolut" -p 2

Open a dispute :

mostro-cli dispute -o <order-id>

Use with the mobile application

This section demonstrates the sale of bitcoins via Mostro Mobile by following a real-life use case.

Interface main

The application has 3 main tabs:

Order Book**: Browse available buy (BUY BTC) and sell (SELL BTC) orders
My Trades**: View your active and historical orders
Chat**: Communicate with your counterparties using figures

Recommended configuration

Before trading, configure a few settings via the menu (☰) > Settings :

Lightning Address** (optional): To receive payments directly
Relays**: Add several Nostr relays for resilience (e.g. wss://nos.lol, wss://relay.damus.io)
Mostro Pubkey**: Check the public key of the Mostro instance you're using

Important for CLI/Mobile synchronization: If you're using both the CLI and the mobile app, configure exactly the same Nostr relays and Mostro Pubkey in both clients. Without this identical configuration, you won't see the same orders available on both interfaces. The relays and Mostro Pubkey visible in Settings (screenshot above) must match those in your CLI `.env' file.

Step 1: Create a sell order

Press the green "+" button at bottom right, then select SELL (red button).

Fill in the creation form :

Currency: Select the currency you wish to receive (EUR, USD, etc.)
Amount : Enter the amount in fiat (e.g. 1 to 3 EUR)
Payment methods : Choose the method (e.g. "Revolut")
Price type: Select "Market Price"
Premium: Adjust premium (slider from -10% to +10%, recommended: 0% to sell quickly)

Press Submit to publish your order.

Step 2: Publication confirmation

Your order is now published! It will be available for 24 hours. You can cancel it at any time before a buyer takes it by executing the cancel command.

The order appears in the My Trades tab with the status "Pending" and the badge "Created by you".

Step 3: A buyer takes your order

When a buyer takes your order, you receive a notification. See details in My Trades.

Important instruction: You must now pay the hold invoice displayed to lock your bitcoins (here 4674 sats for 1-5 EUR) in the escrow. You have 15 minutes maximum otherwise the exchange will be cancelled.

Copy the hold invoice and pay it from your wallet Lightning (Phoenix, Breez, etc.).

Step 4: Communicate with the buyer

Once the escrow has been activated, press CONTACT to open the encrypted chat with the buyer.

The buyer (here "anonymous-gloriaZhao") will contact you to request your payment details. Please reply with your details (Revtag, IBAN, etc.).

Step 5: Receipt of fiat payment

Wait until you receive the fiat payment in your Revolut account (or other agreed method). Check carefully:

The exact amount
The sender
The reference if requested

The buyer will inform you via chat that he has sent the payment. Mostro will also display a message confirming that the fiat has been sent to you.

Step 6: Release the escrow

Once you have confirmed receipt of the fiat payment on your account, press the green RELEASE button and confirm to send the satss to the buyer.

Bitcoins are instantly transferred to the buyer via his Lightning invoice.

Step 7: Evaluate the consideration

After release, press RATE to rate the buyer. Select from 1 to 5 stars (here 5/5) and press Submit Rating.

The exchange is over!

Buy bitcoins with the mobile app

The process to buy bitcoins is similar but reversed:

Browse the Order Book > BUY BTC tab to view sell orders
Click on an interesting order to view details
Press Take Order
Provide your Lightning invoice (generated from your wallet)
Wait for the seller to activate the escrow
Contact the seller via CONTACT for payment details
Send fiat payment (keep proof)
Seller releases escrow after verification
Receive bitcoins instantly on your Lightning invoice
Rate the seller (1-5 stars)

Problem management

Cancel an order: In My Trades, press your order and then the CANCEL button (available only before it is taken).

Open a dispute: If a disagreement arises, press DISPUTE in the order details. Attach all evidence (chat screenshots, bank transaction references).

Advantages and limitations

Benefits

Financial sovereignty: Your bitcoins never leave your direct control thanks to the hold invoice mechanism, eliminating the risk of exchange bankruptcy or piracy.

Censorship-resistant: No authority can shut down the network or censor your orders. The system works as long as Nostr relays are operational.

Default anonymity: Only a pseudonymous Nostr key identifies you, without KYC or personal data. End-to-end encrypted communications.

Payment flexibility: Any mutually accepted payment method is possible (transfers, mobile apps, cash, barter).

Limitations

Early development: Rudimentary interfaces and technical learning curve required.

Limited liquidity: Limited number of orders, particularly for large amounts or rare currencies.

Technical requirements: Basic understanding of Lightning and Nostr required.

Individual responsibility: No centralized support in case of problems, caution required.

Conclusion

Mostro P2P represents a promising alternative to centralized exchanges, combining Lightning Network, Nostr and automated escrow for truly decentralized trading. Despite its early development and limited liquidity, the platform already offers financial sovereignty, censorship resistance and default anonymity.

For bitcoiners who prefer autonomy and confidentiality, Mostro is a viable option worthy of progressive exploration. Its decentralized architecture guarantees community rather than commercial evolution, paving the way for a future of truly free Bitcoin exchanges.

Resources

Official documentation

Source code and development

Community

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Author

This tutorial has been written by Pierre

You can say thanks by tipping the professor.

Pierre

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Passionate about Bitcoin and convinced that education is the key, I wish to share with you the little knowledge I have and thus contribute to the adoption of Bitcoin. Otherwise, I'm a big fan of Pink Floyd, I'm learning to code, and I make memes. Looking forward to meeting you at the next meet-up! I am the creator of the training course BTC 205 - Non-KYC Purchase Solution.

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