diff --git a/flake.lock b/flake.lock
index bb9bfbe0..a618ecc2 100644
--- a/flake.lock
+++ b/flake.lock
@@ -86,17 +86,17 @@
         "rust-overlay": "rust-overlay"
       },
       "locked": {
-        "lastModified": 1718716287,
-        "narHash": "sha256-rThaCGm+cfFwcAfwUzULZVZ/fdpD+nD37PyKhjWSX2M=",
+        "lastModified": 1728548674,
+        "narHash": "sha256-roy6Pswvf5SmnVhbOrs52LMb1gHATeKTrF49gcwDYEk=",
         "owner": "blockstream",
         "repo": "lwk",
-        "rev": "14bac284fe712dd6fdbbbe82bda179a2a236b2fa",
+        "rev": "caa3f32c3439f12dfda94c84c79dfbbee73d2b15",
         "type": "github"
       },
       "original": {
         "owner": "blockstream",
         "repo": "lwk",
-        "rev": "14bac284fe712dd6fdbbbe82bda179a2a236b2fa",
+        "rev": "caa3f32c3439f12dfda94c84c79dfbbee73d2b15",
         "type": "github"
       }
     },
diff --git a/flake.nix b/flake.nix
index 44c1a13c..371c909c 100644
--- a/flake.nix
+++ b/flake.nix
@@ -10,10 +10,10 @@
     # blockstream-electrs: init at 0.4.1 #299761
     # https://github.com/NixOS/nixpkgs/pull/299761/commits/680d27ad847801af781e0a99e4b87ed73965c69a
     nixpkgs2.url = "github:NixOS/nixpkgs/680d27ad847801af781e0a99e4b87ed73965c69a";
-    # lwk: init at wasm_0.6.3 #14bac28
-    # https://github.com/Blockstream/lwk/releases/tag/wasm_0.6.3
+    # lwk: init at caa3f32c3439f12dfda94c84c79dfbbee73d2b15
+    # https://github.com/Blockstream/lwk/commit/caa3f32c3439f12dfda94c84c79dfbbee73d2b15
     lwk-flake = {
-      url = "github:blockstream/lwk/14bac284fe712dd6fdbbbe82bda179a2a236b2fa";
+      url = "github:blockstream/lwk/caa3f32c3439f12dfda94c84c79dfbbee73d2b15";
       inputs = {
         nixpkgs.follows = "nixpkgs";
         flake-utils.follows = "flake-utils";
diff --git a/lwk/client.go b/lwk/client.go
index 2254b197..5bdef1c5 100644
--- a/lwk/client.go
+++ b/lwk/client.go
@@ -99,8 +99,9 @@ type unvalidatedAddressee struct {
 type sendRequest struct {
 	Addressees []*unvalidatedAddressee `json:"addressees"`
 	// Optional fee rate in sat/vb
-	FeeRate    *float64 `json:"fee_rate,omitempty"`
-	WalletName string   `json:"name"`
+	FeeRate          *float64 `json:"fee_rate,omitempty"`
+	WalletName       string   `json:"name"`
+	EnableCtDiscount bool     `json:"enable_ct_discount"`
 }
 
 type sendResponse struct {
diff --git a/lwk/lwkwallet.go b/lwk/lwkwallet.go
index 166dd62c..8199662a 100644
--- a/lwk/lwkwallet.go
+++ b/lwk/lwkwallet.go
@@ -30,7 +30,7 @@ const (
 	// Set up here because ctx is not inherited throughout the current codebase.
 	defaultContextTimeout             = time.Second * 5
 	minimumFee            SatPerVByte = 0.1
-	supportedCLIVersion               = "0.5.1"
+	supportedCLIVersion               = "0.7.0"
 )
 
 func SatPerVByteFromFeeBTCPerKb(feeBTCPerKb float64) SatPerVByte {
@@ -169,8 +169,9 @@ func (r *LWKRpcWallet) CreateAndBroadcastTransaction(swapParams *swap.OpeningPar
 				Satoshi: swapParams.Amount,
 			},
 		},
-		WalletName: r.c.GetWalletName(),
-		FeeRate:    &feerate,
+		WalletName:       r.c.GetWalletName(),
+		FeeRate:          &feerate,
+		EnableCtDiscount: true,
 	})
 	if err != nil {
 		return "", "", 0, err
@@ -233,6 +234,7 @@ func (r *LWKRpcWallet) SendToAddress(address string, amount Satoshi) (string, er
 				Satoshi: amount,
 			},
 		},
+		EnableCtDiscount: true,
 	})
 	if err != nil {
 		return "", err
diff --git a/test/utils.go b/test/utils.go
index 8708b1a5..97e22587 100644
--- a/test/utils.go
+++ b/test/utils.go
@@ -14,7 +14,7 @@ import (
 	"github.com/stretchr/testify/require"
 )
 
-const defaultLines = 30
+const defaultLines = 1000
 
 func IsIntegrationTest(t *testing.T) {
 	if os.Getenv("RUN_INTEGRATION_TESTS") != "1" {
diff --git a/testframework/elements.go b/testframework/elements.go
index 38d6a630..f67bde6e 100644
--- a/testframework/elements.go
+++ b/testframework/elements.go
@@ -32,6 +32,11 @@ func getLiquiddConfig() map[string]string {
 		"initialfreecoins": "2100000000000000",
 		"validatepegin":    "0",
 		"chain":            "liquidregtest",
+		"acceptdiscountct": "1",
+		"creatediscountct": "1",
+		"minrelaytxfee":    "0.00000001",
+		"mintxfee":         "0.00000001",
+		"blockmintxfee":    "0.00000001",
 	}
 }