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Run a CAT-enabled bitcoind in regtest mode. This will be done either using just bootstrap, or you can run it with just run-bitcoind, or run it yourself with the bitcoin-core-cat binary that was built.
bitcoind needs to be running in the background before running just deposit. when I don't have bitcoind running in the background I get the same error as you, when it is running the deposit command runs successfully.
bitcoin-core.cli -rpcuser=user -rpcpassword=password -regtest getblockcount
0
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