diff --git a/app.config.js b/app.config.js
new file mode 100644
index 00000000..25b4d827
--- /dev/null
+++ b/app.config.js
@@ -0,0 +1 @@
+export const APP_BASE_URL = process.env.NEXT_PUBLIC_APP_BASE_URL || 'http://localhost:3000'
diff --git a/app/ClientLayout.tsx b/app/ClientLayout.tsx
index 6afe41fb..e65f7a34 100644
--- a/app/ClientLayout.tsx
+++ b/app/ClientLayout.tsx
@@ -8,6 +8,7 @@ import { StepProvider } from './credentialForm/form/StepContext'
 import { usePathname } from 'next/navigation'
 import background from './Assets/Images/Background.svg'
 import Providers from './components/signing/Providers'
+import AppDidInitializer from './components/AppDidInitializer'
 
 export default function ClientLayout({
   children
@@ -49,6 +50,7 @@ export default function ClientLayout({
                     : '#F0F4F8'
               }}
             >
+              <AppDidInitializer />
               {children}
             </Box>
             <Footer />
diff --git a/app/api/exchanges/[txid]/route.ts b/app/api/exchanges/[txid]/route.ts
index fa55a3e2..067307fe 100644
--- a/app/api/exchanges/[txid]/route.ts
+++ b/app/api/exchanges/[txid]/route.ts
@@ -1,5 +1,6 @@
 import { NextRequest, NextResponse } from 'next/server'
-import { exchanges } from '../../../lib/exchanges' // Adjust path if needed
+import { exchanges } from '../../../lib/exchanges'
+import { APP_BASE_URL } from '../../../../app.config'
 
 // Set CORS headers
 const corsHeaders = {
@@ -58,57 +59,74 @@ export async function POST(
   request: NextRequest,
   { params }: { params: { txId: string } }
 ) {
-  const { txId } = params
-  console.log('🚀 ~ txId:', txId)
+  const { txId } = params;
+  console.log('[POST] Incoming txId:', txId);
 
   try {
-    const body = await request.json()
-    const payload = JSON.stringify(body)
-
-    console.log('Incoming POST:', body)
-
-    if (payload === '{}') {
-      // Initial POST by the wallet, send the VP Request query
-      const query = vprQuery()
-      return NextResponse.json(query, { headers: corsHeaders })
-    } else {
-      // Requested credentials sent by the wallet
-      // Store in the exchanges cache
-      console.log('Storing txId', txId, payload)
-      exchanges.set(txId, payload)
-      return NextResponse.json({ status: 'received' }, { headers: corsHeaders })
+    // Try to parse body — gracefully handle empty body
+    const body = await request.json().catch(() => ({}));
+    console.log('[POST] Parsed body:', body);
+
+    const appInstanceDid = body.appInstanceDid;
+    const existing = exchanges.get(txId);
+
+    if (appInstanceDid) {
+      // Initial POST from the web app
+      console.log('[POST] Received appInstanceDid from resume-author:', appInstanceDid);
+      exchanges.set(txId, JSON.stringify({ appInstanceDid }));
+      return NextResponse.json(
+        { status: '✅ App DID received, waiting for wallet to connect' },
+        { headers: corsHeaders }
+      );
     }
-  } catch (error: any) {
-    console.error(error)
 
+    if (existing) {
+      // LCW second POST with empty body — retrieve session and return VPR
+      const { appInstanceDid } = JSON.parse(existing);
+      console.log('[POST] LCW connected, found stored appInstanceDid:', appInstanceDid);
+
+      const query = vprQuery({ txId, appInstanceDid });
+      return NextResponse.json(query, { headers: corsHeaders });
+    }
+
+    // Neither new DID nor existing session
+    console.warn('[POST] ❌ Missing appInstanceDid and no cached session found for txId.');
     return NextResponse.json(
-      {
-        status: error.statusText || 'Invalid request',
-        error: error.message
-      },
-      {
-        status: error.statusCode || 400,
-        headers: corsHeaders
-      }
-    )
+      { error: 'Missing appInstanceDid and no session initialized' },
+      { status: 400, headers: corsHeaders }
+    );
+
+  } catch (error: any) {
+    console.error('[POST] ❌ Error handling request:', error);
+    return NextResponse.json({ error: 'Invalid request' }, { status: 400, headers: corsHeaders });
   }
 }
 
+
 /**
  * Returns the Verifiable Presentation Request Query
  */
-function vprQuery() {
+function vprQuery({ txId, appInstanceDid }: { txId: string; appInstanceDid: string }) {
+  const pollingExchangeEndpoint = `${APP_BASE_URL}/api/exchanges/${txId}`
+
   return {
     verifiablePresentationRequest: {
+      interact: {
+        type: 'UnmediatedHttpPresentationService2021',
+        serviceEndpoint: pollingExchangeEndpoint
+      },
       query: [
         {
-          type: 'QueryByExample',
-          credentialQuery: {
+          type: 'ZcapQuery',
+          capabilityQuery: {
             reason:
-              'Please present your Verifiable Credential to complete the verification process.',
-            example: {
-              '@context': ['https://www.w3.org/2018/credentials/v1'],
-              type: ['VerifiableCredential']
+              'Linked Creds Author is requesting the permission to read and write to the Verifiable Credentials and VC Evidence collections.',
+            allowedAction: ['GET', 'PUT', 'POST'],
+            controller: appInstanceDid,
+            invocationTarget: {
+              type: 'urn:was:collection',
+              contentType: 'application/vc',
+              name: 'VerifiableCredential collection'
             }
           }
         }
diff --git a/app/components/AppDidInitializer.tsx b/app/components/AppDidInitializer.tsx
new file mode 100644
index 00000000..0c15bc36
--- /dev/null
+++ b/app/components/AppDidInitializer.tsx
@@ -0,0 +1,14 @@
+'use client'
+import { useEffect } from 'react'
+import { getOrCreateAppInstanceDid } from '@cooperation/vc-storage'
+
+export default function AppDidInitializer() {
+  useEffect(() => {
+    ;(async () => {
+      const did = await getOrCreateAppInstanceDid()
+      console.log('App DID ready', did)
+    })()
+  }, [])
+
+  return null
+}
diff --git a/app/layout.tsx b/app/layout.tsx
index 72b67804..2709f18b 100644
--- a/app/layout.tsx
+++ b/app/layout.tsx
@@ -3,7 +3,7 @@ import { Metadata } from 'next'
 import ClientLayout from './ClientLayout'
 import { Inter } from 'next/font/google'
 import './globals.css'
-// test
+
 const inter = Inter({ subsets: ['latin'] })
 export const metadata: Metadata = {
   title: 'LinkedCreds',
@@ -95,7 +95,9 @@ export default function RootLayout({
         <link rel='icon' type='image/png' sizes='32x32' href='/icons/favicon-32x32.png' />
         <link rel='icon' type='image/png' sizes='16x16' href='/icons/favicon-16x16.png' />
       </head>
-      <ClientLayout>{children}</ClientLayout>
+      <ClientLayout>
+        {children}
+      </ClientLayout>
     </html>
   )
 }