Add `MAX_FUNDING_SATOSHIS` constant.
[rust-lightning] / src / ln / channelmanager.rs
index 64c84172c90b0acebde4277d6b2095b3d1a945b3..4dfa20a34ef6499b07608627c9d6ec1dd7dcf024 100644 (file)
@@ -11,45 +11,97 @@ use secp256k1::{Secp256k1,Message};
 use secp256k1::ecdh::SharedSecret;
 use secp256k1;
 
-use chain::chaininterface::{ChainListener,ChainWatchInterface,FeeEstimator};
-use ln::channel::Channel;
+use chain::chaininterface::{BroadcasterInterface,ChainListener,ChainWatchInterface,FeeEstimator};
+use chain::transaction::OutPoint;
+use ln::channel::{Channel, ChannelKeys};
 use ln::channelmonitor::ManyChannelMonitor;
-use ln::router::Route;
+use ln::router::{Route,RouteHop};
 use ln::msgs;
 use ln::msgs::{HandleError,ChannelMessageHandler,MsgEncodable,MsgDecodable};
-use util::byte_utils;
-use util::events;
-use util::internal_traits;
-
-use rand::{thread_rng,Rng};
+use util::{byte_utils, events, internal_traits, rng};
+use util::sha2::Sha256;
 
+use crypto;
 use crypto::mac::{Mac,MacResult};
 use crypto::hmac::Hmac;
 use crypto::digest::Digest;
-use crypto::sha2::Sha256;
 use crypto::symmetriccipher::SynchronousStreamCipher;
 use crypto::chacha20::ChaCha20;
 
-use std::sync::{Mutex,Arc};
+use std::sync::{Mutex,MutexGuard,Arc};
 use std::collections::HashMap;
 use std::collections::hash_map;
-use std::ptr;
-use std::mem;
+use std::{ptr, mem};
 use std::time::{Instant,Duration};
 
-/// Stores the info we will need to send when we want to forward an HTLC onwards
-pub struct PendingForwardHTLCInfo {
-       onion_packet: Option<msgs::OnionPacket>,
-       payment_hash: [u8; 32],
-       short_channel_id: u64,
-       prev_short_channel_id: u64,
-       amt_to_forward: u64,
-       outgoing_cltv_value: u32,
-}
+mod channel_held_info {
+       use ln::msgs;
 
-struct ChannelHolder {
-       by_id: HashMap<Uint256, Channel>,
-       short_to_id: HashMap<u64, Uint256>,
+       /// Stores the info we will need to send when we want to forward an HTLC onwards
+       pub struct PendingForwardHTLCInfo {
+               pub(super) onion_packet: Option<msgs::OnionPacket>,
+               pub(super) payment_hash: [u8; 32],
+               pub(super) short_channel_id: u64,
+               pub(super) prev_short_channel_id: u64,
+               pub(super) amt_to_forward: u64,
+               pub(super) outgoing_cltv_value: u32,
+       }
+
+       #[cfg(feature = "fuzztarget")]
+       impl PendingForwardHTLCInfo {
+               pub fn dummy() -> Self {
+                       Self {
+                               onion_packet: None,
+                               payment_hash: [0; 32],
+                               short_channel_id: 0,
+                               prev_short_channel_id: 0,
+                               amt_to_forward: 0,
+                               outgoing_cltv_value: 0,
+                       }
+               }
+       }
+
+       #[derive(Clone)] // See Channel::revoke_and_ack for why, tl;dr: Rust bug
+       pub enum HTLCFailReason {
+               ErrorPacket {
+                       err: msgs::OnionErrorPacket,
+               },
+               Reason {
+                       failure_code: u16,
+                       data: Vec<u8>,
+               }
+       }
+
+       #[cfg(feature = "fuzztarget")]
+       impl HTLCFailReason {
+               pub fn dummy() -> Self {
+                       HTLCFailReason::Reason {
+                               failure_code: 0, data: Vec::new(),
+                       }
+               }
+       }
+}
+#[cfg(feature = "fuzztarget")]
+pub use self::channel_held_info::*;
+#[cfg(not(feature = "fuzztarget"))]
+pub(crate) use self::channel_held_info::*;
+
+enum PendingOutboundHTLC {
+       IntermediaryHopData {
+               source_short_channel_id: u64,
+               incoming_packet_shared_secret: SharedSecret,
+       },
+       OutboundRoute {
+               route: Route,
+               session_priv: SecretKey,
+       },
+       /// Used for channel rebalancing
+       CycledRoute {
+               source_short_channel_id: u64,
+               incoming_packet_shared_secret: SharedSecret,
+               route: Route,
+               session_priv: SecretKey,
+       }
 }
 
 /// We hold back HTLCs we intend to relay for a random interval in the range (this, 5*this). This
@@ -58,10 +110,33 @@ struct ChannelHolder {
 /// probably increase this significantly.
 const MIN_HTLC_RELAY_HOLDING_CELL_MILLIS: u32 = 50;
 
-struct PendingForwardableHTLCs {
+struct ChannelHolder {
+       by_id: HashMap<Uint256, Channel>,
+       short_to_id: HashMap<u64, Uint256>,
        next_forward: Instant,
        /// short channel id -> forward infos. Key of 0 means payments received
        forward_htlcs: HashMap<u64, Vec<PendingForwardHTLCInfo>>,
+       claimable_htlcs: HashMap<[u8; 32], PendingOutboundHTLC>,
+}
+struct MutChannelHolder<'a> {
+       by_id: &'a mut HashMap<Uint256, Channel>,
+       short_to_id: &'a mut HashMap<u64, Uint256>,
+       next_forward: &'a mut Instant,
+       /// short channel id -> forward infos. Key of 0 means payments received
+       forward_htlcs: &'a mut HashMap<u64, Vec<PendingForwardHTLCInfo>>,
+       claimable_htlcs: &'a mut HashMap<[u8; 32], PendingOutboundHTLC>,
+}
+impl ChannelHolder {
+       fn borrow_parts(&mut self) -> MutChannelHolder {
+               MutChannelHolder {
+                       by_id: &mut self.by_id,
+                       short_to_id: &mut self.short_to_id,
+                       next_forward: &mut self.next_forward,
+                       /// short channel id -> forward infos. Key of 0 means payments received
+                       forward_htlcs: &mut self.forward_htlcs,
+                       claimable_htlcs: &mut self.claimable_htlcs,
+               }
+       }
 }
 
 /// Manager which keeps track of a number of channels and sends messages to the appropriate
@@ -73,17 +148,16 @@ pub struct ChannelManager {
        fee_estimator: Arc<FeeEstimator>,
        monitor: Arc<ManyChannelMonitor>,
        chain_monitor: Arc<ChainWatchInterface>,
+       tx_broadcaster: Arc<BroadcasterInterface>,
 
        announce_channels_publicly: bool,
        fee_proportional_millionths: u32,
        secp_ctx: Secp256k1,
 
-       channels: Mutex<ChannelHolder>,
+       channel_state: Mutex<ChannelHolder>,
        our_network_key: SecretKey,
 
        pending_events: Mutex<Vec<events::Event>>,
-       pending_htlcs_forwardable: Mutex<PendingForwardableHTLCs>,
-       pending_claimable_htlcs: Mutex<HashMap<[u8; 32], u64>>,
 }
 
 const CLTV_EXPIRY_DELTA: u16 = 6 * 24 * 2; //TODO?
@@ -108,34 +182,51 @@ struct OnionKeys {
        mu: [u8; 32],
 }
 
+pub struct ChannelDetails {
+       /// The channel's ID (prior to funding transaction generation, this is a random 32 bytes,
+       /// thereafter this is the txid of the funding transaction xor the funding transaction output).
+       /// Note that this means this value is *not* persistent - it can change once during the
+       /// lifetime of the channel.
+       pub channel_id: Uint256,
+       /// The position of the funding transaction in the chain. None if the funding transaction has
+       /// not yet been confirmed and the channel fully opened.
+       pub short_channel_id: Option<u64>,
+       pub remote_network_id: PublicKey,
+       pub channel_value_satoshis: u64,
+       /// The user_id passed in to create_channel, or 0 if the channel was inbound.
+       pub user_id: u64,
+}
+
 impl ChannelManager {
        /// Constructs a new ChannelManager to hold several channels and route between them. This is
        /// the main "logic hub" for all channel-related actions, and implements ChannelMessageHandler.
        /// fee_proportional_millionths is an optional fee to charge any payments routed through us.
        /// Non-proportional fees are fixed according to our risk using the provided fee estimator.
-       /// panics if channel_value_satoshis is >= (1 << 24)!
-       pub fn new(our_network_key: SecretKey, fee_proportional_millionths: u32, announce_channels_publicly: bool, network: Network, feeest: Arc<FeeEstimator>, monitor: Arc<ManyChannelMonitor>, chain_monitor: Arc<ChainWatchInterface>) -> Result<Arc<ChannelManager>, secp256k1::Error> {
+       /// panics if channel_value_satoshis is >= `MAX_FUNDING_SATOSHIS`!
+       pub fn new(our_network_key: SecretKey, fee_proportional_millionths: u32, announce_channels_publicly: bool, network: Network, feeest: Arc<FeeEstimator>, monitor: Arc<ManyChannelMonitor>, chain_monitor: Arc<ChainWatchInterface>, tx_broadcaster: Arc<BroadcasterInterface>) -> Result<Arc<ChannelManager>, secp256k1::Error> {
                let secp_ctx = Secp256k1::new();
 
                let res = Arc::new(ChannelManager {
                        genesis_hash: genesis_block(network).header.bitcoin_hash(),
                        fee_estimator: feeest.clone(),
                        monitor: monitor.clone(),
-                       chain_monitor: chain_monitor,
-
-                       announce_channels_publicly: announce_channels_publicly,
-                       fee_proportional_millionths: fee_proportional_millionths,
-                       secp_ctx: secp_ctx,
+                       chain_monitor,
+                       tx_broadcaster,
 
-                       channels: Mutex::new(ChannelHolder{by_id: HashMap::new(), short_to_id: HashMap::new()}),
-                       our_network_key: our_network_key,
+                       announce_channels_publicly,
+                       fee_proportional_millionths,
+                       secp_ctx,
 
-                       pending_events: Mutex::new(Vec::new()),
-                       pending_htlcs_forwardable: Mutex::new(PendingForwardableHTLCs {
+                       channel_state: Mutex::new(ChannelHolder{
+                               by_id: HashMap::new(),
+                               short_to_id: HashMap::new(),
                                next_forward: Instant::now(),
                                forward_htlcs: HashMap::new(),
+                               claimable_htlcs: HashMap::new(),
                        }),
-                       pending_claimable_htlcs: Mutex::new(HashMap::new()),
+                       our_network_key,
+
+                       pending_events: Mutex::new(Vec::new()),
                });
                let weak_res = Arc::downgrade(&res);
                res.chain_monitor.register_listener(weak_res);
@@ -143,15 +234,87 @@ impl ChannelManager {
        }
 
        pub fn create_channel(&self, their_network_key: PublicKey, channel_value_satoshis: u64, user_id: u64) -> Result<msgs::OpenChannel, HandleError> {
-               let channel = Channel::new_outbound(&*self.fee_estimator, their_network_key, channel_value_satoshis, self.announce_channels_publicly, user_id);
+               let chan_keys = if cfg!(feature = "fuzztarget") {
+                       ChannelKeys {
+                               funding_key:               SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
+                               revocation_base_key:       SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
+                               payment_base_key:          SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
+                               delayed_payment_base_key:  SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
+                               htlc_base_key:             SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
+                               channel_close_key:         SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
+                               channel_monitor_claim_key: SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
+                               commitment_seed: [0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0],
+                       }
+               } else {
+                       let mut key_seed = [0u8; 32];
+                       rng::fill_bytes(&mut key_seed);
+                       match ChannelKeys::new_from_seed(&key_seed) {
+                               Ok(key) => key,
+                               Err(_) => panic!("RNG is busted!")
+                       }
+               };
+
+               let channel = Channel::new_outbound(&*self.fee_estimator, chan_keys, their_network_key, channel_value_satoshis, self.announce_channels_publicly, user_id);
                let res = channel.get_open_channel(self.genesis_hash.clone(), &*self.fee_estimator)?;
-               let mut channels = self.channels.lock().unwrap();
-               match channels.by_id.insert(channel.channel_id(), channel) {
+               let mut channel_state = self.channel_state.lock().unwrap();
+               match channel_state.by_id.insert(channel.channel_id(), channel) {
                        Some(_) => panic!("RNG is bad???"),
                        None => Ok(res)
                }
        }
 
+       /// Gets the list of open channels, in random order. See ChannelDetail field documentation for
+       /// more information.
+       pub fn list_channels(&self) -> Vec<ChannelDetails> {
+               let channel_state = self.channel_state.lock().unwrap();
+               let mut res = Vec::with_capacity(channel_state.by_id.len());
+               for (channel_id, channel) in channel_state.by_id.iter() {
+                       res.push(ChannelDetails {
+                               channel_id: (*channel_id).clone(),
+                               short_channel_id: channel.get_short_channel_id(),
+                               remote_network_id: channel.get_their_node_id(),
+                               channel_value_satoshis: channel.get_value_satoshis(),
+                               user_id: channel.get_user_id(),
+                       });
+               }
+               res
+       }
+
+       /// Begins the process of closing a channel. After this call (plus some timeout), no new HTLCs
+       /// will be accepted on the given channel, and after additional timeout/the closing of all
+       /// pending HTLCs, the channel will be closed on chain.
+       pub fn close_channel(&self, channel_id: &Uint256) -> Result<msgs::Shutdown, HandleError> {
+               let (res, chan_option) = {
+                       let mut channel_state_lock = self.channel_state.lock().unwrap();
+                       let channel_state = channel_state_lock.borrow_parts();
+                       match channel_state.by_id.entry(channel_id.clone()) {
+                               hash_map::Entry::Occupied(mut chan_entry) => {
+                                       let res = chan_entry.get_mut().get_shutdown()?;
+                                       if chan_entry.get().is_shutdown() {
+                                               if let Some(short_id) = chan_entry.get().get_short_channel_id() {
+                                                       channel_state.short_to_id.remove(&short_id);
+                                               }
+                                               (res, Some(chan_entry.remove_entry().1))
+                                       } else { (res, None) }
+                               },
+                               hash_map::Entry::Vacant(_) => return Err(HandleError{err: "No such channel", msg: None})
+                       }
+               };
+               for payment_hash in res.1 {
+                       // unknown_next_peer...I dunno who that is anymore....
+                       self.fail_htlc_backwards_internal(self.channel_state.lock().unwrap(), &payment_hash, HTLCFailReason::Reason { failure_code: 0x4000 | 10, data: Vec::new() });
+               }
+               if let Some(chan) = chan_option {
+                       if let Ok(update) = self.get_channel_update(&chan) {
+                               let mut events = self.pending_events.lock().unwrap();
+                               events.push(events::Event::BroadcastChannelUpdate {
+                                       msg: update
+                               });
+                       }
+               }
+               Ok(res.0)
+       }
+
        #[inline]
        fn gen_rho_mu_from_shared_secret(shared_secret: &SharedSecret) -> ([u8; 32], [u8; 32]) {
                ({
@@ -179,6 +342,7 @@ impl ChannelManager {
                res
        }
 
+       #[inline]
        fn gen_ammag_from_shared_secret(shared_secret: &SharedSecret) -> [u8; 32] {
                let mut hmac = Hmac::new(Sha256::new(), &[0x61, 0x6d, 0x6d, 0x61, 0x67]); // ammag
                hmac.input(&shared_secret[..]);
@@ -187,8 +351,9 @@ impl ChannelManager {
                res
        }
 
-       fn construct_onion_keys(secp_ctx: &Secp256k1, route: &Route, session_priv: &SecretKey) -> Result<Vec<OnionKeys>, HandleError> {
-               let mut res = Vec::with_capacity(route.hops.len());
+       // can only fail if an intermediary hop has an invalid public key or session_priv is invalid
+       #[inline]
+       fn construct_onion_keys_callback<FType: FnMut(SharedSecret, [u8; 32], PublicKey, &RouteHop)> (secp_ctx: &Secp256k1, route: &Route, session_priv: &SecretKey, mut callback: FType) -> Result<(), HandleError> {
                let mut blinded_priv = session_priv.clone();
                let mut blinded_pub = secp_call!(PublicKey::from_secret_key(secp_ctx, &blinded_priv));
                let mut first_iteration = true;
@@ -211,18 +376,29 @@ impl ChannelManager {
                        secp_call!(blinded_priv.mul_assign(secp_ctx, &secp_call!(SecretKey::from_slice(secp_ctx, &blinding_factor))));
                        blinded_pub = secp_call!(PublicKey::from_secret_key(secp_ctx, &blinded_priv));
 
+                       callback(shared_secret, blinding_factor, ephemeral_pubkey, hop);
+               }
+
+               Ok(())
+       }
+
+       // can only fail if an intermediary hop has an invalid public key or session_priv is invalid
+       fn construct_onion_keys(secp_ctx: &Secp256k1, route: &Route, session_priv: &SecretKey) -> Result<Vec<OnionKeys>, HandleError> {
+               let mut res = Vec::with_capacity(route.hops.len());
+
+               Self::construct_onion_keys_callback(secp_ctx, route, session_priv, |shared_secret, _blinding_factor, ephemeral_pubkey, _| {
                        let (rho, mu) = ChannelManager::gen_rho_mu_from_shared_secret(&shared_secret);
 
                        res.push(OnionKeys {
                                #[cfg(test)]
-                               shared_secret: shared_secret,
+                               shared_secret,
                                #[cfg(test)]
-                               blinding_factor: blinding_factor,
-                               ephemeral_pubkey: ephemeral_pubkey,
-                               rho: rho,
-                               mu: mu,
+                               blinding_factor: _blinding_factor,
+                               ephemeral_pubkey,
+                               rho,
+                               mu,
                        });
-               }
+               })?;
 
                Ok(res)
        }
@@ -377,13 +553,14 @@ impl ChannelManager {
                packet
        }
 
+       #[inline]
        fn build_first_hop_failure_packet(shared_secret: &SharedSecret, failure_type: u16, failure_data: &[u8]) -> msgs::OnionErrorPacket {
                let failure_packet = ChannelManager::build_failure_packet(shared_secret, failure_type, failure_data);
                ChannelManager::encrypt_failure_packet(shared_secret, &failure_packet.encode()[..])
        }
 
        /// only fails if the channel does not yet have an assigned short_id
-       fn get_channel_update(&self, chan: &mut Channel) -> Result<msgs::ChannelUpdate, HandleError> {
+       fn get_channel_update(&self, chan: &Channel) -> Result<msgs::ChannelUpdate, HandleError> {
                let short_channel_id = match chan.get_short_channel_id() {
                        None => return Err(HandleError{err: "Channel not yet established", msg: None}),
                        Some(id) => id,
@@ -411,50 +588,88 @@ impl ChannelManager {
                })
        }
 
-       /// Sends a payment along a given route, returning the UpdateAddHTLC message to give to the
-       /// first hop in route. Value parameters are provided via the last hop in route, see
-       /// documentation for RouteHop fields for more info.
+       /// Sends a payment along a given route.
+       /// Value parameters are provided via the last hop in route, see documentation for RouteHop
+       /// fields for more info.
        /// See-also docs on Channel::send_htlc_and_commit.
-       pub fn send_payment(&self, route: &Route, payment_hash: [u8; 32]) -> Result<Option<(msgs::UpdateAddHTLC, msgs::CommitmentSigned)>, HandleError> {
+       /// May generate a SendHTLCs event on success, which should be relayed.
+       pub fn send_payment(&self, route: Route, payment_hash: [u8; 32]) -> Result<(), HandleError> {
                if route.hops.len() < 1 || route.hops.len() > 20 {
                        return Err(HandleError{err: "Route didn't go anywhere/had bogus size", msg: None});
                }
+               let our_node_id = self.get_our_node_id();
+               for (idx, hop) in route.hops.iter().enumerate() {
+                       if idx != route.hops.len() - 1 && hop.pubkey == our_node_id {
+                               return Err(HandleError{err: "Route went through us but wasn't a simple rebalance loop to us", msg: None});
+                       }
+               }
 
-               let mut rng = thread_rng();
-               let session_priv = secp_call!(SecretKey::from_slice(&self.secp_ctx, & {
+               let session_priv = secp_call!(SecretKey::from_slice(&self.secp_ctx, &{
                        let mut session_key = [0; 32];
-                       rng.fill_bytes(&mut session_key);
+                       rng::fill_bytes(&mut session_key);
                        session_key
                }));
 
                let associated_data = Vec::new(); //TODO: What to put here?
 
-               let onion_keys = ChannelManager::construct_onion_keys(&self.secp_ctx, route, &session_priv)?;
-               let (onion_payloads, htlc_msat, htlc_cltv) = ChannelManager::build_onion_payloads(route)?;
+               let onion_keys = ChannelManager::construct_onion_keys(&self.secp_ctx, &route, &session_priv)?;
+               let (onion_payloads, htlc_msat, htlc_cltv) = ChannelManager::build_onion_payloads(&route)?;
                let onion_packet = ChannelManager::construct_onion_packet(onion_payloads, onion_keys, associated_data)?;
 
-               let mut channels = self.channels.lock().unwrap();
-               let id = match channels.short_to_id.get(&route.hops.first().unwrap().short_channel_id) {
-                       None => return Err(HandleError{err: "No channel available with first hop!", msg: None}),
-                       Some(id) => id.clone()
+               let (first_hop_node_id, (update_add, commitment_signed, chan_monitor)) = {
+                       let mut channel_state = self.channel_state.lock().unwrap();
+                       let id = match channel_state.short_to_id.get(&route.hops.first().unwrap().short_channel_id) {
+                               None => return Err(HandleError{err: "No channel available with first hop!", msg: None}),
+                               Some(id) => id.clone()
+                       };
+                       let res = {
+                               let chan = channel_state.by_id.get_mut(&id).unwrap();
+                               if chan.get_their_node_id() != route.hops.first().unwrap().pubkey {
+                                       return Err(HandleError{err: "Node ID mismatch on first hop!", msg: None});
+                               }
+                               chan.send_htlc_and_commit(htlc_msat, payment_hash.clone(), htlc_cltv, onion_packet)?
+                       };
+
+                       let first_hop_node_id = route.hops.first().unwrap().pubkey;
+
+                       if channel_state.claimable_htlcs.insert(payment_hash, PendingOutboundHTLC::OutboundRoute {
+                               route,
+                               session_priv,
+                       }).is_some() {
+                               // TODO: We need to track these better, we're not generating these, so a
+                               // third-party might make this happen:
+                               panic!("payment_hash was repeated! Don't let this happen");
+                       }
+
+                       match res {
+                               Some(msgs) => (first_hop_node_id, msgs),
+                               None => return Ok(()),
+                       }
                };
-               let chan = channels.by_id.get_mut(&id).unwrap();
-               if chan.get_their_node_id() != route.hops.first().unwrap().pubkey {
-                       return Err(HandleError{err: "Node ID mismatch on first hop!", msg: None});
+
+               if let Err(_e) = self.monitor.add_update_monitor(chan_monitor.get_funding_txo().unwrap(), chan_monitor) {
+                       unimplemented!(); // maybe remove from claimable_htlcs?
                }
-               chan.send_htlc_and_commit(htlc_msat, payment_hash, htlc_cltv, onion_packet)
+
+               let mut events = self.pending_events.lock().unwrap();
+               events.push(events::Event::SendHTLCs {
+                       node_id: first_hop_node_id,
+                       msgs: vec![update_add],
+                       commitment_msg: commitment_signed,
+               });
+               Ok(())
        }
 
        /// Call this upon creation of a funding transaction for the given channel.
        /// Panics if a funding transaction has already been provided for this channel.
-       pub fn funding_transaction_generated(&self, temporary_channel_id: &Uint256, funding_txo: (Sha256dHash, u16)) {
-               let (chan, msg) = {
-                       let mut channels = self.channels.lock().unwrap();
-                       match channels.by_id.remove(&temporary_channel_id) {
+       pub fn funding_transaction_generated(&self, temporary_channel_id: &Uint256, funding_txo: OutPoint) {
+               let (chan, msg, chan_monitor) = {
+                       let mut channel_state = self.channel_state.lock().unwrap();
+                       match channel_state.by_id.remove(&temporary_channel_id) {
                                Some(mut chan) => {
-                                       match chan.get_outbound_funding_created(funding_txo.0, funding_txo.1) {
+                                       match chan.get_outbound_funding_created(funding_txo) {
                                                Ok(funding_msg) => {
-                                                       (chan, funding_msg)
+                                                       (chan, funding_msg.0, funding_msg.1)
                                                },
                                                Err(_e) => {
                                                        //TODO: Push e to pendingevents
@@ -465,15 +680,9 @@ impl ChannelManager {
                                None => return
                        }
                }; // Release channel lock for install_watch_outpoint call,
-               let chan_monitor = chan.channel_monitor();
-               match self.monitor.add_update_monitor(chan_monitor.get_funding_txo().unwrap(), chan_monitor) {
-                       Ok(()) => {},
-                       Err(_e) => {
-                               //TODO: Push e to pendingevents?
-                               return;
-                       }
-               };
-
+               if let Err(_e) = self.monitor.add_update_monitor(chan_monitor.get_funding_txo().unwrap(), chan_monitor) {
+                       unimplemented!(); // maybe remove from claimable_htlcs?
+               }
                {
                        let mut pending_events = self.pending_events.lock().unwrap();
                        pending_events.push(events::Event::SendFundingCreated {
@@ -482,8 +691,8 @@ impl ChannelManager {
                        });
                }
 
-               let mut channels = self.channels.lock().unwrap();
-               channels.by_id.insert(chan.channel_id(), chan);
+               let mut channel_state = self.channel_state.lock().unwrap();
+               channel_state.by_id.insert(chan.channel_id(), chan);
        }
 
        fn get_announcement_sigs(&self, chan: &Channel) -> Result<Option<msgs::AnnouncementSignatures>, HandleError> {
@@ -502,50 +711,37 @@ impl ChannelManager {
        }
 
        pub fn process_pending_htlc_forward(&self) {
-               let forward_htlcs = {
-                       let mut pending_forwards = self.pending_htlcs_forwardable.lock().unwrap();
-                       if Instant::now() < pending_forwards.next_forward {
-                               return;
-                       }
-                       let mut new_map = HashMap::new();
-                       mem::swap(&mut new_map, &mut pending_forwards.forward_htlcs);
-                       new_map
-               };
-
                let mut new_events = Vec::new();
-
+               let mut failed_forwards = Vec::new();
                {
-                       for (short_chan_id, pending_forwards) in forward_htlcs.iter() {
-                               let mut pending_claimable_htlcs = self.pending_claimable_htlcs.lock().unwrap();
-                               for forward_info in pending_forwards {
-                                       pending_claimable_htlcs.insert(forward_info.payment_hash, forward_info.prev_short_channel_id);
-                                       if *short_chan_id == 0 {
-                                               new_events.push(events::Event::PaymentReceived {
-                                                       payment_hash: forward_info.payment_hash,
-                                                       amt: forward_info.amt_to_forward,
-                                               });
-                                       }
-                               }
+                       let mut channel_state_lock = self.channel_state.lock().unwrap();
+                       let channel_state = channel_state_lock.borrow_parts();
+
+                       if cfg!(not(feature = "fuzztarget")) && Instant::now() < *channel_state.next_forward {
+                               return;
                        }
-               }
-               {
-                       let mut channels = self.channels.lock().unwrap();
-                       for (short_chan_id, pending_forwards) in forward_htlcs {
+
+                       for (short_chan_id, pending_forwards) in channel_state.forward_htlcs.drain() {
                                if short_chan_id != 0 {
-                                       let forward_chan_id = match channels.short_to_id.get(&short_chan_id) {
+                                       let forward_chan_id = match channel_state.short_to_id.get(&short_chan_id) {
                                                Some(chan_id) => chan_id.clone(),
                                                None => {
+                                                       failed_forwards.reserve(pending_forwards.len());
+                                                       for forward_info in pending_forwards {
+                                                               failed_forwards.push((forward_info.payment_hash, 0x4000 | 10, None));
+                                                       }
                                                        // TODO: Send a failure packet back on each pending_forward
                                                        continue;
                                                }
                                        };
-                                       let forward_chan = &mut channels.by_id.get_mut(&forward_chan_id).unwrap();
+                                       let forward_chan = &mut channel_state.by_id.get_mut(&forward_chan_id).unwrap();
 
                                        let mut add_htlc_msgs = Vec::new();
                                        for forward_info in pending_forwards {
                                                match forward_chan.send_htlc(forward_info.amt_to_forward, forward_info.payment_hash, forward_info.outgoing_cltv_value, forward_info.onion_packet.unwrap()) {
                                                        Err(_e) => {
-                                                               // TODO: Send a failure packet back
+                                                               let chan_update = self.get_channel_update(forward_chan).unwrap();
+                                                               failed_forwards.push((forward_info.payment_hash, 0x4000 | 7, Some(chan_update)));
                                                                continue;
                                                        },
                                                        Ok(update_add) => {
@@ -566,79 +762,237 @@ impl ChannelManager {
                                        }
 
                                        if !add_htlc_msgs.is_empty() {
-                                               let commitment_msg = match forward_chan.send_commitment() {
-                                                       Ok(msg) => msg,
+                                               let (commitment_msg, monitor) = match forward_chan.send_commitment() {
+                                                       Ok(res) => res,
                                                        Err(_) => {
                                                                //TODO: Handle...this is bad!
                                                                continue;
                                                        },
                                                };
-                                               new_events.push(events::Event::SendHTLCs {
+                                               new_events.push((Some(monitor), events::Event::SendHTLCs {
                                                        node_id: forward_chan.get_their_node_id(),
                                                        msgs: add_htlc_msgs,
                                                        commitment_msg: commitment_msg,
-                                               });
+                                               }));
+                                       }
+                               } else {
+                                       for forward_info in pending_forwards {
+                                               new_events.push((None, events::Event::PaymentReceived {
+                                                       payment_hash: forward_info.payment_hash,
+                                                       amt: forward_info.amt_to_forward,
+                                               }));
                                        }
                                }
                        }
                }
 
+               for failed_forward in failed_forwards.drain(..) {
+                       match failed_forward.2 {
+                               None => self.fail_htlc_backwards_internal(self.channel_state.lock().unwrap(), &failed_forward.0, HTLCFailReason::Reason { failure_code: failed_forward.1, data: Vec::new() }),
+                               Some(chan_update) => self.fail_htlc_backwards_internal(self.channel_state.lock().unwrap(), &failed_forward.0, HTLCFailReason::Reason { failure_code: failed_forward.1, data: chan_update.encode_with_len() }),
+                       };
+               }
+
                if new_events.is_empty() { return }
 
+               new_events.retain(|event| {
+                       if let &Some(ref monitor) = &event.0 {
+                               if let Err(_e) = self.monitor.add_update_monitor(monitor.get_funding_txo().unwrap(), monitor.clone()) {
+                                       unimplemented!();// but def dont push the event...
+                               }
+                       }
+                       true
+               });
+
                let mut events = self.pending_events.lock().unwrap();
                events.reserve(new_events.len());
                for event in new_events.drain(..) {
-                       events.push(event);
+                       events.push(event.1);
+               }
+       }
+
+       /// Indicates that the preimage for payment_hash is unknown after a PaymentReceived event.
+       pub fn fail_htlc_backwards(&self, payment_hash: &[u8; 32]) -> bool {
+               self.fail_htlc_backwards_internal(self.channel_state.lock().unwrap(), payment_hash, HTLCFailReason::Reason { failure_code: 0x4000 | 15, data: Vec::new() })
+       }
+
+       fn fail_htlc_backwards_internal(&self, mut channel_state: MutexGuard<ChannelHolder>, payment_hash: &[u8; 32], onion_error: HTLCFailReason) -> bool {
+               let mut pending_htlc = {
+                       match channel_state.claimable_htlcs.remove(payment_hash) {
+                               Some(pending_htlc) => pending_htlc,
+                               None => return false,
+                       }
+               };
+
+               match pending_htlc {
+                       PendingOutboundHTLC::CycledRoute { source_short_channel_id, incoming_packet_shared_secret, route, session_priv } => {
+                               channel_state.claimable_htlcs.insert(payment_hash.clone(), PendingOutboundHTLC::OutboundRoute {
+                                       route,
+                                       session_priv,
+                               });
+                               pending_htlc = PendingOutboundHTLC::IntermediaryHopData { source_short_channel_id, incoming_packet_shared_secret };
+                       },
+                       _ => {}
+               }
+
+               match pending_htlc {
+                       PendingOutboundHTLC::CycledRoute { .. } => { panic!("WAT"); },
+                       PendingOutboundHTLC::OutboundRoute { .. } => {
+                               mem::drop(channel_state);
+
+                               let mut pending_events = self.pending_events.lock().unwrap();
+                               pending_events.push(events::Event::PaymentFailed {
+                                       payment_hash: payment_hash.clone()
+                               });
+                               false
+                       },
+                       PendingOutboundHTLC::IntermediaryHopData { source_short_channel_id, incoming_packet_shared_secret } => {
+                               let err_packet = match onion_error {
+                                       HTLCFailReason::Reason { failure_code, data } => {
+                                               let packet = ChannelManager::build_failure_packet(&incoming_packet_shared_secret, failure_code, &data[..]).encode();
+                                               ChannelManager::encrypt_failure_packet(&incoming_packet_shared_secret, &packet)
+                                       },
+                                       HTLCFailReason::ErrorPacket { err } => {
+                                               ChannelManager::encrypt_failure_packet(&incoming_packet_shared_secret, &err.data)
+                                       }
+                               };
+
+                               let (node_id, fail_msgs) = {
+                                       let chan_id = match channel_state.short_to_id.get(&source_short_channel_id) {
+                                               Some(chan_id) => chan_id.clone(),
+                                               None => return false
+                                       };
+
+                                       let chan = channel_state.by_id.get_mut(&chan_id).unwrap();
+                                       match chan.get_update_fail_htlc_and_commit(payment_hash, err_packet) {
+                                               Ok(msg) => (chan.get_their_node_id(), msg),
+                                               Err(_e) => {
+                                                       //TODO: Do something with e?
+                                                       return false;
+                                               },
+                                       }
+                               };
+
+                               match fail_msgs {
+                                       Some((msg, commitment_msg, chan_monitor)) => {
+                                               mem::drop(channel_state);
+
+                                               if let Err(_e) = self.monitor.add_update_monitor(chan_monitor.get_funding_txo().unwrap(), chan_monitor) {
+                                                       unimplemented!();// but def dont push the event...
+                                               }
+
+                                               let mut pending_events = self.pending_events.lock().unwrap();
+                                               pending_events.push(events::Event::SendFailHTLC {
+                                                       node_id,
+                                                       msg: msg,
+                                                       commitment_msg: commitment_msg,
+                                               });
+                                       },
+                                       None => {},
+                               }
+
+                               true
+                       },
                }
        }
 
        /// Provides a payment preimage in response to a PaymentReceived event, returning true and
        /// generating message events for the net layer to claim the payment, if possible. Thus, you
        /// should probably kick the net layer to go send messages if this returns true!
+       /// May panic if called except in response to a PaymentReceived event.
        pub fn claim_funds(&self, payment_preimage: [u8; 32]) -> bool {
+               self.claim_funds_internal(payment_preimage, true)
+       }
+       pub fn claim_funds_internal(&self, payment_preimage: [u8; 32], from_user: bool) -> bool {
                let mut sha = Sha256::new();
                sha.input(&payment_preimage);
                let mut payment_hash = [0; 32];
                sha.result(&mut payment_hash);
 
-               let short_chan_id = {
-                       let mut pending_claimable_htlcs = self.pending_claimable_htlcs.lock().unwrap();
-                       match pending_claimable_htlcs.remove(&payment_hash) {
-                               Some(short_id) => short_id,
+               let mut channel_state = self.channel_state.lock().unwrap();
+               let mut pending_htlc = {
+                       match channel_state.claimable_htlcs.remove(&payment_hash) {
+                               Some(pending_htlc) => pending_htlc,
                                None => return false,
                        }
                };
 
-               let (node_id, fulfill_msg) = {
-                       let mut channels = self.channels.lock().unwrap();
-                       let chan_id = match channels.short_to_id.get(&short_chan_id) {
-                               Some(chan_id) => chan_id.clone(),
-                               None => return false
-                       };
+               match pending_htlc {
+                       PendingOutboundHTLC::CycledRoute { source_short_channel_id, incoming_packet_shared_secret, route, session_priv } => {
+                               if from_user { // This was the end hop back to us
+                                       pending_htlc = PendingOutboundHTLC::IntermediaryHopData { source_short_channel_id, incoming_packet_shared_secret };
+                                       channel_state.claimable_htlcs.insert(payment_hash, PendingOutboundHTLC::OutboundRoute { route, session_priv });
+                               } else { // This came from the first upstream node
+                                       // Bank error in our favor! Maybe we should tell the user this somehow???
+                                       pending_htlc = PendingOutboundHTLC::OutboundRoute { route, session_priv };
+                                       channel_state.claimable_htlcs.insert(payment_hash, PendingOutboundHTLC::IntermediaryHopData { source_short_channel_id, incoming_packet_shared_secret });
+                               }
+                       },
+                       _ => {},
+               }
 
-                       let chan = channels.by_id.get_mut(&chan_id).unwrap();
-                       match chan.get_update_fulfill_htlc(payment_preimage) {
-                               Ok(msg) => (chan.get_their_node_id(), msg),
-                               Err(_e) => {
-                                       //TODO: Do something with e?
-                                       return false;
-                               },
-                       }
-               };
+               match pending_htlc {
+                       PendingOutboundHTLC::CycledRoute { .. } => { panic!("WAT"); },
+                       PendingOutboundHTLC::OutboundRoute { .. } => {
+                               if from_user {
+                                       panic!("Called claim_funds with a preimage for an outgoing payment. There is nothing we can do with this, and something is seriously wrong if you knew this...");
+                               }
+                               mem::drop(channel_state);
+                               let mut pending_events = self.pending_events.lock().unwrap();
+                               pending_events.push(events::Event::PaymentSent {
+                                       payment_preimage
+                               });
+                               false
+                       },
+                       PendingOutboundHTLC::IntermediaryHopData { source_short_channel_id, .. } => {
+                               let (node_id, fulfill_msgs) = {
+                                       let chan_id = match channel_state.short_to_id.get(&source_short_channel_id) {
+                                               Some(chan_id) => chan_id.clone(),
+                                               None => return false
+                                       };
 
-               let mut pending_events = self.pending_events.lock().unwrap();
-               pending_events.push(events::Event::SendFulfillHTLC {
-                       node_id: node_id,
-                       msg: fulfill_msg
-               });
+                                       let chan = channel_state.by_id.get_mut(&chan_id).unwrap();
+                                       match chan.get_update_fulfill_htlc_and_commit(payment_preimage) {
+                                               Ok(msg) => (chan.get_their_node_id(), msg),
+                                               Err(_e) => {
+                                                       //TODO: Do something with e?
+                                                       return false;
+                                               },
+                                       }
+                               };
+
+                               mem::drop(channel_state);
+                               match fulfill_msgs {
+                                       Some((msg, commitment_msg, chan_monitor)) => {
+                                               if let Err(_e) = self.monitor.add_update_monitor(chan_monitor.get_funding_txo().unwrap(), chan_monitor) {
+                                                       unimplemented!();// but def dont push the event...
+                                               }
 
-               true
+                                               let mut pending_events = self.pending_events.lock().unwrap();
+                                               pending_events.push(events::Event::SendFulfillHTLC {
+                                                       node_id: node_id,
+                                                       msg,
+                                                       commitment_msg,
+                                               });
+                                       },
+                                       None => {},
+                               }
+                               true
+                       },
+               }
        }
 
        /// Gets the node_id held by this ChannelManager
        pub fn get_our_node_id(&self) -> PublicKey {
                PublicKey::from_secret_key(&self.secp_ctx, &self.our_network_key).unwrap()
        }
+
+       /// Used to restore channels to normal operation after a
+       /// ChannelMonitorUpdateErr::TemporaryFailure was returned from a channel monitor update
+       /// operation.
+       pub fn test_restore_channel_monitor(&self) {
+               unimplemented!();
+       }
 }
 
 impl events::EventsProvider for ChannelManager {
@@ -652,43 +1006,75 @@ impl events::EventsProvider for ChannelManager {
 
 impl ChainListener for ChannelManager {
        fn block_connected(&self, header: &BlockHeader, height: u32, txn_matched: &[&Transaction], indexes_of_txn_matched: &[u32]) {
-               let mut new_funding_locked_messages = Vec::new();
+               let mut new_events = Vec::new();
                {
-                       let mut channels = self.channels.lock().unwrap();
+                       let mut channel_state = self.channel_state.lock().unwrap();
                        let mut short_to_ids_to_insert = Vec::new();
-                       for channel in channels.by_id.values_mut() {
-                               match channel.block_connected(header, height, txn_matched, indexes_of_txn_matched) {
-                                       Some(funding_locked) => {
-                                               let announcement_sigs = match self.get_announcement_sigs(channel) {
-                                                       Ok(res) => res,
-                                                       Err(_e) => {
-                                                               //TODO: push e on events and blow up the channel (it has bad keys)
-                                                               continue;
+                       let mut short_to_ids_to_remove = Vec::new();
+                       channel_state.by_id.retain(|_, channel| {
+                               if let Some(funding_locked) = channel.block_connected(header, height, txn_matched, indexes_of_txn_matched) {
+                                       let announcement_sigs = match self.get_announcement_sigs(channel) {
+                                               Ok(res) => res,
+                                               Err(_e) => {
+                                                       //TODO: push e on events and blow up the channel (it has bad keys)
+                                                       return true;
+                                               }
+                                       };
+                                       new_events.push(events::Event::SendFundingLocked {
+                                               node_id: channel.get_their_node_id(),
+                                               msg: funding_locked,
+                                               announcement_sigs: announcement_sigs
+                                       });
+                                       short_to_ids_to_insert.push((channel.get_short_channel_id().unwrap(), channel.channel_id()));
+                               }
+                               if let Some(funding_txo) = channel.get_funding_txo() {
+                                       for tx in txn_matched {
+                                               for inp in tx.input.iter() {
+                                                       if inp.prev_hash == funding_txo.txid && inp.prev_index == funding_txo.index as u32 {
+                                                               if let Some(short_id) = channel.get_short_channel_id() {
+                                                                       short_to_ids_to_remove.push(short_id);
+                                                               }
+                                                               channel.force_shutdown();
+                                                               if let Ok(update) = self.get_channel_update(&channel) {
+                                                                       new_events.push(events::Event::BroadcastChannelUpdate {
+                                                                               msg: update
+                                                                       });
+                                                               }
+                                                               return false;
                                                        }
-                                               };
-                                               new_funding_locked_messages.push(events::Event::SendFundingLocked {
-                                                       node_id: channel.get_their_node_id(),
-                                                       msg: funding_locked,
-                                                       announcement_sigs: announcement_sigs
+                                               }
+                                       }
+                               }
+                               if channel.channel_monitor().would_broadcast_at_height(height) {
+                                       if let Some(short_id) = channel.get_short_channel_id() {
+                                               short_to_ids_to_remove.push(short_id);
+                                       }
+                                       channel.force_shutdown();
+                                       if let Ok(update) = self.get_channel_update(&channel) {
+                                               new_events.push(events::Event::BroadcastChannelUpdate {
+                                                       msg: update
                                                });
-                                               short_to_ids_to_insert.push((channel.get_short_channel_id().unwrap(), channel.channel_id()));
-                                       },
-                                       None => {}
+                                       }
+                                       return false;
                                }
+                               true
+                       });
+                       for to_remove in short_to_ids_to_remove {
+                               channel_state.short_to_id.remove(&to_remove);
                        }
                        for to_insert in short_to_ids_to_insert {
-                               channels.short_to_id.insert(to_insert.0, to_insert.1);
+                               channel_state.short_to_id.insert(to_insert.0, to_insert.1);
                        }
                }
                let mut pending_events = self.pending_events.lock().unwrap();
-               for funding_locked in new_funding_locked_messages.drain(..) {
+               for funding_locked in new_events.drain(..) {
                        pending_events.push(funding_locked);
                }
        }
 
        fn block_disconnected(&self, header: &BlockHeader) {
-               let mut channels = self.channels.lock().unwrap();
-               for channel in channels.by_id.values_mut() {
+               let mut channel_state = self.channel_state.lock().unwrap();
+               for channel in channel_state.by_id.values_mut() {
                        if channel.block_disconnected(header) {
                                //TODO Close channel here
                        }
@@ -702,20 +1088,41 @@ impl ChannelMessageHandler for ChannelManager {
                if msg.chain_hash != self.genesis_hash {
                        return Err(HandleError{err: "Unknown genesis block hash", msg: None});
                }
-               let mut channels = self.channels.lock().unwrap();
-               if channels.by_id.contains_key(&msg.temporary_channel_id) {
+               let mut channel_state = self.channel_state.lock().unwrap();
+               if channel_state.by_id.contains_key(&msg.temporary_channel_id) {
                        return Err(HandleError{err: "temporary_channel_id collision!", msg: None});
                }
-               let channel = Channel::new_from_req(&*self.fee_estimator, their_node_id.clone(), msg, 0, self.announce_channels_publicly)?;
+
+               let chan_keys = if cfg!(feature = "fuzztarget") {
+                       ChannelKeys {
+                               funding_key:               SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
+                               revocation_base_key:       SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
+                               payment_base_key:          SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
+                               delayed_payment_base_key:  SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
+                               htlc_base_key:             SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
+                               channel_close_key:         SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
+                               channel_monitor_claim_key: SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
+                               commitment_seed: [0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0],
+                       }
+               } else {
+                       let mut key_seed = [0u8; 32];
+                       rng::fill_bytes(&mut key_seed);
+                       match ChannelKeys::new_from_seed(&key_seed) {
+                               Ok(key) => key,
+                               Err(_) => panic!("RNG is busted!")
+                       }
+               };
+
+               let channel = Channel::new_from_req(&*self.fee_estimator, chan_keys, their_node_id.clone(), msg, 0, self.announce_channels_publicly)?;
                let accept_msg = channel.get_accept_channel()?;
-               channels.by_id.insert(channel.channel_id(), channel);
+               channel_state.by_id.insert(channel.channel_id(), channel);
                Ok(accept_msg)
        }
 
        fn handle_accept_channel(&self, their_node_id: &PublicKey, msg: &msgs::AcceptChannel) -> Result<(), HandleError> {
                let (value, output_script, user_id) = {
-                       let mut channels = self.channels.lock().unwrap();
-                       match channels.by_id.get_mut(&msg.temporary_channel_id) {
+                       let mut channel_state = self.channel_state.lock().unwrap();
+                       match channel_state.by_id.get_mut(&msg.temporary_channel_id) {
                                Some(chan) => {
                                        if chan.get_their_node_id() != *their_node_id {
                                                return Err(HandleError{err: "Got a message for a channel from the wrong node!", msg: None})
@@ -740,16 +1147,16 @@ impl ChannelMessageHandler for ChannelManager {
                //TODO: broke this - a node shouldn't be able to get their channel removed by sending a
                //funding_created a second time, or long after the first, or whatever (note this also
                //leaves the short_to_id map in a busted state.
-               let chan = {
-                       let mut channels = self.channels.lock().unwrap();
-                       match channels.by_id.remove(&msg.temporary_channel_id) {
+               let (chan, funding_msg, monitor_update) = {
+                       let mut channel_state = self.channel_state.lock().unwrap();
+                       match channel_state.by_id.remove(&msg.temporary_channel_id) {
                                Some(mut chan) => {
                                        if chan.get_their_node_id() != *their_node_id {
                                                return Err(HandleError{err: "Got a message for a channel from the wrong node!", msg: None})
                                        }
                                        match chan.funding_created(msg) {
-                                               Ok(funding_msg) => {
-                                                       (chan, funding_msg)
+                                               Ok((funding_msg, monitor_update)) => {
+                                                       (chan, funding_msg, monitor_update)
                                                },
                                                Err(e) => {
                                                        return Err(e);
@@ -762,27 +1169,31 @@ impl ChannelMessageHandler for ChannelManager {
                   // note that this means if the remote end is misbehaving and sends a message for the same
                   // channel back-to-back with funding_created, we'll end up thinking they sent a message
                   // for a bogus channel.
-               let chan_monitor = chan.0.channel_monitor();
-               self.monitor.add_update_monitor(chan_monitor.get_funding_txo().unwrap(), chan_monitor)?;
-               let mut channels = self.channels.lock().unwrap();
-               channels.by_id.insert(chan.1.channel_id, chan.0);
-               Ok(chan.1)
+               if let Err(_e) = self.monitor.add_update_monitor(monitor_update.get_funding_txo().unwrap(), monitor_update) {
+                       unimplemented!();
+               }
+               let mut channel_state = self.channel_state.lock().unwrap();
+               channel_state.by_id.insert(funding_msg.channel_id, chan);
+               Ok(funding_msg)
        }
 
        fn handle_funding_signed(&self, their_node_id: &PublicKey, msg: &msgs::FundingSigned) -> Result<(), HandleError> {
-               let (funding_txo, user_id) = {
-                       let mut channels = self.channels.lock().unwrap();
-                       match channels.by_id.get_mut(&msg.channel_id) {
+               let (funding_txo, user_id, monitor) = {
+                       let mut channel_state = self.channel_state.lock().unwrap();
+                       match channel_state.by_id.get_mut(&msg.channel_id) {
                                Some(chan) => {
                                        if chan.get_their_node_id() != *their_node_id {
                                                return Err(HandleError{err: "Got a message for a channel from the wrong node!", msg: None})
                                        }
-                                       chan.funding_signed(&msg)?;
-                                       (chan.get_funding_txo().unwrap(), chan.get_user_id())
+                                       let chan_monitor = chan.funding_signed(&msg)?;
+                                       (chan.get_funding_txo().unwrap(), chan.get_user_id(), chan_monitor)
                                },
                                None => return Err(HandleError{err: "Failed to find corresponding channel", msg: None})
                        }
                };
+               if let Err(_e) = self.monitor.add_update_monitor(monitor.get_funding_txo().unwrap(), monitor) {
+                       unimplemented!();
+               }
                let mut pending_events = self.pending_events.lock().unwrap();
                pending_events.push(events::Event::FundingBroadcastSafe {
                        funding_txo: funding_txo,
@@ -792,8 +1203,8 @@ impl ChannelMessageHandler for ChannelManager {
        }
 
        fn handle_funding_locked(&self, their_node_id: &PublicKey, msg: &msgs::FundingLocked) -> Result<Option<msgs::AnnouncementSignatures>, HandleError> {
-               let mut channels = self.channels.lock().unwrap();
-               match channels.by_id.get_mut(&msg.channel_id) {
+               let mut channel_state = self.channel_state.lock().unwrap();
+               match channel_state.by_id.get_mut(&msg.channel_id) {
                        Some(chan) => {
                                if chan.get_their_node_id() != *their_node_id {
                                        return Err(HandleError{err: "Got a message for a channel from the wrong node!", msg: None})
@@ -805,12 +1216,79 @@ impl ChannelMessageHandler for ChannelManager {
                };
        }
 
-       fn handle_shutdown(&self, _their_node_id: &PublicKey, _msg: &msgs::Shutdown) -> Result<(), HandleError> {
-               unimplemented!()
+       fn handle_shutdown(&self, their_node_id: &PublicKey, msg: &msgs::Shutdown) -> Result<(Option<msgs::Shutdown>, Option<msgs::ClosingSigned>), HandleError> {
+               let (res, chan_option) = {
+                       let mut channel_state_lock = self.channel_state.lock().unwrap();
+                       let channel_state = channel_state_lock.borrow_parts();
+
+                       match channel_state.by_id.entry(msg.channel_id.clone()) {
+                               hash_map::Entry::Occupied(mut chan_entry) => {
+                                       if chan_entry.get().get_their_node_id() != *their_node_id {
+                                               return Err(HandleError{err: "Got a message for a channel from the wrong node!", msg: None})
+                                       }
+                                       let res = chan_entry.get_mut().shutdown(&*self.fee_estimator, &msg)?;
+                                       if chan_entry.get().is_shutdown() {
+                                               if let Some(short_id) = chan_entry.get().get_short_channel_id() {
+                                                       channel_state.short_to_id.remove(&short_id);
+                                               }
+                                               (res, Some(chan_entry.remove_entry().1))
+                                       } else { (res, None) }
+                               },
+                               hash_map::Entry::Vacant(_) => return Err(HandleError{err: "Failed to find corresponding channel", msg: None})
+                       }
+               };
+               for payment_hash in res.2 {
+                       // unknown_next_peer...I dunno who that is anymore....
+                       self.fail_htlc_backwards_internal(self.channel_state.lock().unwrap(), &payment_hash, HTLCFailReason::Reason { failure_code: 0x4000 | 10, data: Vec::new() });
+               }
+               if let Some(chan) = chan_option {
+                       if let Ok(update) = self.get_channel_update(&chan) {
+                               let mut events = self.pending_events.lock().unwrap();
+                               events.push(events::Event::BroadcastChannelUpdate {
+                                       msg: update
+                               });
+                       }
+               }
+               Ok((res.0, res.1))
        }
 
-       fn handle_closing_signed(&self, _their_node_id: &PublicKey, _msg: &msgs::ClosingSigned) -> Result<(), HandleError> {
-               unimplemented!()
+       fn handle_closing_signed(&self, their_node_id: &PublicKey, msg: &msgs::ClosingSigned) -> Result<Option<msgs::ClosingSigned>, HandleError> {
+               let (res, chan_option) = {
+                       let mut channel_state_lock = self.channel_state.lock().unwrap();
+                       let channel_state = channel_state_lock.borrow_parts();
+                       match channel_state.by_id.entry(msg.channel_id.clone()) {
+                               hash_map::Entry::Occupied(mut chan_entry) => {
+                                       if chan_entry.get().get_their_node_id() != *their_node_id {
+                                               return Err(HandleError{err: "Got a message for a channel from the wrong node!", msg: None})
+                                       }
+                                       let res = chan_entry.get_mut().closing_signed(&*self.fee_estimator, &msg)?;
+                                       if res.1.is_some() {
+                                               // We're done with this channel, we've got a signed closing transaction and
+                                               // will send the closing_signed back to the remote peer upon return. This
+                                               // also implies there are no pending HTLCs left on the channel, so we can
+                                               // fully delete it from tracking (the channel monitor is still around to
+                                               // watch for old state broadcasts)!
+                                               if let Some(short_id) = chan_entry.get().get_short_channel_id() {
+                                                       channel_state.short_to_id.remove(&short_id);
+                                               }
+                                               (res, Some(chan_entry.remove_entry().1))
+                                       } else { (res, None) }
+                               },
+                               hash_map::Entry::Vacant(_) => return Err(HandleError{err: "Failed to find corresponding channel", msg: None})
+                       }
+               };
+               if let Some(broadcast_tx) = res.1 {
+                       self.tx_broadcaster.broadcast_transaction(&broadcast_tx);
+               }
+               if let Some(chan) = chan_option {
+                       if let Ok(update) = self.get_channel_update(&chan) {
+                               let mut events = self.pending_events.lock().unwrap();
+                               events.push(events::Event::BroadcastChannelUpdate {
+                                       msg: update
+                               });
+                       }
+               }
+               Ok(res.0)
        }
 
        fn handle_update_add_htlc(&self, their_node_id: &PublicKey, msg: &msgs::UpdateAddHTLC) -> Result<(), msgs::HandleError> {
@@ -828,6 +1306,33 @@ impl ChannelMessageHandler for ChannelManager {
 
                let associated_data = Vec::new(); //TODO: What to put here?
 
+               macro_rules! get_onion_hash {
+                       () => {
+                               {
+                                       let mut sha = Sha256::new();
+                                       sha.input(&msg.onion_routing_packet.hop_data);
+                                       let mut onion_hash = [0; 32];
+                                       sha.result(&mut onion_hash);
+                                       onion_hash
+                               }
+                       }
+               }
+
+               macro_rules! return_err {
+                       ($msg: expr, $err_code: expr, $data: expr) => {
+                               return Err(msgs::HandleError {
+                                       err: $msg,
+                                       msg: Some(msgs::ErrorAction::UpdateFailHTLC {
+                                               msg: msgs::UpdateFailHTLC {
+                                                       channel_id: msg.channel_id,
+                                                       htlc_id: msg.htlc_id,
+                                                       reason: ChannelManager::build_first_hop_failure_packet(&shared_secret, $err_code, $data),
+                                               }
+                                       }),
+                               });
+                       }
+               }
+
                if msg.onion_routing_packet.version != 0 {
                        //TODO: Spec doesn't indicate if we should only hash hop_data here (and in other
                        //sha256_of_onion error data packets), or the entire onion_routing_packet. Either way,
@@ -835,39 +1340,14 @@ impl ChannelMessageHandler for ChannelManager {
                        //receiving node would have to brute force to figure out which version was put in the
                        //packet by the node that send us the message, in the case of hashing the hop_data, the
                        //node knows the HMAC matched, so they already know what is there...
-                       let mut sha = Sha256::new();
-                       sha.input(&msg.onion_routing_packet.hop_data);
-                       let mut onion_hash = [0; 32];
-                       sha.result(&mut onion_hash);
-                       return Err(msgs::HandleError {
-                               err: "Unknown onion packet version",
-                               msg: Some(msgs::ErrorMessage::UpdateFailHTLC {
-                                       msg: msgs::UpdateFailHTLC {
-                                               channel_id: msg.channel_id,
-                                               htlc_id: msg.htlc_id,
-                                               reason: ChannelManager::build_first_hop_failure_packet(&shared_secret, 0x8000 | 0x4000 | 4, &onion_hash),
-                                       }
-                               }),
-                       });
+                       return_err!("Unknown onion packet version", 0x8000 | 0x4000 | 4, &get_onion_hash!());
                }
 
                let mut hmac = Hmac::new(Sha256::new(), &mu);
                hmac.input(&msg.onion_routing_packet.hop_data);
                hmac.input(&associated_data[..]);
                if hmac.result() != MacResult::new(&msg.onion_routing_packet.hmac) {
-                       let mut sha = Sha256::new();
-                       sha.input(&msg.onion_routing_packet.hop_data);
-                       let mut onion_hash = [0; 32];
-                       sha.result(&mut onion_hash);
-                       return Err(HandleError{err: "HMAC Check failed",
-                               msg: Some(msgs::ErrorMessage::UpdateFailHTLC {
-                                       msg: msgs::UpdateFailHTLC {
-                                               channel_id: msg.channel_id,
-                                               htlc_id: msg.htlc_id,
-                                               reason: ChannelManager::build_first_hop_failure_packet(&shared_secret, 0x8000 | 0x4000 | 5, &onion_hash),
-                                       }
-                               }),
-                       });
+                       return_err!("HMAC Check failed", 0x8000 | 0x4000 | 5, &get_onion_hash!());
                }
 
                let mut chacha = ChaCha20::new(&rho, &[0u8; 8]);
@@ -880,15 +1360,7 @@ impl ChannelMessageHandler for ChannelManager {
                                                msgs::DecodeError::UnknownRealmByte => 0x4000 | 1,
                                                _ => 0x2000 | 2, // Should never happen
                                        };
-                                       return Err(HandleError{err: "Unable to decode our hop data",
-                                               msg: Some(msgs::ErrorMessage::UpdateFailHTLC {
-                                                       msg: msgs::UpdateFailHTLC {
-                                                               channel_id: msg.channel_id,
-                                                               htlc_id: msg.htlc_id,
-                                                               reason: ChannelManager::build_first_hop_failure_packet(&shared_secret, error_code, &[0;0]),
-                                                       }
-                                               }),
-                                       });
+                                       return_err!("Unable to decode our hop data", error_code, &[0;0]);
                                },
                                Ok(msg) => msg
                        }
@@ -897,26 +1369,10 @@ impl ChannelMessageHandler for ChannelManager {
                let mut pending_forward_info = if next_hop_data.hmac == [0; 32] {
                                // OUR PAYMENT!
                                if next_hop_data.data.amt_to_forward != msg.amount_msat {
-                                       return Err(HandleError{err: "Upstream node sent less than we were supposed to receive in payment",
-                                               msg: Some(msgs::ErrorMessage::UpdateFailHTLC {
-                                                       msg: msgs::UpdateFailHTLC {
-                                                               channel_id: msg.channel_id,
-                                                               htlc_id: msg.htlc_id,
-                                                               reason: ChannelManager::build_first_hop_failure_packet(&shared_secret, 19, &byte_utils::be64_to_array(msg.amount_msat)),
-                                                       }
-                                               }),
-                                       });
+                                       return_err!("Upstream node sent less than we were supposed to receive in payment", 19, &byte_utils::be64_to_array(msg.amount_msat));
                                }
                                if next_hop_data.data.outgoing_cltv_value != msg.cltv_expiry {
-                                       return Err(HandleError{err: "Upstream node set CLTV to the wrong value",
-                                               msg: Some(msgs::ErrorMessage::UpdateFailHTLC {
-                                                       msg: msgs::UpdateFailHTLC {
-                                                               channel_id: msg.channel_id,
-                                                               htlc_id: msg.htlc_id,
-                                                               reason: ChannelManager::build_first_hop_failure_packet(&shared_secret, 18, &byte_utils::be32_to_array(msg.cltv_expiry)),
-                                                       }
-                                               }),
-                                       });
+                                       return_err!("Upstream node set CLTV to the wrong value", 18, &byte_utils::be32_to_array(msg.cltv_expiry));
                                }
 
                                // Note that we could obviously respond immediately with an update_fulfill_htlc
@@ -949,15 +1405,7 @@ impl ChannelMessageHandler for ChannelManager {
                                                Err(_) => {
                                                        // Return temporary node failure as its technically our issue, not the
                                                        // channel's issue.
-                                                       return Err(HandleError{err: "Blinding factor is an invalid private key",
-                                                               msg: Some(msgs::ErrorMessage::UpdateFailHTLC {
-                                                                       msg: msgs::UpdateFailHTLC {
-                                                                               channel_id: msg.channel_id,
-                                                                               htlc_id: msg.htlc_id,
-                                                                               reason: ChannelManager::build_first_hop_failure_packet(&shared_secret, 0x2000 | 2, &[0;0]),
-                                                                       }
-                                                               }),
-                                                       });
+                                                       return_err!("Blinding factor is an invalid private key", 0x2000 | 2, &[0;0]);
                                                },
                                                Ok(key) => key
                                        }
@@ -967,15 +1415,7 @@ impl ChannelMessageHandler for ChannelManager {
                                        Err(_) => {
                                                // Return temporary node failure as its technically our issue, not the
                                                // channel's issue.
-                                               return Err(HandleError{err: "New blinding factor is an invalid private key",
-                                                       msg: Some(msgs::ErrorMessage::UpdateFailHTLC {
-                                                               msg: msgs::UpdateFailHTLC {
-                                                                       channel_id: msg.channel_id,
-                                                                       htlc_id: msg.htlc_id,
-                                                                       reason: ChannelManager::build_first_hop_failure_packet(&shared_secret, 0x2000 | 2, &[0;0]),
-                                                               }
-                                                       }),
-                                               });
+                                               return_err!("New blinding factor is an invalid private key", 0x2000 | 2, &[0;0]);
                                        },
                                        Ok(_) => {}
                                };
@@ -999,39 +1439,46 @@ impl ChannelMessageHandler for ChannelManager {
                                }
                        };
 
-               let mut channels = self.channels.lock().unwrap();
+               let mut channel_state_lock = self.channel_state.lock().unwrap();
+               let channel_state = channel_state_lock.borrow_parts();
 
-               if pending_forward_info.short_channel_id != 0 {
-                       let forwarding_id = match channels.short_to_id.get(&pending_forward_info.short_channel_id) {
+               if pending_forward_info.onion_packet.is_some() { // If short_channel_id is 0 here, we'll reject them in the body here
+                       let forwarding_id = match channel_state.short_to_id.get(&pending_forward_info.short_channel_id) {
                                None => {
-                                       return Err(HandleError{err: "Don't have available channel for forwarding as requested.",
-                                               msg: Some(msgs::ErrorMessage::UpdateFailHTLC {
-                                                       msg: msgs::UpdateFailHTLC {
-                                                               channel_id: msg.channel_id,
-                                                               htlc_id: msg.htlc_id,
-                                                               reason: ChannelManager::build_first_hop_failure_packet(&shared_secret, 0x4000 | 10, &[0;0]),
-                                                       }
-                                               }),
-                                       });
+                                       return_err!("Don't have available channel for forwarding as requested.", 0x4000 | 10, &[0;0]);
                                },
                                Some(id) => id.clone(),
                        };
-                       let chan = channels.by_id.get_mut(&forwarding_id).unwrap();
+                       let chan = channel_state.by_id.get_mut(&forwarding_id).unwrap();
                        if !chan.is_live() {
                                let chan_update = self.get_channel_update(chan).unwrap();
-                               return Err(HandleError{err: "Forwarding channel is not in a ready state.",
-                                       msg: Some(msgs::ErrorMessage::UpdateFailHTLC {
-                                               msg: msgs::UpdateFailHTLC {
-                                                       channel_id: msg.channel_id,
-                                                       htlc_id: msg.htlc_id,
-                                                       reason: ChannelManager::build_first_hop_failure_packet(&shared_secret, 0x4000 | 10, &chan_update.encode()[..]),
-                                               }
-                                       }),
-                               });
+                               return_err!("Forwarding channel is not in a ready state.", 0x4000 | 7, &chan_update.encode_with_len()[..]);
                        }
                }
 
-               match channels.by_id.get_mut(&msg.channel_id) {
+               let claimable_htlcs_entry = channel_state.claimable_htlcs.entry(msg.payment_hash.clone());
+
+               // We dont correctly handle payments that route through us twice on their way to their
+               // destination. That's OK since those nodes are probably busted or trying to do network
+               // mapping through repeated loops. In either case, we want them to stop talking to us, so
+               // we send permanent_node_failure.
+               match &claimable_htlcs_entry {
+                       &hash_map::Entry::Occupied(ref e) => {
+                               let mut acceptable_cycle = false;
+                               match e.get() {
+                                       &PendingOutboundHTLC::OutboundRoute { .. } => {
+                                               acceptable_cycle = pending_forward_info.short_channel_id == 0;
+                                       },
+                                       _ => {},
+                               }
+                               if !acceptable_cycle {
+                                       return_err!("Payment looped through us twice", 0x4000 | 0x2000 | 2, &[0;0]);
+                               }
+                       },
+                       _ => {},
+               }
+
+               let (source_short_channel_id, res) = match channel_state.by_id.get_mut(&msg.channel_id) {
                        Some(chan) => {
                                if chan.get_their_node_id() != *their_node_id {
                                        return Err(HandleError{err: "Got a message for a channel from the wrong node!", msg: None})
@@ -1039,84 +1486,201 @@ impl ChannelMessageHandler for ChannelManager {
                                if !chan.is_usable() {
                                        return Err(HandleError{err: "Channel not yet available for receiving HTLCs", msg: None});
                                }
-                               pending_forward_info.prev_short_channel_id = chan.get_short_channel_id().unwrap();
-                               chan.update_add_htlc(&msg, pending_forward_info)
+                               let short_channel_id = chan.get_short_channel_id().unwrap();
+                               pending_forward_info.prev_short_channel_id = short_channel_id;
+                               (short_channel_id, chan.update_add_htlc(&msg, pending_forward_info)?)
                        },
                        None => return Err(HandleError{err: "Failed to find corresponding channel", msg: None}), //TODO: panic?
+               };
+
+               match claimable_htlcs_entry {
+                       hash_map::Entry::Occupied(mut e) => {
+                               let outbound_route = e.get_mut();
+                               let (route, session_priv) = match outbound_route {
+                                       &mut PendingOutboundHTLC::OutboundRoute { ref route, ref session_priv } => {
+                                               (route.clone(), session_priv.clone())
+                                       },
+                                       _ => { panic!("WAT") },
+                               };
+                               *outbound_route = PendingOutboundHTLC::CycledRoute {
+                                       source_short_channel_id,
+                                       incoming_packet_shared_secret: shared_secret,
+                                       route,
+                                       session_priv,
+                               };
+                       },
+                       hash_map::Entry::Vacant(e) => {
+                               e.insert(PendingOutboundHTLC::IntermediaryHopData {
+                                       source_short_channel_id,
+                                       incoming_packet_shared_secret: shared_secret,
+                               });
+                       }
                }
+
+               Ok(res)
        }
 
-       fn handle_update_fulfill_htlc(&self, their_node_id: &PublicKey, msg: &msgs::UpdateFulfillHTLC) -> Result<Option<(Vec<msgs::UpdateAddHTLC>, msgs::CommitmentSigned)>, HandleError> {
-               let res = {
-                       let mut channels = self.channels.lock().unwrap();
-                       match channels.by_id.get_mut(&msg.channel_id) {
+       fn handle_update_fulfill_htlc(&self, their_node_id: &PublicKey, msg: &msgs::UpdateFulfillHTLC) -> Result<(), HandleError> {
+               //TODO: Delay the claimed_funds relaying just like we do outbound relay!
+               // Claim funds first, cause we don't really care if the channel we received the message on
+               // is broken, we may have enough info to get our own money!
+               self.claim_funds_internal(msg.payment_preimage.clone(), false);
+
+               let monitor = {
+                       let mut channel_state = self.channel_state.lock().unwrap();
+                       match channel_state.by_id.get_mut(&msg.channel_id) {
                                Some(chan) => {
                                        if chan.get_their_node_id() != *their_node_id {
                                                return Err(HandleError{err: "Got a message for a channel from the wrong node!", msg: None})
                                        }
-                                       chan.update_fulfill_htlc(&msg)
+                                       chan.update_fulfill_htlc(&msg)?
                                },
                                None => return Err(HandleError{err: "Failed to find corresponding channel", msg: None})
                        }
                };
-               //TODO: Delay the claimed_funds relaying just like we do outbound relay!
-               self.claim_funds(msg.payment_preimage.clone());
-               res
+               if let Err(_e) = self.monitor.add_update_monitor(monitor.get_funding_txo().unwrap(), monitor) {
+                       unimplemented!();
+               }
+               Ok(())
        }
 
-       fn handle_update_fail_htlc(&self, their_node_id: &PublicKey, msg: &msgs::UpdateFailHTLC) -> Result<Option<(Vec<msgs::UpdateAddHTLC>, msgs::CommitmentSigned)>, HandleError> {
-               let mut channels = self.channels.lock().unwrap();
-               match channels.by_id.get_mut(&msg.channel_id) {
+       fn handle_update_fail_htlc(&self, their_node_id: &PublicKey, msg: &msgs::UpdateFailHTLC) -> Result<Option<msgs::HTLCFailChannelUpdate>, HandleError> {
+               let mut channel_state = self.channel_state.lock().unwrap();
+               let payment_hash = match channel_state.by_id.get_mut(&msg.channel_id) {
                        Some(chan) => {
                                if chan.get_their_node_id() != *their_node_id {
                                        return Err(HandleError{err: "Got a message for a channel from the wrong node!", msg: None})
                                }
-                               chan.update_fail_htlc(&msg)
+                               chan.update_fail_htlc(&msg, HTLCFailReason::ErrorPacket { err: msg.reason.clone() })
                        },
                        None => return Err(HandleError{err: "Failed to find corresponding channel", msg: None})
+               }?;
+
+               if let Some(pending_htlc) = channel_state.claimable_htlcs.get(&payment_hash) {
+                       match pending_htlc {
+                               &PendingOutboundHTLC::OutboundRoute { ref route, ref session_priv } => {
+                                       // Handle packed channel/node updates for passing back for the route handler
+                                       let mut packet_decrypted = msg.reason.data.clone();
+                                       let mut res = None;
+                                       Self::construct_onion_keys_callback(&self.secp_ctx, &route, &session_priv, |shared_secret, _, _, route_hop| {
+                                               if res.is_some() { return; }
+
+                                               let ammag = ChannelManager::gen_ammag_from_shared_secret(&shared_secret);
+
+                                               let mut decryption_tmp = Vec::with_capacity(packet_decrypted.len());
+                                               decryption_tmp.resize(packet_decrypted.len(), 0);
+                                               let mut chacha = ChaCha20::new(&ammag, &[0u8; 8]);
+                                               chacha.process(&packet_decrypted, &mut decryption_tmp[..]);
+                                               packet_decrypted = decryption_tmp;
+
+                                               if let Ok(err_packet) = msgs::DecodedOnionErrorPacket::decode(&packet_decrypted) {
+                                                       if err_packet.failuremsg.len() >= 2 {
+                                                               let um = ChannelManager::gen_um_from_shared_secret(&shared_secret);
+
+                                                               let mut hmac = Hmac::new(Sha256::new(), &um);
+                                                               hmac.input(&err_packet.encode()[32..]);
+                                                               let mut calc_tag = [0u8; 32];
+                                                               hmac.raw_result(&mut calc_tag);
+                                                               if crypto::util::fixed_time_eq(&calc_tag, &err_packet.hmac) {
+                                                                       const UNKNOWN_CHAN: u16 = 0x4000|10;
+                                                                       const TEMP_CHAN_FAILURE: u16 = 0x4000|7;
+                                                                       match byte_utils::slice_to_be16(&err_packet.failuremsg[0..2]) {
+                                                                               TEMP_CHAN_FAILURE => {
+                                                                                       if err_packet.failuremsg.len() >= 4 {
+                                                                                               let update_len = byte_utils::slice_to_be16(&err_packet.failuremsg[2..4]) as usize;
+                                                                                               if err_packet.failuremsg.len() >= 4 + update_len {
+                                                                                                       if let Ok(chan_update) = msgs::ChannelUpdate::decode(&err_packet.failuremsg[4..4 + update_len]) {
+                                                                                                               res = Some(msgs::HTLCFailChannelUpdate::ChannelUpdateMessage {
+                                                                                                                       msg: chan_update,
+                                                                                                               });
+                                                                                                       }
+                                                                                               }
+                                                                                       }
+                                                                               },
+                                                                               UNKNOWN_CHAN => {
+                                                                                       // No such next-hop. We know this came from the
+                                                                                       // current node as the HMAC validated.
+                                                                                       res = Some(msgs::HTLCFailChannelUpdate::ChannelClosed {
+                                                                                               short_channel_id: route_hop.short_channel_id
+                                                                                       });
+                                                                               },
+                                                                               _ => {}, //TODO: Enumerate all of these!
+                                                                       }
+                                                               }
+                                                       }
+                                               }
+                                       }).unwrap();
+                                       Ok(res)
+                               },
+                               _ => { Ok(None) },
+                       }
+               } else {
+                       Ok(None)
                }
-               //TODO Pass the reason backwards through the onion channel
        }
 
-       fn handle_update_fail_malformed_htlc(&self, their_node_id: &PublicKey, msg: &msgs::UpdateFailMalformedHTLC) -> Result<Option<(Vec<msgs::UpdateAddHTLC>, msgs::CommitmentSigned)>, HandleError> {
-               let mut channels = self.channels.lock().unwrap();
-               match channels.by_id.get_mut(&msg.channel_id) {
+       fn handle_update_fail_malformed_htlc(&self, their_node_id: &PublicKey, msg: &msgs::UpdateFailMalformedHTLC) -> Result<(), HandleError> {
+               let mut channel_state = self.channel_state.lock().unwrap();
+               match channel_state.by_id.get_mut(&msg.channel_id) {
                        Some(chan) => {
                                if chan.get_their_node_id() != *their_node_id {
                                        return Err(HandleError{err: "Got a message for a channel from the wrong node!", msg: None})
                                }
-                               chan.update_fail_malformed_htlc(&msg)
+                               chan.update_fail_malformed_htlc(&msg, HTLCFailReason::Reason { failure_code: msg.failure_code, data: Vec::new() })
                        },
                        None => return Err(HandleError{err: "Failed to find corresponding channel", msg: None})
                }
        }
 
-       fn handle_commitment_signed(&self, their_node_id: &PublicKey, msg: &msgs::CommitmentSigned) -> Result<msgs::RevokeAndACK, HandleError> {
-               let ((res, mut forwarding_infos), monitor) = {
-                       let mut channels = self.channels.lock().unwrap();
-                       match channels.by_id.get_mut(&msg.channel_id) {
+       fn handle_commitment_signed(&self, their_node_id: &PublicKey, msg: &msgs::CommitmentSigned) -> Result<(msgs::RevokeAndACK, Option<msgs::CommitmentSigned>), HandleError> {
+               let (revoke_and_ack, commitment_signed, chan_monitor) = {
+                       let mut channel_state = self.channel_state.lock().unwrap();
+                       match channel_state.by_id.get_mut(&msg.channel_id) {
                                Some(chan) => {
                                        if chan.get_their_node_id() != *their_node_id {
                                                return Err(HandleError{err: "Got a message for a channel from the wrong node!", msg: None})
                                        }
-                                       (chan.commitment_signed(&msg)?, chan.channel_monitor())
+                                       chan.commitment_signed(&msg)?
                                },
                                None => return Err(HandleError{err: "Failed to find corresponding channel", msg: None})
                        }
                };
-               //TODO: Only if we store HTLC sigs
-               self.monitor.add_update_monitor(monitor.get_funding_txo().unwrap(), monitor)?;
+               if let Err(_e) = self.monitor.add_update_monitor(chan_monitor.get_funding_txo().unwrap(), chan_monitor) {
+                       unimplemented!();
+               }
+
+               Ok((revoke_and_ack, commitment_signed))
+       }
+
+       fn handle_revoke_and_ack(&self, their_node_id: &PublicKey, msg: &msgs::RevokeAndACK) -> Result<Option<msgs::CommitmentUpdate>, HandleError> {
+               let (res, mut pending_forwards, mut pending_failures, chan_monitor) = {
+                       let mut channel_state = self.channel_state.lock().unwrap();
+                       match channel_state.by_id.get_mut(&msg.channel_id) {
+                               Some(chan) => {
+                                       if chan.get_their_node_id() != *their_node_id {
+                                               return Err(HandleError{err: "Got a message for a channel from the wrong node!", msg: None})
+                                       }
+                                       chan.revoke_and_ack(&msg)?
+                               },
+                               None => return Err(HandleError{err: "Failed to find corresponding channel", msg: None})
+                       }
+               };
+               if let Err(_e) = self.monitor.add_update_monitor(chan_monitor.get_funding_txo().unwrap(), chan_monitor) {
+                       unimplemented!();
+               }
+               for failure in pending_failures.drain(..) {
+                       self.fail_htlc_backwards_internal(self.channel_state.lock().unwrap(), &failure.0, failure.1);
+               }
 
                let mut forward_event = None;
-               {
-                       let mut pending_htlcs = self.pending_htlcs_forwardable.lock().unwrap();
-                       if pending_htlcs.forward_htlcs.is_empty() {
-                               let mut rng = thread_rng();
-                               forward_event = Some(Instant::now() + Duration::from_millis(((rng.next_f32() * 4.0 + 1.0) * MIN_HTLC_RELAY_HOLDING_CELL_MILLIS as f32) as u64));
-                               pending_htlcs.next_forward = forward_event.unwrap();
-                       }
-                       for forward_info in forwarding_infos.drain(..) {
-                               match pending_htlcs.forward_htlcs.entry(forward_info.short_channel_id) {
+               if !pending_forwards.is_empty() {
+                       let mut channel_state = self.channel_state.lock().unwrap();
+                       if channel_state.forward_htlcs.is_empty() {
+                               forward_event = Some(Instant::now() + Duration::from_millis(((rng::rand_f32() * 4.0 + 1.0) * MIN_HTLC_RELAY_HOLDING_CELL_MILLIS as f32) as u64));
+                               channel_state.next_forward = forward_event.unwrap();
+                       }
+                       for forward_info in pending_forwards.drain(..) {
+                               match channel_state.forward_htlcs.entry(forward_info.short_channel_id) {
                                        hash_map::Entry::Occupied(mut entry) => {
                                                entry.get_mut().push(forward_info);
                                        },
@@ -1139,27 +1703,9 @@ impl ChannelMessageHandler for ChannelManager {
                Ok(res)
        }
 
-       fn handle_revoke_and_ack(&self, their_node_id: &PublicKey, msg: &msgs::RevokeAndACK) -> Result<(), HandleError> {
-               let monitor = {
-                       let mut channels = self.channels.lock().unwrap();
-                       match channels.by_id.get_mut(&msg.channel_id) {
-                               Some(chan) => {
-                                       if chan.get_their_node_id() != *their_node_id {
-                                               return Err(HandleError{err: "Got a message for a channel from the wrong node!", msg: None})
-                                       }
-                                       chan.revoke_and_ack(&msg)?;
-                                       chan.channel_monitor()
-                               },
-                               None => return Err(HandleError{err: "Failed to find corresponding channel", msg: None})
-                       }
-               };
-               self.monitor.add_update_monitor(monitor.get_funding_txo().unwrap(), monitor)?;
-               Ok(())
-       }
-
        fn handle_update_fee(&self, their_node_id: &PublicKey, msg: &msgs::UpdateFee) -> Result<(), HandleError> {
-               let mut channels = self.channels.lock().unwrap();
-               match channels.by_id.get_mut(&msg.channel_id) {
+               let mut channel_state = self.channel_state.lock().unwrap();
+               match channel_state.by_id.get_mut(&msg.channel_id) {
                        Some(chan) => {
                                if chan.get_their_node_id() != *their_node_id {
                                        return Err(HandleError{err: "Got a message for a channel from the wrong node!", msg: None})
@@ -1172,8 +1718,8 @@ impl ChannelMessageHandler for ChannelManager {
 
        fn handle_announcement_signatures(&self, their_node_id: &PublicKey, msg: &msgs::AnnouncementSignatures) -> Result<(), HandleError> {
                let (chan_announcement, chan_update) = {
-                       let mut channels = self.channels.lock().unwrap();
-                       match channels.by_id.get_mut(&msg.channel_id) {
+                       let mut channel_state = self.channel_state.lock().unwrap();
+                       match channel_state.by_id.get_mut(&msg.channel_id) {
                                Some(chan) => {
                                        if chan.get_their_node_id() != *their_node_id {
                                                return Err(HandleError{err: "Got a message for a channel from the wrong node!", msg: None})
@@ -1207,10 +1753,56 @@ impl ChannelMessageHandler for ChannelManager {
                pending_events.push(events::Event::BroadcastChannelAnnouncement { msg: chan_announcement, update_msg: chan_update });
                Ok(())
        }
+
+       fn peer_disconnected(&self, their_node_id: &PublicKey, no_connection_possible: bool) {
+               let mut new_events = Vec::new();
+               {
+                       let mut channel_state_lock = self.channel_state.lock().unwrap();
+                       let channel_state = channel_state_lock.borrow_parts();
+                       let short_to_id = channel_state.short_to_id;
+                       if no_connection_possible {
+                               channel_state.by_id.retain(|_, chan| {
+                                       if chan.get_their_node_id() == *their_node_id {
+                                               if let Some(short_id) = chan.get_short_channel_id() {
+                                                       short_to_id.remove(&short_id);
+                                               }
+                                               let txn_to_broadcast = chan.force_shutdown();
+                                               for tx in txn_to_broadcast {
+                                                       self.tx_broadcaster.broadcast_transaction(&tx);
+                                               }
+                                               if let Ok(update) = self.get_channel_update(&chan) {
+                                                       new_events.push(events::Event::BroadcastChannelUpdate {
+                                                               msg: update
+                                                       });
+                                               }
+                                               false
+                                       } else {
+                                               true
+                                       }
+                               });
+                       } else {
+                               for chan in channel_state.by_id {
+                                       if chan.1.get_their_node_id() == *their_node_id {
+                                               //TODO: mark channel disabled (and maybe announce such after a timeout). Also
+                                               //fail and wipe any uncommitted outbound HTLCs as those are considered after
+                                               //reconnect.
+                                       }
+                               }
+                       }
+               }
+               if !new_events.is_empty() {
+                       let mut pending_events = self.pending_events.lock().unwrap();
+                       for event in new_events.drain(..) {
+                               pending_events.push(event);
+                       }
+               }
+       }
 }
 
 #[cfg(test)]
 mod tests {
+       use chain::chaininterface;
+       use chain::transaction::OutPoint;
        use ln::channelmanager::{ChannelManager,OnionKeys};
        use ln::router::{Route, RouteHop, Router};
        use ln::msgs;
@@ -1220,8 +1812,9 @@ mod tests {
 
        use bitcoin::util::misc::hex_bytes;
        use bitcoin::util::hash::Sha256dHash;
+       use bitcoin::util::uint::Uint256;
        use bitcoin::blockdata::block::BlockHeader;
-       use bitcoin::blockdata::transaction::Transaction;
+       use bitcoin::blockdata::transaction::{Transaction, TxOut};
        use bitcoin::network::constants::Network;
        use bitcoin::network::serialize::serialize;
        use bitcoin::network::serialize::BitcoinHash;
@@ -1234,9 +1827,11 @@ mod tests {
 
        use rand::{thread_rng,Rng};
 
-       use std::sync::Arc;
+       use std::collections::HashMap;
        use std::default::Default;
+       use std::sync::{Arc, Mutex};
        use std::time::Instant;
+       use std::mem;
 
        fn build_test_onion_keys() -> Vec<OnionKeys> {
                // Keys from BOLT 4, used in both test vector tests
@@ -1388,53 +1983,80 @@ mod tests {
                assert_eq!(onion_packet_5.data, hex_bytes("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").unwrap());
        }
 
-       static mut CHAN_COUNT: u16 = 0;
-       fn confirm_transaction(chain: &test_utils::TestWatchInterface, tx: &Transaction) {
+       fn confirm_transaction(chain: &chaininterface::ChainWatchInterfaceUtil, tx: &Transaction, chan_id: u32) {
                let mut header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-               let chan_id = unsafe { CHAN_COUNT };
-               chain.watch_util.block_connected_checked(&header, 1, &[tx; 1], &[chan_id as u32; 1]);
+               chain.block_connected_checked(&header, 1, &[tx; 1], &[chan_id; 1]);
                for i in 2..100 {
                        header = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-                       chain.watch_util.block_connected_checked(&header, i, &[tx; 0], &[0; 0]);
+                       chain.block_connected_checked(&header, i, &[tx; 0], &[0; 0]);
                }
        }
 
-       fn create_chan_between_nodes(node_a: &ChannelManager, chain_a: &test_utils::TestWatchInterface, node_b: &ChannelManager, chain_b: &test_utils::TestWatchInterface) -> (msgs::ChannelAnnouncement, msgs::ChannelUpdate, msgs::ChannelUpdate) {
-               let open_chan = node_a.create_channel(node_b.get_our_node_id(), (1 << 24) - 1, 42).unwrap();
-               let accept_chan = node_b.handle_open_channel(&node_a.get_our_node_id(), &open_chan).unwrap();
-               node_a.handle_accept_channel(&node_b.get_our_node_id(), &accept_chan).unwrap();
+       struct Node {
+               feeest: Arc<test_utils::TestFeeEstimator>,
+               chain_monitor: Arc<chaininterface::ChainWatchInterfaceUtil>,
+               tx_broadcaster: Arc<test_utils::TestBroadcaster>,
+               chan_monitor: Arc<test_utils::TestChannelMonitor>,
+               node_id: SecretKey,
+               node: Arc<ChannelManager>,
+               router: Router,
+       }
+
+       static mut CHAN_COUNT: u32 = 0;
+       fn create_chan_between_nodes(node_a: &Node, node_b: &Node) -> (msgs::ChannelAnnouncement, msgs::ChannelUpdate, msgs::ChannelUpdate, Uint256, Transaction) {
+               let open_chan = node_a.node.create_channel(node_b.node.get_our_node_id(), 100000, 42).unwrap();
+               let accept_chan = node_b.node.handle_open_channel(&node_a.node.get_our_node_id(), &open_chan).unwrap();
+               node_a.node.handle_accept_channel(&node_b.node.get_our_node_id(), &accept_chan).unwrap();
 
                let chan_id = unsafe { CHAN_COUNT };
-               let tx = Transaction { version: chan_id as u32, lock_time: 0, input: Vec::new(), output: Vec::new(), witness: Vec::new() };
-               let funding_output = (Sha256dHash::from_data(&serialize(&tx).unwrap()[..]), chan_id);
+               let tx;
+               let funding_output;
 
-               let events_1 = node_a.get_and_clear_pending_events();
+               let events_1 = node_a.node.get_and_clear_pending_events();
                assert_eq!(events_1.len(), 1);
                match events_1[0] {
-                       Event::FundingGenerationReady { ref temporary_channel_id, ref channel_value_satoshis, output_script: _, user_channel_id } => {
-                               assert_eq!(*channel_value_satoshis, (1 << 24) - 1);
+                       Event::FundingGenerationReady { ref temporary_channel_id, ref channel_value_satoshis, ref output_script, user_channel_id } => {
+                               assert_eq!(*channel_value_satoshis, 100000);
                                assert_eq!(user_channel_id, 42);
 
-                               node_a.funding_transaction_generated(&temporary_channel_id, funding_output.clone());
-                               //TODO: Check that we got added to chan_monitor_a!
+                               tx = Transaction { version: chan_id as u32, lock_time: 0, input: Vec::new(), output: vec![TxOut {
+                                       value: *channel_value_satoshis, script_pubkey: output_script.clone(),
+                               }]};
+                               funding_output = OutPoint::new(Sha256dHash::from_data(&serialize(&tx).unwrap()[..]), 0);
+
+                               node_a.node.funding_transaction_generated(&temporary_channel_id, funding_output);
+                               let mut added_monitors = node_a.chan_monitor.added_monitors.lock().unwrap();
+                               assert_eq!(added_monitors.len(), 1);
+                               assert_eq!(added_monitors[0].0, funding_output);
+                               added_monitors.clear();
                        },
                        _ => panic!("Unexpected event"),
                }
 
-               let events_2 = node_a.get_and_clear_pending_events();
+               let events_2 = node_a.node.get_and_clear_pending_events();
                assert_eq!(events_2.len(), 1);
                let funding_signed = match events_2[0] {
                        Event::SendFundingCreated { ref node_id, ref msg } => {
-                               assert_eq!(*node_id, node_b.get_our_node_id());
-                               node_b.handle_funding_created(&node_a.get_our_node_id(), msg).unwrap()
-                               //TODO: Check that we got added to chan_monitor_b!
+                               assert_eq!(*node_id, node_b.node.get_our_node_id());
+                               let res = node_b.node.handle_funding_created(&node_a.node.get_our_node_id(), msg).unwrap();
+                               let mut added_monitors = node_b.chan_monitor.added_monitors.lock().unwrap();
+                               assert_eq!(added_monitors.len(), 1);
+                               assert_eq!(added_monitors[0].0, funding_output);
+                               added_monitors.clear();
+                               res
                        },
                        _ => panic!("Unexpected event"),
                };
 
-               node_a.handle_funding_signed(&node_b.get_our_node_id(), &funding_signed).unwrap();
+               node_a.node.handle_funding_signed(&node_b.node.get_our_node_id(), &funding_signed).unwrap();
+               {
+                       let mut added_monitors = node_a.chan_monitor.added_monitors.lock().unwrap();
+                       assert_eq!(added_monitors.len(), 1);
+                       assert_eq!(added_monitors[0].0, funding_output);
+                       added_monitors.clear();
+               }
 
-               let events_3 = node_a.get_and_clear_pending_events();
+               let events_3 = node_a.node.get_and_clear_pending_events();
                assert_eq!(events_3.len(), 1);
                match events_3[0] {
                        Event::FundingBroadcastSafe { ref funding_txo, user_channel_id } => {
@@ -1444,32 +2066,35 @@ mod tests {
                        _ => panic!("Unexpected event"),
                };
 
-               confirm_transaction(&chain_a, &tx);
-               let events_4 = node_a.get_and_clear_pending_events();
+               confirm_transaction(&node_a.chain_monitor, &tx, chan_id);
+               let events_4 = node_a.node.get_and_clear_pending_events();
                assert_eq!(events_4.len(), 1);
                match events_4[0] {
                        Event::SendFundingLocked { ref node_id, ref msg, ref announcement_sigs } => {
-                               assert_eq!(*node_id, node_b.get_our_node_id());
+                               assert_eq!(*node_id, node_b.node.get_our_node_id());
                                assert!(announcement_sigs.is_none());
-                               node_b.handle_funding_locked(&node_a.get_our_node_id(), msg).unwrap()
+                               node_b.node.handle_funding_locked(&node_a.node.get_our_node_id(), msg).unwrap()
                        },
                        _ => panic!("Unexpected event"),
                };
 
-               confirm_transaction(&chain_b, &tx);
-               let events_5 = node_b.get_and_clear_pending_events();
+               let channel_id;
+
+               confirm_transaction(&node_b.chain_monitor, &tx, chan_id);
+               let events_5 = node_b.node.get_and_clear_pending_events();
                assert_eq!(events_5.len(), 1);
                let as_announcement_sigs = match events_5[0] {
                        Event::SendFundingLocked { ref node_id, ref msg, ref announcement_sigs } => {
-                               assert_eq!(*node_id, node_a.get_our_node_id());
-                               let as_announcement_sigs = node_a.handle_funding_locked(&node_b.get_our_node_id(), msg).unwrap().unwrap();
-                               node_a.handle_announcement_signatures(&node_b.get_our_node_id(), &(*announcement_sigs).clone().unwrap()).unwrap();
+                               assert_eq!(*node_id, node_a.node.get_our_node_id());
+                               channel_id = msg.channel_id.clone();
+                               let as_announcement_sigs = node_a.node.handle_funding_locked(&node_b.node.get_our_node_id(), msg).unwrap().unwrap();
+                               node_a.node.handle_announcement_signatures(&node_b.node.get_our_node_id(), &(*announcement_sigs).clone().unwrap()).unwrap();
                                as_announcement_sigs
                        },
                        _ => panic!("Unexpected event"),
                };
 
-               let events_6 = node_a.get_and_clear_pending_events();
+               let events_6 = node_a.node.get_and_clear_pending_events();
                assert_eq!(events_6.len(), 1);
                let (announcement, as_update) = match events_6[0] {
                        Event::BroadcastChannelAnnouncement { ref msg, ref update_msg } => {
@@ -1478,8 +2103,8 @@ mod tests {
                        _ => panic!("Unexpected event"),
                };
 
-               node_b.handle_announcement_signatures(&node_a.get_our_node_id(), &as_announcement_sigs).unwrap();
-               let events_7 = node_b.get_and_clear_pending_events();
+               node_b.node.handle_announcement_signatures(&node_a.node.get_our_node_id(), &as_announcement_sigs).unwrap();
+               let events_7 = node_b.node.get_and_clear_pending_events();
                assert_eq!(events_7.len(), 1);
                let bs_update = match events_7[0] {
                        Event::BroadcastChannelAnnouncement { ref msg, ref update_msg } => {
@@ -1493,7 +2118,75 @@ mod tests {
                        CHAN_COUNT += 1;
                }
 
-               ((*announcement).clone(), (*as_update).clone(), (*bs_update).clone())
+               ((*announcement).clone(), (*as_update).clone(), (*bs_update).clone(), channel_id, tx)
+       }
+
+       fn create_announced_chan_between_nodes(nodes: &Vec<Node>, a: usize, b: usize) -> (msgs::ChannelUpdate, msgs::ChannelUpdate, Uint256, Transaction) {
+               let chan_announcement = create_chan_between_nodes(&nodes[a], &nodes[b]);
+               for node in nodes {
+                       assert!(node.router.handle_channel_announcement(&chan_announcement.0).unwrap());
+                       node.router.handle_channel_update(&chan_announcement.1).unwrap();
+                       node.router.handle_channel_update(&chan_announcement.2).unwrap();
+               }
+               (chan_announcement.1, chan_announcement.2, chan_announcement.3, chan_announcement.4)
+       }
+
+       fn close_channel(outbound_node: &Node, inbound_node: &Node, channel_id: &Uint256, funding_tx: Transaction, close_inbound_first: bool) -> (msgs::ChannelUpdate, msgs::ChannelUpdate) {
+               let (node_a, broadcaster_a) = if close_inbound_first { (&inbound_node.node, &inbound_node.tx_broadcaster) } else { (&outbound_node.node, &outbound_node.tx_broadcaster) };
+               let (node_b, broadcaster_b) = if close_inbound_first { (&outbound_node.node, &outbound_node.tx_broadcaster) } else { (&inbound_node.node, &inbound_node.tx_broadcaster) };
+               let (tx_a, tx_b);
+
+               let shutdown_a = node_a.close_channel(channel_id).unwrap();
+               let (shutdown_b, mut closing_signed_b) = node_b.handle_shutdown(&node_a.get_our_node_id(), &shutdown_a).unwrap();
+               if !close_inbound_first {
+                       assert!(closing_signed_b.is_none());
+               }
+               let (empty_a, mut closing_signed_a) = node_a.handle_shutdown(&node_b.get_our_node_id(), &shutdown_b.unwrap()).unwrap();
+               assert!(empty_a.is_none());
+               if close_inbound_first {
+                       assert!(closing_signed_a.is_none());
+                       closing_signed_a = node_a.handle_closing_signed(&node_b.get_our_node_id(), &closing_signed_b.unwrap()).unwrap();
+                       assert_eq!(broadcaster_a.txn_broadcasted.lock().unwrap().len(), 1);
+                       tx_a = broadcaster_a.txn_broadcasted.lock().unwrap().remove(0);
+
+                       let empty_b = node_b.handle_closing_signed(&node_a.get_our_node_id(), &closing_signed_a.unwrap()).unwrap();
+                       assert!(empty_b.is_none());
+                       assert_eq!(broadcaster_b.txn_broadcasted.lock().unwrap().len(), 1);
+                       tx_b = broadcaster_b.txn_broadcasted.lock().unwrap().remove(0);
+               } else {
+                       closing_signed_b = node_b.handle_closing_signed(&node_a.get_our_node_id(), &closing_signed_a.unwrap()).unwrap();
+                       assert_eq!(broadcaster_b.txn_broadcasted.lock().unwrap().len(), 1);
+                       tx_b = broadcaster_b.txn_broadcasted.lock().unwrap().remove(0);
+
+                       let empty_a2 = node_a.handle_closing_signed(&node_b.get_our_node_id(), &closing_signed_b.unwrap()).unwrap();
+                       assert!(empty_a2.is_none());
+                       assert_eq!(broadcaster_a.txn_broadcasted.lock().unwrap().len(), 1);
+                       tx_a = broadcaster_a.txn_broadcasted.lock().unwrap().remove(0);
+               }
+               assert_eq!(tx_a, tx_b);
+               let mut funding_tx_map = HashMap::new();
+               funding_tx_map.insert(funding_tx.txid(), funding_tx);
+               tx_a.verify(&funding_tx_map).unwrap();
+
+               let events_1 = node_a.get_and_clear_pending_events();
+               assert_eq!(events_1.len(), 1);
+               let as_update = match events_1[0] {
+                       Event::BroadcastChannelUpdate { ref msg } => {
+                               msg.clone()
+                       },
+                       _ => panic!("Unexpected event"),
+               };
+
+               let events_2 = node_b.get_and_clear_pending_events();
+               assert_eq!(events_2.len(), 1);
+               let bs_update = match events_2[0] {
+                       Event::BroadcastChannelUpdate { ref msg } => {
+                               msg.clone()
+                       },
+                       _ => panic!("Unexpected event"),
+               };
+
+               (as_update, bs_update)
        }
 
        struct SendEvent {
@@ -1504,7 +2197,7 @@ mod tests {
        impl SendEvent {
                fn from_event(event: Event) -> SendEvent {
                        match event {
-                               Event::SendHTLCs{ node_id, msgs, commitment_msg } => {
+                               Event::SendHTLCs { node_id, msgs, commitment_msg } => {
                                        SendEvent { node_id: node_id, msgs: msgs, commitment_msg: commitment_msg }
                                },
                                _ => panic!("Unexpected event type!"),
@@ -1513,89 +2206,158 @@ mod tests {
        }
 
        static mut PAYMENT_COUNT: u8 = 0;
-       fn send_payment(origin_node: &ChannelManager, origin_router: &Router, expected_route: &[&ChannelManager]) {
-               let route = origin_router.get_route(&expected_route.last().unwrap().get_our_node_id(), &Vec::new(), 1000000, 142).unwrap();
-               assert_eq!(route.hops.len(), expected_route.len());
-               for (node, hop) in expected_route.iter().zip(route.hops.iter()) {
-                       assert_eq!(hop.pubkey, node.get_our_node_id());
-               }
-
-               let payment_preimage = unsafe { [PAYMENT_COUNT; 32] };
+       fn send_along_route(origin_node: &Node, route: Route, expected_route: &[&Node], recv_value: u64) -> ([u8; 32], [u8; 32]) {
+               let our_payment_preimage = unsafe { [PAYMENT_COUNT; 32] };
                unsafe { PAYMENT_COUNT += 1 };
                let our_payment_hash = {
                        let mut sha = Sha256::new();
-                       sha.input(&payment_preimage[..]);
+                       sha.input(&our_payment_preimage[..]);
                        let mut ret = [0; 32];
                        sha.result(&mut ret);
                        ret
                };
 
                let mut payment_event = {
-                       let msgs = origin_node.send_payment(&route, our_payment_hash).unwrap().unwrap();
-                       SendEvent {
-                               node_id: expected_route[0].get_our_node_id(),
-                               msgs: vec!(msgs.0),
-                               commitment_msg: msgs.1,
+                       origin_node.node.send_payment(route, our_payment_hash).unwrap();
+                       {
+                               let mut added_monitors = origin_node.chan_monitor.added_monitors.lock().unwrap();
+                               assert_eq!(added_monitors.len(), 1);
+                               added_monitors.clear();
                        }
+
+                       let mut events = origin_node.node.get_and_clear_pending_events();
+                       assert_eq!(events.len(), 1);
+                       SendEvent::from_event(events.remove(0))
                };
                let mut prev_node = origin_node;
 
-               for (idx, node) in expected_route.iter().enumerate() {
-                       assert_eq!(node.get_our_node_id(), payment_event.node_id);
+               for (idx, &node) in expected_route.iter().enumerate() {
+                       assert_eq!(node.node.get_our_node_id(), payment_event.node_id);
+
+                       node.node.handle_update_add_htlc(&prev_node.node.get_our_node_id(), &payment_event.msgs[0]).unwrap();
+                       {
+                               let added_monitors = node.chan_monitor.added_monitors.lock().unwrap();
+                               assert_eq!(added_monitors.len(), 0);
+                       }
 
-                       node.handle_update_add_htlc(&prev_node.get_our_node_id(), &payment_event.msgs[0]).unwrap();
-                       let revoke_and_ack = node.handle_commitment_signed(&prev_node.get_our_node_id(), &payment_event.commitment_msg).unwrap();
-                       prev_node.handle_revoke_and_ack(&node.get_our_node_id(), &revoke_and_ack).unwrap();
+                       let revoke_and_ack = node.node.handle_commitment_signed(&prev_node.node.get_our_node_id(), &payment_event.commitment_msg).unwrap();
+                       {
+                               let mut added_monitors = node.chan_monitor.added_monitors.lock().unwrap();
+                               assert_eq!(added_monitors.len(), 1);
+                               added_monitors.clear();
+                       }
+                       assert!(prev_node.node.handle_revoke_and_ack(&node.node.get_our_node_id(), &revoke_and_ack.0).unwrap().is_none());
+                       let prev_revoke_and_ack = prev_node.node.handle_commitment_signed(&node.node.get_our_node_id(), &revoke_and_ack.1.unwrap()).unwrap();
+                       {
+                               let mut added_monitors = prev_node.chan_monitor.added_monitors.lock().unwrap();
+                               assert_eq!(added_monitors.len(), 2);
+                               added_monitors.clear();
+                       }
+                       assert!(node.node.handle_revoke_and_ack(&prev_node.node.get_our_node_id(), &prev_revoke_and_ack.0).unwrap().is_none());
+                       assert!(prev_revoke_and_ack.1.is_none());
+                       {
+                               let mut added_monitors = node.chan_monitor.added_monitors.lock().unwrap();
+                               assert_eq!(added_monitors.len(), 1);
+                               added_monitors.clear();
+                       }
 
-                       let events_1 = node.get_and_clear_pending_events();
+                       let events_1 = node.node.get_and_clear_pending_events();
                        assert_eq!(events_1.len(), 1);
                        match events_1[0] {
                                Event::PendingHTLCsForwardable { .. } => { },
                                _ => panic!("Unexpected event"),
                        };
 
-                       node.pending_htlcs_forwardable.lock().unwrap().next_forward = Instant::now();
-                       node.process_pending_htlc_forward();
+                       node.node.channel_state.lock().unwrap().next_forward = Instant::now();
+                       node.node.process_pending_htlc_forward();
 
-                       let mut events_2 = node.get_and_clear_pending_events();
+                       let mut events_2 = node.node.get_and_clear_pending_events();
                        assert_eq!(events_2.len(), 1);
                        if idx == expected_route.len() - 1 {
                                match events_2[0] {
                                        Event::PaymentReceived { ref payment_hash, amt } => {
                                                assert_eq!(our_payment_hash, *payment_hash);
-                                               assert_eq!(amt, 1000000);
+                                               assert_eq!(amt, recv_value);
                                        },
                                        _ => panic!("Unexpected event"),
                                }
                        } else {
-                               for event in events_2.drain(..) {
-                                       payment_event = SendEvent::from_event(event);
+                               {
+                                       let mut added_monitors = node.chan_monitor.added_monitors.lock().unwrap();
+                                       assert_eq!(added_monitors.len(), 1);
+                                       added_monitors.clear();
                                }
+                               payment_event = SendEvent::from_event(events_2.remove(0));
                                assert_eq!(payment_event.msgs.len(), 1);
                        }
 
                        prev_node = node;
                }
 
-               assert!(expected_route.last().unwrap().claim_funds(payment_preimage));
+               (our_payment_preimage, our_payment_hash)
+       }
+
+       fn claim_payment(origin_node: &Node, expected_route: &[&Node], our_payment_preimage: [u8; 32]) {
+               assert!(expected_route.last().unwrap().node.claim_funds(our_payment_preimage));
+               {
+                       let mut added_monitors = expected_route.last().unwrap().chan_monitor.added_monitors.lock().unwrap();
+                       assert_eq!(added_monitors.len(), 1);
+                       added_monitors.clear();
+               }
 
-               let mut expected_next_node = expected_route.last().unwrap().get_our_node_id();
+               let mut next_msgs: Option<(msgs::UpdateFulfillHTLC, msgs::CommitmentSigned)> = None;
+               macro_rules! update_fulfill_dance {
+                       ($node: expr, $prev_node: expr, $last_node: expr) => {
+                               {
+                                       $node.node.handle_update_fulfill_htlc(&$prev_node.node.get_our_node_id(), &next_msgs.as_ref().unwrap().0).unwrap();
+                                       {
+                                               let mut added_monitors = $node.chan_monitor.added_monitors.lock().unwrap();
+                                               if $last_node {
+                                                       assert_eq!(added_monitors.len(), 1);
+                                               } else {
+                                                       assert_eq!(added_monitors.len(), 2);
+                                                       assert!(added_monitors[0].0 != added_monitors[1].0);
+                                               }
+                                               added_monitors.clear();
+                                       }
+                                       let revoke_and_commit = $node.node.handle_commitment_signed(&$prev_node.node.get_our_node_id(), &next_msgs.as_ref().unwrap().1).unwrap();
+                                       {
+                                               let mut added_monitors = $node.chan_monitor.added_monitors.lock().unwrap();
+                                               assert_eq!(added_monitors.len(), 1);
+                                               added_monitors.clear();
+                                       }
+                                       assert!($prev_node.node.handle_revoke_and_ack(&$node.node.get_our_node_id(), &revoke_and_commit.0).unwrap().is_none());
+                                       let revoke_and_ack = $prev_node.node.handle_commitment_signed(&$node.node.get_our_node_id(), &revoke_and_commit.1.unwrap()).unwrap();
+                                       assert!(revoke_and_ack.1.is_none());
+                                       {
+                                               let mut added_monitors = $prev_node.chan_monitor.added_monitors.lock().unwrap();
+                                               assert_eq!(added_monitors.len(), 2);
+                                               added_monitors.clear();
+                                       }
+                                       assert!($node.node.handle_revoke_and_ack(&$prev_node.node.get_our_node_id(), &revoke_and_ack.0).unwrap().is_none());
+                                       {
+                                               let mut added_monitors = $node.chan_monitor.added_monitors.lock().unwrap();
+                                               assert_eq!(added_monitors.len(), 1);
+                                               added_monitors.clear();
+                                       }
+                               }
+                       }
+               }
+
+               let mut expected_next_node = expected_route.last().unwrap().node.get_our_node_id();
                let mut prev_node = expected_route.last().unwrap();
-               let mut next_msg = None;
                for node in expected_route.iter().rev() {
-                       assert_eq!(expected_next_node, node.get_our_node_id());
-                       match next_msg {
-                               Some(msg) => {
-                                       assert!(node.handle_update_fulfill_htlc(&prev_node.get_our_node_id(), &msg).unwrap().is_none());
-                               }, None => {}
+                       assert_eq!(expected_next_node, node.node.get_our_node_id());
+                       if next_msgs.is_some() {
+                               update_fulfill_dance!(node, prev_node, false);
                        }
 
-                       let events = node.get_and_clear_pending_events();
+                       let events = node.node.get_and_clear_pending_events();
                        assert_eq!(events.len(), 1);
                        match events[0] {
-                               Event::SendFulfillHTLC { ref node_id, ref msg } => {
+                               Event::SendFulfillHTLC { ref node_id, ref msg, ref commitment_msg } => {
                                        expected_next_node = node_id.clone();
-                                       next_msg = Some(msg.clone());
+                                       next_msgs = Some((msg.clone(), commitment_msg.clone()));
                                },
                                _ => panic!("Unexpected event"),
                        };
@@ -1603,99 +2365,535 @@ mod tests {
                        prev_node = node;
                }
 
-               assert_eq!(expected_next_node, origin_node.get_our_node_id());
-               assert!(origin_node.handle_update_fulfill_htlc(&expected_route.first().unwrap().get_our_node_id(), &next_msg.unwrap()).unwrap().is_none());
+               assert_eq!(expected_next_node, origin_node.node.get_our_node_id());
+               update_fulfill_dance!(origin_node, expected_route.first().unwrap(), true);
+
+               let events = origin_node.node.get_and_clear_pending_events();
+               assert_eq!(events.len(), 1);
+               match events[0] {
+                       Event::PaymentSent { payment_preimage } => {
+                               assert_eq!(payment_preimage, our_payment_preimage);
+                       },
+                       _ => panic!("Unexpected event"),
+               }
+       }
+
+       const TEST_FINAL_CLTV: u32 = 32;
+
+       fn route_payment(origin_node: &Node, expected_route: &[&Node], recv_value: u64) -> ([u8; 32], [u8; 32]) {
+               let route = origin_node.router.get_route(&expected_route.last().unwrap().node.get_our_node_id(), &Vec::new(), recv_value, TEST_FINAL_CLTV).unwrap();
+               assert_eq!(route.hops.len(), expected_route.len());
+               for (node, hop) in expected_route.iter().zip(route.hops.iter()) {
+                       assert_eq!(hop.pubkey, node.node.get_our_node_id());
+               }
+
+               send_along_route(origin_node, route, expected_route, recv_value)
+       }
+
+       fn route_over_limit(origin_node: &Node, expected_route: &[&Node], recv_value: u64) {
+               let route = origin_node.router.get_route(&expected_route.last().unwrap().node.get_our_node_id(), &Vec::new(), recv_value, TEST_FINAL_CLTV).unwrap();
+               assert_eq!(route.hops.len(), expected_route.len());
+               for (node, hop) in expected_route.iter().zip(route.hops.iter()) {
+                       assert_eq!(hop.pubkey, node.node.get_our_node_id());
+               }
+
+               let our_payment_preimage = unsafe { [PAYMENT_COUNT; 32] };
+               unsafe { PAYMENT_COUNT += 1 };
+               let our_payment_hash = {
+                       let mut sha = Sha256::new();
+                       sha.input(&our_payment_preimage[..]);
+                       let mut ret = [0; 32];
+                       sha.result(&mut ret);
+                       ret
+               };
+
+               let err = origin_node.node.send_payment(route, our_payment_hash).err().unwrap();
+               assert_eq!(err.err, "Cannot send value that would put us over our max HTLC value in flight");
+       }
+
+       fn send_payment(origin: &Node, expected_route: &[&Node], recv_value: u64) {
+               let our_payment_preimage = route_payment(&origin, expected_route, recv_value).0;
+               claim_payment(&origin, expected_route, our_payment_preimage);
+       }
+
+       fn fail_payment(origin_node: &Node, expected_route: &[&Node], our_payment_hash: [u8; 32]) {
+               assert!(expected_route.last().unwrap().node.fail_htlc_backwards(&our_payment_hash));
+               {
+                       let mut added_monitors = expected_route.last().unwrap().chan_monitor.added_monitors.lock().unwrap();
+                       assert_eq!(added_monitors.len(), 1);
+                       added_monitors.clear();
+               }
+
+               let mut next_msgs: Option<(msgs::UpdateFailHTLC, msgs::CommitmentSigned)> = None;
+               macro_rules! update_fail_dance {
+                       ($node: expr, $prev_node: expr, $last_node: expr) => {
+                               {
+                                       $node.node.handle_update_fail_htlc(&$prev_node.node.get_our_node_id(), &next_msgs.as_ref().unwrap().0).unwrap();
+                                       let revoke_and_commit = $node.node.handle_commitment_signed(&$prev_node.node.get_our_node_id(), &next_msgs.as_ref().unwrap().1).unwrap();
+
+                                       {
+                                               let mut added_monitors = $node.chan_monitor.added_monitors.lock().unwrap();
+                                               assert_eq!(added_monitors.len(), 1);
+                                               added_monitors.clear();
+                                       }
+                                       assert!($prev_node.node.handle_revoke_and_ack(&$node.node.get_our_node_id(), &revoke_and_commit.0).unwrap().is_none());
+                                       {
+                                               let mut added_monitors = $prev_node.chan_monitor.added_monitors.lock().unwrap();
+                                               assert_eq!(added_monitors.len(), 1);
+                                               added_monitors.clear();
+                                       }
+                                       let revoke_and_ack = $prev_node.node.handle_commitment_signed(&$node.node.get_our_node_id(), &revoke_and_commit.1.unwrap()).unwrap();
+                                       {
+                                               let mut added_monitors = $prev_node.chan_monitor.added_monitors.lock().unwrap();
+                                               assert_eq!(added_monitors.len(), 1);
+                                               added_monitors.clear();
+                                       }
+                                       assert!(revoke_and_ack.1.is_none());
+                                       assert!($node.node.get_and_clear_pending_events().is_empty());
+                                       assert!($node.node.handle_revoke_and_ack(&$prev_node.node.get_our_node_id(), &revoke_and_ack.0).unwrap().is_none());
+                                       {
+                                               let mut added_monitors = $node.chan_monitor.added_monitors.lock().unwrap();
+                                               if $last_node {
+                                                       assert_eq!(added_monitors.len(), 1);
+                                               } else {
+                                                       assert_eq!(added_monitors.len(), 2);
+                                                       assert!(added_monitors[0].0 != added_monitors[1].0);
+                                               }
+                                               added_monitors.clear();
+                                       }
+                               }
+                       }
+               }
+
+               let mut expected_next_node = expected_route.last().unwrap().node.get_our_node_id();
+               let mut prev_node = expected_route.last().unwrap();
+               for node in expected_route.iter().rev() {
+                       assert_eq!(expected_next_node, node.node.get_our_node_id());
+                       if next_msgs.is_some() {
+                               update_fail_dance!(node, prev_node, false);
+                       }
+
+                       let events = node.node.get_and_clear_pending_events();
+                       assert_eq!(events.len(), 1);
+                       match events[0] {
+                               Event::SendFailHTLC { ref node_id, ref msg, ref commitment_msg } => {
+                                       expected_next_node = node_id.clone();
+                                       next_msgs = Some((msg.clone(), commitment_msg.clone()));
+                               },
+                               _ => panic!("Unexpected event"),
+                       };
+
+                       prev_node = node;
+               }
+
+               assert_eq!(expected_next_node, origin_node.node.get_our_node_id());
+               update_fail_dance!(origin_node, expected_route.first().unwrap(), true);
+
+               let events = origin_node.node.get_and_clear_pending_events();
+               assert_eq!(events.len(), 1);
+               match events[0] {
+                       Event::PaymentFailed { payment_hash } => {
+                               assert_eq!(payment_hash, our_payment_hash);
+                       },
+                       _ => panic!("Unexpected event"),
+               }
+       }
+
+       fn create_network(node_count: usize) -> Vec<Node> {
+               let mut nodes = Vec::new();
+               let mut rng = thread_rng();
+               let secp_ctx = Secp256k1::new();
+
+               for _ in 0..node_count {
+                       let feeest = Arc::new(test_utils::TestFeeEstimator { sat_per_vbyte: 1 });
+                       let chain_monitor = Arc::new(chaininterface::ChainWatchInterfaceUtil::new());
+                       let tx_broadcaster = Arc::new(test_utils::TestBroadcaster{txn_broadcasted: Mutex::new(Vec::new())});
+                       let chan_monitor = Arc::new(test_utils::TestChannelMonitor::new(chain_monitor.clone(), tx_broadcaster.clone()));
+                       let node_id = {
+                               let mut key_slice = [0; 32];
+                               rng.fill_bytes(&mut key_slice);
+                               SecretKey::from_slice(&secp_ctx, &key_slice).unwrap()
+                       };
+                       let node = ChannelManager::new(node_id.clone(), 0, true, Network::Testnet, feeest.clone(), chan_monitor.clone(), chain_monitor.clone(), tx_broadcaster.clone()).unwrap();
+                       let router = Router::new(PublicKey::from_secret_key(&secp_ctx, &node_id).unwrap());
+                       nodes.push(Node { feeest, chain_monitor, tx_broadcaster, chan_monitor, node_id, node, router });
+               }
+
+               nodes
        }
 
        #[test]
        fn fake_network_test() {
                // Simple test which builds a network of ChannelManagers, connects them to each other, and
                // tests that payments get routed and transactions broadcast in semi-reasonable ways.
-               let mut rng = thread_rng();
-               let secp_ctx = Secp256k1::new();
+               let nodes = create_network(4);
 
-               let feeest_1 = Arc::new(test_utils::TestFeeEstimator { sat_per_vbyte: 1 });
-               let chain_monitor_1 = Arc::new(test_utils::TestWatchInterface::new());
-               let chan_monitor_1 = Arc::new(test_utils::TestChannelMonitor{});
-               let node_id_1 = {
-                       let mut key_slice = [0; 32];
-                       rng.fill_bytes(&mut key_slice);
-                       SecretKey::from_slice(&secp_ctx, &key_slice).unwrap()
-               };
-               let node_1 = ChannelManager::new(node_id_1.clone(), 0, true, Network::Testnet, feeest_1.clone(), chan_monitor_1.clone(), chain_monitor_1.clone()).unwrap();
-               let router_1 = Router::new(PublicKey::from_secret_key(&secp_ctx, &node_id_1).unwrap());
-
-               let feeest_2 = Arc::new(test_utils::TestFeeEstimator { sat_per_vbyte: 1 });
-               let chain_monitor_2 = Arc::new(test_utils::TestWatchInterface::new());
-               let chan_monitor_2 = Arc::new(test_utils::TestChannelMonitor{});
-               let node_id_2 = {
-                       let mut key_slice = [0; 32];
-                       rng.fill_bytes(&mut key_slice);
-                       SecretKey::from_slice(&secp_ctx, &key_slice).unwrap()
-               };
-               let node_2 = ChannelManager::new(node_id_2.clone(), 0, true, Network::Testnet, feeest_2.clone(), chan_monitor_2.clone(), chain_monitor_2.clone()).unwrap();
-               let router_2 = Router::new(PublicKey::from_secret_key(&secp_ctx, &node_id_2).unwrap());
-
-               let feeest_3 = Arc::new(test_utils::TestFeeEstimator { sat_per_vbyte: 1 });
-               let chain_monitor_3 = Arc::new(test_utils::TestWatchInterface::new());
-               let chan_monitor_3 = Arc::new(test_utils::TestChannelMonitor{});
-               let node_id_3 = {
-                       let mut key_slice = [0; 32];
-                       rng.fill_bytes(&mut key_slice);
-                       SecretKey::from_slice(&secp_ctx, &key_slice).unwrap()
+               // Create some initial channels
+               let chan_1 = create_announced_chan_between_nodes(&nodes, 0, 1);
+               let chan_2 = create_announced_chan_between_nodes(&nodes, 1, 2);
+               let chan_3 = create_announced_chan_between_nodes(&nodes, 2, 3);
+
+               // Rebalance the network a bit by relaying one payment through all the channels...
+               send_payment(&nodes[0], &vec!(&nodes[1], &nodes[2], &nodes[3])[..], 8000000);
+               send_payment(&nodes[0], &vec!(&nodes[1], &nodes[2], &nodes[3])[..], 8000000);
+               send_payment(&nodes[0], &vec!(&nodes[1], &nodes[2], &nodes[3])[..], 8000000);
+               send_payment(&nodes[0], &vec!(&nodes[1], &nodes[2], &nodes[3])[..], 8000000);
+
+               // Send some more payments
+               send_payment(&nodes[1], &vec!(&nodes[2], &nodes[3])[..], 1000000);
+               send_payment(&nodes[3], &vec!(&nodes[2], &nodes[1], &nodes[0])[..], 1000000);
+               send_payment(&nodes[3], &vec!(&nodes[2], &nodes[1])[..], 1000000);
+
+               // Test failure packets
+               let payment_hash_1 = route_payment(&nodes[0], &vec!(&nodes[1], &nodes[2], &nodes[3])[..], 1000000).1;
+               fail_payment(&nodes[0], &vec!(&nodes[1], &nodes[2], &nodes[3])[..], payment_hash_1);
+
+               // Add a new channel that skips 3
+               let chan_4 = create_announced_chan_between_nodes(&nodes, 1, 3);
+
+               send_payment(&nodes[0], &vec!(&nodes[1], &nodes[3])[..], 1000000);
+               send_payment(&nodes[2], &vec!(&nodes[3])[..], 1000000);
+               send_payment(&nodes[1], &vec!(&nodes[3])[..], 8000000);
+               send_payment(&nodes[1], &vec!(&nodes[3])[..], 8000000);
+               send_payment(&nodes[1], &vec!(&nodes[3])[..], 8000000);
+               send_payment(&nodes[1], &vec!(&nodes[3])[..], 8000000);
+               send_payment(&nodes[1], &vec!(&nodes[3])[..], 8000000);
+
+               // Do some rebalance loop payments, simultaneously
+               let mut hops = Vec::with_capacity(3);
+               hops.push(RouteHop {
+                       pubkey: nodes[2].node.get_our_node_id(),
+                       short_channel_id: chan_2.0.contents.short_channel_id,
+                       fee_msat: 0,
+                       cltv_expiry_delta: chan_3.0.contents.cltv_expiry_delta as u32
+               });
+               hops.push(RouteHop {
+                       pubkey: nodes[3].node.get_our_node_id(),
+                       short_channel_id: chan_3.0.contents.short_channel_id,
+                       fee_msat: 0,
+                       cltv_expiry_delta: chan_4.1.contents.cltv_expiry_delta as u32
+               });
+               hops.push(RouteHop {
+                       pubkey: nodes[1].node.get_our_node_id(),
+                       short_channel_id: chan_4.0.contents.short_channel_id,
+                       fee_msat: 1000000,
+                       cltv_expiry_delta: TEST_FINAL_CLTV,
+               });
+               hops[1].fee_msat = chan_4.1.contents.fee_base_msat as u64 + chan_4.1.contents.fee_proportional_millionths as u64 * hops[2].fee_msat as u64 / 1000000;
+               hops[0].fee_msat = chan_3.0.contents.fee_base_msat as u64 + chan_3.0.contents.fee_proportional_millionths as u64 * hops[1].fee_msat as u64 / 1000000;
+               let payment_preimage_1 = send_along_route(&nodes[1], Route { hops }, &vec!(&nodes[2], &nodes[3], &nodes[1])[..], 1000000).0;
+
+               let mut hops = Vec::with_capacity(3);
+               hops.push(RouteHop {
+                       pubkey: nodes[3].node.get_our_node_id(),
+                       short_channel_id: chan_4.0.contents.short_channel_id,
+                       fee_msat: 0,
+                       cltv_expiry_delta: chan_3.1.contents.cltv_expiry_delta as u32
+               });
+               hops.push(RouteHop {
+                       pubkey: nodes[2].node.get_our_node_id(),
+                       short_channel_id: chan_3.0.contents.short_channel_id,
+                       fee_msat: 0,
+                       cltv_expiry_delta: chan_2.1.contents.cltv_expiry_delta as u32
+               });
+               hops.push(RouteHop {
+                       pubkey: nodes[1].node.get_our_node_id(),
+                       short_channel_id: chan_2.0.contents.short_channel_id,
+                       fee_msat: 1000000,
+                       cltv_expiry_delta: TEST_FINAL_CLTV,
+               });
+               hops[1].fee_msat = chan_2.1.contents.fee_base_msat as u64 + chan_2.1.contents.fee_proportional_millionths as u64 * hops[2].fee_msat as u64 / 1000000;
+               hops[0].fee_msat = chan_3.1.contents.fee_base_msat as u64 + chan_3.1.contents.fee_proportional_millionths as u64 * hops[1].fee_msat as u64 / 1000000;
+               let payment_hash_2 = send_along_route(&nodes[1], Route { hops }, &vec!(&nodes[3], &nodes[2], &nodes[1])[..], 1000000).1;
+
+               // Claim the rebalances...
+               fail_payment(&nodes[1], &vec!(&nodes[3], &nodes[2], &nodes[1])[..], payment_hash_2);
+               claim_payment(&nodes[1], &vec!(&nodes[2], &nodes[3], &nodes[1])[..], payment_preimage_1);
+
+               // Add a duplicate new channel from 2 to 4
+               let chan_5 = create_announced_chan_between_nodes(&nodes, 1, 3);
+
+               // Send some payments across both channels
+               let payment_preimage_3 = route_payment(&nodes[0], &vec!(&nodes[1], &nodes[3])[..], 3000000).0;
+               let payment_preimage_4 = route_payment(&nodes[0], &vec!(&nodes[1], &nodes[3])[..], 3000000).0;
+               let payment_preimage_5 = route_payment(&nodes[0], &vec!(&nodes[1], &nodes[3])[..], 3000000).0;
+
+               route_over_limit(&nodes[0], &vec!(&nodes[1], &nodes[3])[..], 3000000);
+
+               //TODO: Test that routes work again here as we've been notified that the channel is full
+
+               claim_payment(&nodes[0], &vec!(&nodes[1], &nodes[3])[..], payment_preimage_3);
+               claim_payment(&nodes[0], &vec!(&nodes[1], &nodes[3])[..], payment_preimage_4);
+               claim_payment(&nodes[0], &vec!(&nodes[1], &nodes[3])[..], payment_preimage_5);
+
+               // Close down the channels...
+               close_channel(&nodes[0], &nodes[1], &chan_1.2, chan_1.3, true);
+               close_channel(&nodes[1], &nodes[2], &chan_2.2, chan_2.3, false);
+               close_channel(&nodes[2], &nodes[3], &chan_3.2, chan_3.3, true);
+               close_channel(&nodes[1], &nodes[3], &chan_4.2, chan_4.3, false);
+               close_channel(&nodes[1], &nodes[3], &chan_5.2, chan_5.3, false);
+
+               // Check that we processed all pending events
+               for node in nodes {
+                       assert_eq!(node.node.get_and_clear_pending_events().len(), 0);
+                       assert_eq!(node.chan_monitor.added_monitors.lock().unwrap().len(), 0);
+               }
+       }
+
+       #[derive(PartialEq)]
+       enum HTLCType { NONE, TIMEOUT, SUCCESS }
+       fn test_txn_broadcast(node: &Node, chan: &(msgs::ChannelUpdate, msgs::ChannelUpdate, Uint256, Transaction), commitment_tx: Option<Transaction>, has_htlc_tx: HTLCType) -> Vec<Transaction> {
+               let mut node_txn = node.tx_broadcaster.txn_broadcasted.lock().unwrap();
+               assert!(node_txn.len() >= if commitment_tx.is_some() { 0 } else { 1 } + if has_htlc_tx == HTLCType::NONE { 0 } else { 1 });
+
+               let mut res = Vec::with_capacity(2);
+
+               if let Some(explicit_tx) = commitment_tx {
+                       res.push(explicit_tx.clone());
+               } else {
+                       for tx in node_txn.iter() {
+                               if tx.input.len() == 1 && tx.input[0].prev_hash == chan.3.txid() {
+                                       let mut funding_tx_map = HashMap::new();
+                                       funding_tx_map.insert(chan.3.txid(), chan.3.clone());
+                                       tx.verify(&funding_tx_map).unwrap();
+                                       res.push(tx.clone());
+                               }
+                       }
+               }
+               assert_eq!(res.len(), 1);
+
+               if has_htlc_tx != HTLCType::NONE {
+                       for tx in node_txn.iter() {
+                               if tx.input.len() == 1 && tx.input[0].prev_hash == res[0].txid() {
+                                       let mut funding_tx_map = HashMap::new();
+                                       funding_tx_map.insert(res[0].txid(), res[0].clone());
+                                       tx.verify(&funding_tx_map).unwrap();
+                                       if has_htlc_tx == HTLCType::TIMEOUT {
+                                               assert!(tx.lock_time != 0);
+                                       } else {
+                                               assert!(tx.lock_time == 0);
+                                       }
+                                       res.push(tx.clone());
+                                       break;
+                               }
+                       }
+                       assert_eq!(res.len(), 2);
+               }
+               node_txn.clear();
+               res
+       }
+
+       fn check_preimage_claim(node: &Node, prev_txn: &Vec<Transaction>) -> Vec<Transaction> {
+               let mut node_txn = node.tx_broadcaster.txn_broadcasted.lock().unwrap();
+
+               assert!(node_txn.len() >= 1);
+               assert_eq!(node_txn[0].input.len(), 1);
+               let mut found_prev = false;
+
+               for tx in prev_txn {
+                       if node_txn[0].input[0].prev_hash == tx.txid() {
+                               let mut funding_tx_map = HashMap::new();
+                               funding_tx_map.insert(tx.txid(), tx.clone());
+                               node_txn[0].verify(&funding_tx_map).unwrap();
+
+                               assert!(node_txn[0].input[0].witness[2].len() > 106); // must spend an htlc output
+                               assert_eq!(tx.input.len(), 1); // must spend a commitment tx
+
+                               found_prev = true;
+                               break;
+                       }
+               }
+               assert!(found_prev);
+
+               let mut res = Vec::new();
+               mem::swap(&mut *node_txn, &mut res);
+               res
+       }
+
+       fn get_announce_close_broadcast_events(nodes: &Vec<Node>, a: usize, b: usize) {
+               let events_1 = nodes[a].node.get_and_clear_pending_events();
+               assert_eq!(events_1.len(), 1);
+               let as_update = match events_1[0] {
+                       Event::BroadcastChannelUpdate { ref msg } => {
+                               msg.clone()
+                       },
+                       _ => panic!("Unexpected event"),
                };
-               let node_3 = ChannelManager::new(node_id_3.clone(), 0, true, Network::Testnet, feeest_3.clone(), chan_monitor_3.clone(), chain_monitor_3.clone()).unwrap();
-               let router_3 = Router::new(PublicKey::from_secret_key(&secp_ctx, &node_id_3).unwrap());
-
-               let feeest_4 = Arc::new(test_utils::TestFeeEstimator { sat_per_vbyte: 1 });
-               let chain_monitor_4 = Arc::new(test_utils::TestWatchInterface::new());
-               let chan_monitor_4 = Arc::new(test_utils::TestChannelMonitor{});
-               let node_id_4 = {
-                       let mut key_slice = [0; 32];
-                       rng.fill_bytes(&mut key_slice);
-                       SecretKey::from_slice(&secp_ctx, &key_slice).unwrap()
+
+               let events_2 = nodes[b].node.get_and_clear_pending_events();
+               assert_eq!(events_2.len(), 1);
+               let bs_update = match events_2[0] {
+                       Event::BroadcastChannelUpdate { ref msg } => {
+                               msg.clone()
+                       },
+                       _ => panic!("Unexpected event"),
                };
-               let node_4 = ChannelManager::new(node_id_4.clone(), 0, true, Network::Testnet, feeest_4.clone(), chan_monitor_4.clone(), chain_monitor_4.clone()).unwrap();
-               let router_4 = Router::new(PublicKey::from_secret_key(&secp_ctx, &node_id_4).unwrap());
+
+               for node in nodes {
+                       node.router.handle_channel_update(&as_update).unwrap();
+                       node.router.handle_channel_update(&bs_update).unwrap();
+               }
+       }
+
+       #[test]
+       fn channel_monitor_network_test() {
+               // Simple test which builds a network of ChannelManagers, connects them to each other, and
+               // tests that ChannelMonitor is able to recover from various states.
+               let nodes = create_network(5);
 
                // Create some initial channels
-               let chan_announcement_1 = create_chan_between_nodes(&node_1, &chain_monitor_1, &node_2, &chain_monitor_2);
-               for router in vec!(&router_1, &router_2, &router_3, &router_4) {
-                       assert!(router.handle_channel_announcement(&chan_announcement_1.0).unwrap());
-                       router.handle_channel_update(&chan_announcement_1.1).unwrap();
-                       router.handle_channel_update(&chan_announcement_1.2).unwrap();
-               }
-               let chan_announcement_2 = create_chan_between_nodes(&node_2, &chain_monitor_2, &node_3, &chain_monitor_3);
-               for router in vec!(&router_1, &router_2, &router_3, &router_4) {
-                       assert!(router.handle_channel_announcement(&chan_announcement_2.0).unwrap());
-                       router.handle_channel_update(&chan_announcement_2.1).unwrap();
-                       router.handle_channel_update(&chan_announcement_2.2).unwrap();
-               }
-               let chan_announcement_3 = create_chan_between_nodes(&node_3, &chain_monitor_3, &node_4, &chain_monitor_4);
-               for router in vec!(&router_1, &router_2, &router_3, &router_4) {
-                       assert!(router.handle_channel_announcement(&chan_announcement_3.0).unwrap());
-                       router.handle_channel_update(&chan_announcement_3.1).unwrap();
-                       router.handle_channel_update(&chan_announcement_3.2).unwrap();
-               }
-
-               // Send some payments
-               send_payment(&node_1, &router_1, &vec!(&*node_2, &*node_3, &*node_4)[..]);
-               send_payment(&node_2, &router_2, &vec!(&*node_3, &*node_4)[..]);
-               send_payment(&node_4, &router_4, &vec!(&*node_3, &*node_2, &*node_1)[..]);
+               let chan_1 = create_announced_chan_between_nodes(&nodes, 0, 1);
+               let chan_2 = create_announced_chan_between_nodes(&nodes, 1, 2);
+               let chan_3 = create_announced_chan_between_nodes(&nodes, 2, 3);
+               let chan_4 = create_announced_chan_between_nodes(&nodes, 3, 4);
+
+               // Rebalance the network a bit by relaying one payment through all the channels...
+               send_payment(&nodes[0], &vec!(&nodes[1], &nodes[2], &nodes[3], &nodes[4])[..], 8000000);
+               send_payment(&nodes[0], &vec!(&nodes[1], &nodes[2], &nodes[3], &nodes[4])[..], 8000000);
+               send_payment(&nodes[0], &vec!(&nodes[1], &nodes[2], &nodes[3], &nodes[4])[..], 8000000);
+               send_payment(&nodes[0], &vec!(&nodes[1], &nodes[2], &nodes[3], &nodes[4])[..], 8000000);
+
+               // Simple case with no pending HTLCs:
+               nodes[1].node.peer_disconnected(&nodes[0].node.get_our_node_id(), true);
+               {
+                       let node_txn = test_txn_broadcast(&nodes[1], &chan_1, None, HTLCType::NONE);
+                       let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+                       nodes[0].chain_monitor.block_connected_checked(&header, 1, &[&node_txn[0]; 1], &[4; 1]);
+                       assert_eq!(nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap().len(), 0);
+               }
+               get_announce_close_broadcast_events(&nodes, 0, 1);
+               assert_eq!(nodes[0].node.list_channels().len(), 0);
+               assert_eq!(nodes[1].node.list_channels().len(), 1);
 
-               // Add a new channel that skips 3
-               let chan_announcement_4 = create_chan_between_nodes(&node_2, &chain_monitor_2, &node_4, &chain_monitor_4);
-               for router in vec!(&router_1, &router_2, &router_3, &router_4) {
-                       assert!(router.handle_channel_announcement(&chan_announcement_4.0).unwrap());
-                       router.handle_channel_update(&chan_announcement_4.1).unwrap();
-                       router.handle_channel_update(&chan_announcement_4.2).unwrap();
+               // One pending HTLC is discarded by the force-close:
+               let payment_preimage_1 = route_payment(&nodes[1], &vec!(&nodes[2], &nodes[3])[..], 3000000).0;
+
+               // Simple case of one pending HTLC to HTLC-Timeout
+               nodes[1].node.peer_disconnected(&nodes[2].node.get_our_node_id(), true);
+               {
+                       let node_txn = test_txn_broadcast(&nodes[1], &chan_2, None, HTLCType::TIMEOUT);
+                       let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+                       nodes[2].chain_monitor.block_connected_checked(&header, 1, &[&node_txn[0]; 1], &[4; 1]);
+                       assert_eq!(nodes[2].tx_broadcaster.txn_broadcasted.lock().unwrap().len(), 0);
+               }
+               get_announce_close_broadcast_events(&nodes, 1, 2);
+               assert_eq!(nodes[1].node.list_channels().len(), 0);
+               assert_eq!(nodes[2].node.list_channels().len(), 1);
+
+               macro_rules! claim_funds {
+                       ($node: expr, $prev_node: expr, $preimage: expr) => {
+                               {
+                                       assert!($node.node.claim_funds($preimage));
+                                       {
+                                               let mut added_monitors = $node.chan_monitor.added_monitors.lock().unwrap();
+                                               assert_eq!(added_monitors.len(), 1);
+                                               added_monitors.clear();
+                                       }
+
+                                       let events = $node.node.get_and_clear_pending_events();
+                                       assert_eq!(events.len(), 1);
+                                       match events[0] {
+                                               Event::SendFulfillHTLC { ref node_id, .. } => {
+                                                       assert_eq!(*node_id, $prev_node.node.get_our_node_id());
+                                               },
+                                               _ => panic!("Unexpected event"),
+                                       };
+                               }
+                       }
+               }
+
+               // nodes[3] gets the preimage, but nodes[2] already disconnected, resulting in a nodes[2]
+               // HTLC-Timeout and a nodes[3] claim against it (+ its own announces)
+               nodes[2].node.peer_disconnected(&nodes[3].node.get_our_node_id(), true);
+               {
+                       let node_txn = test_txn_broadcast(&nodes[2], &chan_3, None, HTLCType::TIMEOUT);
+
+                       // Claim the payment on nodes[3], giving it knowledge of the preimage
+                       claim_funds!(nodes[3], nodes[2], payment_preimage_1);
+
+                       let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+                       nodes[3].chain_monitor.block_connected_checked(&header, 1, &[&node_txn[0]; 1], &[4; 1]);
+
+                       check_preimage_claim(&nodes[3], &node_txn);
+               }
+               get_announce_close_broadcast_events(&nodes, 2, 3);
+               assert_eq!(nodes[2].node.list_channels().len(), 0);
+               assert_eq!(nodes[3].node.list_channels().len(), 1);
+
+               // One pending HTLC to time out:
+               let payment_preimage_2 = route_payment(&nodes[3], &vec!(&nodes[4])[..], 3000000).0;
+
+               {
+                       let mut header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+                       nodes[3].chain_monitor.block_connected_checked(&header, 1, &Vec::new()[..], &[0; 0]);
+                       for i in 2..TEST_FINAL_CLTV - 5 {
+                               header = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+                               nodes[3].chain_monitor.block_connected_checked(&header, i, &Vec::new()[..], &[0; 0]);
+                       }
+
+                       let node_txn = test_txn_broadcast(&nodes[3], &chan_4, None, HTLCType::TIMEOUT);
+
+                       // Claim the payment on nodes[3], giving it knowledge of the preimage
+                       claim_funds!(nodes[4], nodes[3], payment_preimage_2);
+
+                       header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+                       nodes[4].chain_monitor.block_connected_checked(&header, 1, &Vec::new()[..], &[0; 0]);
+                       for i in 2..TEST_FINAL_CLTV - 5 {
+                               header = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+                               nodes[4].chain_monitor.block_connected_checked(&header, i, &Vec::new()[..], &[0; 0]);
+                       }
+
+                       test_txn_broadcast(&nodes[4], &chan_4, None, HTLCType::SUCCESS);
+
+                       header = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+                       nodes[4].chain_monitor.block_connected_checked(&header, TEST_FINAL_CLTV - 5, &[&node_txn[0]; 1], &[4; 1]);
+
+                       check_preimage_claim(&nodes[4], &node_txn);
                }
+               get_announce_close_broadcast_events(&nodes, 3, 4);
+               assert_eq!(nodes[3].node.list_channels().len(), 0);
+               assert_eq!(nodes[4].node.list_channels().len(), 0);
+
+               // Create some new channels:
+               let chan_5 = create_announced_chan_between_nodes(&nodes, 0, 1);
+
+               // A pending HTLC which will be revoked:
+               let payment_preimage_3 = route_payment(&nodes[0], &vec!(&nodes[1])[..], 3000000).0;
+               // Get the will-be-revoked local txn from nodes[0]
+               let revoked_local_txn = nodes[0].node.channel_state.lock().unwrap().by_id.iter().next().unwrap().1.last_local_commitment_txn.clone();
+               // Revoke the old state
+               claim_payment(&nodes[0], &vec!(&nodes[1])[..], payment_preimage_3);
 
-               send_payment(&node_1, &router_1, &vec!(&*node_2, &*node_4)[..]);
+               {
+                       let mut header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+                       nodes[1].chain_monitor.block_connected_checked(&header, 1, &vec![&revoked_local_txn[0]; 1], &[4; 1]);
+                       {
+                               let mut node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
+                               assert_eq!(node_txn.len(), 1);
+                               assert_eq!(node_txn[0].input.len(), 1);
+
+                               let mut funding_tx_map = HashMap::new();
+                               funding_tx_map.insert(revoked_local_txn[0].txid(), revoked_local_txn[0].clone());
+                               node_txn[0].verify(&funding_tx_map).unwrap();
+                               node_txn.clear();
+                       }
+
+                       nodes[0].chain_monitor.block_connected_checked(&header, 1, &vec![&revoked_local_txn[0]; 1], &[4; 0]);
+                       let node_txn = test_txn_broadcast(&nodes[0], &chan_5, Some(revoked_local_txn[0].clone()), HTLCType::TIMEOUT);
+                       header = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+                       nodes[1].chain_monitor.block_connected_checked(&header, 1, &[&node_txn[1]; 1], &[4; 1]);
+
+                       //TODO: At this point nodes[1] should claim the revoked HTLC-Timeout output, but that's
+                       //not yet implemented in ChannelMonitor
+               }
+               get_announce_close_broadcast_events(&nodes, 0, 1);
+               assert_eq!(nodes[0].node.list_channels().len(), 0);
+               assert_eq!(nodes[1].node.list_channels().len(), 0);
 
                // Check that we processed all pending events
-               for node in vec!(&node_1, &node_2, &node_3, &node_4) {
-                       assert_eq!(node.get_and_clear_pending_events().len(), 0);
+               for node in nodes {
+                       assert_eq!(node.node.get_and_clear_pending_events().len(), 0);
+                       assert_eq!(node.chan_monitor.added_monitors.lock().unwrap().len(), 0);
                }
        }
 }