diff --git a/nursery_store.go b/nursery_store.go
index 32aaaaf9..5d694aba 100644
--- a/nursery_store.go
+++ b/nursery_store.go
@@ -114,11 +114,13 @@ type NurseryStore interface {
 	// transaction.
 	PreschoolToKinder(*kidOutput) error
 
-	// GraduateKinder accepts a slice of kidOutputs from the kindergarten
-	// bucket and marks them graduated. It also removes their corresponding
-	// entries from the height and channel indexes, pruning any intermediate
-	// buckets that become empty.
-	GraduateKinder(height uint32, kndrOutputs []kidOutput) error
+	// GraduateKinder atomically moves the kindergarten class at the
+	// provided height into the graduated status. This involves removing the
+	// kindergarten entries from both the height and channel indexes, and
+	// cleaning up the finalized kindergarten sweep txn. The height bucket
+	// will be opportunistically pruned from the height index as outputs are
+	// removed.
+	GraduateKinder(height uint32) error
 
 	// FetchPreschools returns a list of all outputs currently stored in the
 	// preschool bucket.
@@ -155,6 +157,9 @@ type NurseryStore interface {
 	// whose type should be inferred from the key's prefix.
 	ForChanOutputs(*wire.OutPoint, func([]byte, []byte) error) error
 
+	// ListChannels returns all channels the nursery is currently tracking.
+	ListChannels() ([]wire.OutPoint, error)
+
 	// IsMatureChannel determines the whether or not all of the outputs in a
 	// particular channel bucket have been marked as graduated.
 	IsMatureChannel(*wire.OutPoint) (bool, error)
@@ -344,6 +349,7 @@ func (ns *nurseryStore) CribToKinder(bby *babyOutput) error {
 			return err
 		}
 
+		// Remove the crib output's entry in the height index.
 		err = ns.removeOutputFromHeight(tx, bby.expiry, chanPoint,
 			pfxOutputKey)
 		if err != nil {
@@ -467,74 +473,88 @@ func (ns *nurseryStore) PreschoolToKinder(kid *kidOutput) error {
 	})
 }
 
-// GraduateKinder accepts a list of kidOutputs in the kindergarten bucket and
-// marks them as graduated. This method also removes their corresponding entries
-// from the height and channel indexes corresponding to their kindergarten
-// status. It also ensures that the finalized kindergarten sweep txn is removed
-// for this height.
-func (ns *nurseryStore) GraduateKinder(height uint32, kids []kidOutput) error {
-	if err := ns.db.Update(func(tx *bolt.Tx) error {
-		for _, kid := range kids {
-
-			outpoint := kid.OutPoint()
-			chanPoint := kid.OriginChanPoint()
-
-			// Construct the key under which the output is currently
-			// stored height and channel indexes.
-			pfxOutputKey, err := prefixOutputKey(kndrPrefix,
-				outpoint)
-			if err != nil {
-				return err
-			}
-
-			// Remove the grad output's entry in the height index.
-			err = ns.removeOutputFromHeight(tx, height, chanPoint,
-				pfxOutputKey)
-			if err != nil {
-				return err
-			}
-
-			chanBucket := ns.getChannelBucket(tx, chanPoint)
-			if chanBucket == nil {
-				return ErrContractNotFound
-			}
-
-			// Remove previous output with kindergarten prefix.
-			if err := chanBucket.Delete(pfxOutputKey); err != nil {
-				return err
-			}
-
-			// Convert kindergarten key to graduate key.
-			copy(pfxOutputKey, gradPrefix)
-
-			var gradBuffer bytes.Buffer
-			if err := kid.Encode(&gradBuffer); err != nil {
-				return err
-			}
-
-			// Insert serialized output into channel bucket using
-			// graduate-prefixed key.
-			err = chanBucket.Put(pfxOutputKey, gradBuffer.Bytes())
-			if err != nil {
-				return err
-			}
-		}
-
-		hghtBucket := ns.getHeightBucket(tx, height)
-		if hghtBucket == nil {
-			return nil
-		}
+// GraduateKinder atomically moves the kindergarten class at the provided height
+// into the graduated status. This involves removing the kindergarten entries
+// from both the height and channel indexes, and cleaning up the finalized
+// kindergarten sweep txn. The height bucket will be opportunistically pruned
+// from the height index as outputs are removed.
+func (ns *nurseryStore) GraduateKinder(height uint32) error {
+	return ns.db.Update(func(tx *bolt.Tx) error {
 
 		// Since all kindergarten outputs at a particular height are
 		// swept in a single txn, we can now safely delete the finalized
 		// txn, since it has already been broadcast and confirmed.
-		return hghtBucket.Delete(finalizedKndrTxnKey)
+		hghtBucket := ns.getHeightBucket(tx, height)
+		if hghtBucket == nil {
+			// Nothing to delete, bucket has already been removed.
+			return nil
+		}
 
-	}); err != nil {
-		return err
-	}
+		// Remove the finalized kindergarten txn, we do this before
+		// removing the outputs so that the extra entry doesn't prevent
+		// the height bucket from being opportunistically pruned below.
+		if err := hghtBucket.Delete(finalizedKndrTxnKey); err != nil {
+			return err
+		}
 
-	return nil
+		// For each kindergarten found output, delete its entry from the
+		// height and channel index, and create a new grad output in the
+		// channel index.
+		return ns.forEachHeightPrefix(tx, kndrPrefix, height,
+			func(v []byte) error {
+				var kid kidOutput
+				err := kid.Decode(bytes.NewReader(v))
+				if err != nil {
+					return err
+				}
+
+				outpoint := kid.OutPoint()
+				chanPoint := kid.OriginChanPoint()
+
+				// Construct the key under which the output is
+				// currently stored height and channel indexes.
+				pfxOutputKey, err := prefixOutputKey(kndrPrefix,
+					outpoint)
+				if err != nil {
+					return err
+				}
+
+				// Remove the grad output's entry in the height
+				// index.
+				err = ns.removeOutputFromHeight(tx, height,
+					chanPoint, pfxOutputKey)
+				if err != nil {
+					return err
+				}
+
+				chanBucket := ns.getChannelBucket(tx,
+					chanPoint)
+				if chanBucket == nil {
+					return ErrContractNotFound
+				}
+
+				// Remove previous output with kindergarten
+				// prefix.
+				err = chanBucket.Delete(pfxOutputKey)
+				if err != nil {
+					return err
+				}
+
+				// Convert kindergarten key to graduate key.
+				copy(pfxOutputKey, gradPrefix)
+
+				var gradBuffer bytes.Buffer
+				if err := kid.Encode(&gradBuffer); err != nil {
+					return err
+				}
+
+				// Insert serialized output into channel bucket
+				// using graduate-prefixed key.
+				return chanBucket.Put(pfxOutputKey,
+					gradBuffer.Bytes())
+			},
+		)
+	})
 }
 
 // FinalizeKinder accepts a block height as a parameter and purges its
@@ -555,7 +575,7 @@ func (ns *nurseryStore) FinalizeKinder(height uint32,
 // finalized.
 func (ns *nurseryStore) PurgeHeight(height uint32) error {
 	return ns.db.Update(func(tx *bolt.Tx) error {
-		if err := ns.deleteHeightBucket(tx, height); err != nil {
+		if err := ns.purgeHeightBucket(tx, height); err != nil {
 			return err
 		}
 
@@ -601,7 +621,8 @@ func (ns *nurseryStore) FetchClass(
 
 				return nil
 
-			}); err != nil {
+			},
+		); err != nil {
 			return err
 		}
 
@@ -677,17 +698,14 @@ func (ns *nurseryStore) FetchPreschools() ([]kidOutput, error) {
 			// the channel bucket to efficiently enumerate all the
 			// desired outputs.
 			c := chanBucket.Cursor()
-
-			// Seek and iterate over all outputs starting with the
-			// prefix "pscl".
-			pfxOutputKey, kidBytes := c.Seek(psclPrefix)
-			for bytes.HasPrefix(pfxOutputKey, psclPrefix) {
+			for k, v := c.Seek(psclPrefix); bytes.HasPrefix(
+				k, psclPrefix); k, v = c.Next() {
 
 				// Deserialize each output as a kidOutput, since
 				// this should have been the type that was
 				// serialized when it was written to disk.
 				var psclOutput kidOutput
-				psclReader := bytes.NewReader(kidBytes)
+				psclReader := bytes.NewReader(v)
 				err := psclOutput.Decode(psclReader)
 				if err != nil {
 					return err
@@ -696,8 +714,6 @@ func (ns *nurseryStore) FetchPreschools() ([]kidOutput, error) {
 				// Add the deserialized output to our list of
 				// preschool outputs.
 				kids = append(kids, psclOutput)
-
-				pfxOutputKey, kidBytes = c.Next()
 			}
 		}
 
@@ -724,9 +740,39 @@ func (ns *nurseryStore) ForChanOutputs(chanPoint *wire.OutPoint,
 	})
 }
 
-// errImmatureChannel signals that not all outputs in a channel bucket have
-// graduated.
-var errImmatureChannel = errors.New("channel has non-graduated outputs")
+// ListChannels returns all channels the nursery is currently tracking.
+func (ns *nurseryStore) ListChannels() ([]wire.OutPoint, error) {
+	var activeChannels []wire.OutPoint
+	if err := ns.db.View(func(tx *bolt.Tx) error {
+		// Retrieve the existing chain bucket for this nursery store.
+		chainBucket := tx.Bucket(ns.pfxChainKey)
+		if chainBucket == nil {
+			return nil
+		}
+
+		// Retrieve the existing channel index.
+		chanIndex := chainBucket.Bucket(channelIndexKey)
+		if chanIndex == nil {
+			return nil
+		}
+
+		return chanIndex.ForEach(func(chanBytes, _ []byte) error {
+			var chanPoint wire.OutPoint
+			err := readOutpoint(bytes.NewReader(chanBytes), &chanPoint)
+			if err != nil {
+				return err
+			}
+
+			activeChannels = append(activeChannels, chanPoint)
+
+			return nil
+		})
+	}); err != nil {
+		return nil, err
+	}
+
+	return activeChannels, nil
+}
 
 // IsMatureChannel determines the whether or not all of the outputs in a
 // particular channel bucket have been marked as graduated.
@@ -738,19 +784,24 @@ func (ns *nurseryStore) IsMatureChannel(chanPoint *wire.OutPoint) (bool, error)
 		return ns.forChanOutputs(tx, chanPoint,
 			func(pfxKey, _ []byte) error {
 				if !bytes.HasPrefix(pfxKey, gradPrefix) {
-					return errImmatureChannel
+					return ErrImmatureChannel
 				}
 				return nil
 			})
 
 	})
-	if err != nil && err != errImmatureChannel {
+	if err != nil && err != ErrImmatureChannel {
 		return false, err
 	}
 
 	return err == nil, nil
 }
 
+// ErrImmatureChannel signals a channel cannot be removed because not all of its
+// outputs have graduated.
+var ErrImmatureChannel = errors.New("cannot remove immature channel, " +
+	"still has ungraduated outputs")
+
 // RemoveChannel channel erases all entries from the channel bucket for the
 // provided channel point.
 // NOTE: The channel's entries in the height index are assumed to be removed.
@@ -778,7 +829,7 @@ func (ns *nurseryStore) RemoveChannel(chanPoint *wire.OutPoint) error {
 
 		err := ns.forChanOutputs(tx, chanPoint, func(k, v []byte) error {
 			if !bytes.HasPrefix(k, gradPrefix) {
-				return errors.New("expected grad output")
+				return ErrImmatureChannel
 			}
 
 			// Construct a kindergarten prefixed key, since this
@@ -1166,7 +1217,8 @@ func (ns *nurseryStore) forEachHeightPrefix(tx *bolt.Tx, prefix []byte,
 		// outputs.
 		chanBucket := chanIndex.Bucket(chanBytes)
 		if chanBucket == nil {
-			return fmt.Errorf("unable to retrieve channel bucket: '%x'", chanBytes)
+			return fmt.Errorf("unable to retrieve channel "+
+				"bucket: '%x'", chanBytes)
 		}
 
 		// Since all of the outputs of interest will start with the same
@@ -1174,16 +1226,13 @@ func (ns *nurseryStore) forEachHeightPrefix(tx *bolt.Tx, prefix []byte,
 		// contained in the height-channel bucket, efficiently
 		// enumerating the desired outputs.
 		c := hghtChanBucket.Cursor()
-
-		// Seek to and iterate over all entries starting with the given
-		// prefix.
-		pfxOutputKey, _ := c.Seek(prefix)
-		for bytes.HasPrefix(pfxOutputKey, prefix) {
+		for k, _ := c.Seek(prefix); bytes.HasPrefix(
+			k, prefix); k, _ = c.Next() {
 
 			// Use the prefix output key emitted from our scan to
 			// load the serialized babyOutput from the appropriate
 			// channel bucket.
-			outputBytes := chanBucket.Get(pfxOutputKey)
+			outputBytes := chanBucket.Get(k)
 			if outputBytes == nil {
 				return errors.New("unable to retrieve output")
 			}
@@ -1194,10 +1243,6 @@ func (ns *nurseryStore) forEachHeightPrefix(tx *bolt.Tx, prefix []byte,
 			if err := callback(outputBytes); err != nil {
 				return err
 			}
-
-			// Lastly, advance our prefix output key for the next
-			// iteration.
-			pfxOutputKey, _ = c.Next()
 		}
 	}
 
@@ -1230,12 +1275,13 @@ func (ns *nurseryStore) getLastFinalizedHeight(tx *bolt.Tx) (uint32, error) {
 
 	// Lookup the last finalized height in the top-level chain bucket.
 	heightBytes := chainBucket.Get(lastFinalizedHeightKey)
+	if heightBytes == nil {
+		// We have never finalized, return height 0.
+		return 0, nil
+	}
 
 	// If the resulting bytes are not sized like a uint32, then we have
 	// never finalized, so we return 0.
-	if len(heightBytes) != 4 {
-		return 0, nil
-	}
 
 	// Otherwise, parse the bytes and return the last finalized height.
 	return byteOrder.Uint32(heightBytes), nil
@@ -1328,16 +1374,14 @@ func (ns *nurseryStore) getLastPurgedHeight(tx *bolt.Tx) (uint32, error) {
 		return 0, nil
 	}
 
-	// Lookup the last finalized height in the top-level chain bucket.
+	// Lookup the last purged height in the top-level chain bucket.
 	heightBytes := chainBucket.Get(lastPurgedHeightKey)
-
-	// If the resulting bytes are not sized like a uint32, then we have
-	// never finalized, so we return 0.
-	if len(heightBytes) != 4 {
+	if heightBytes == nil {
+		// We have never purged before, return height 0.
 		return 0, nil
 	}
 
-	// Otherwise, parse the bytes and return the last finalized height.
+	// Otherwise, parse the bytes and return the last purged height.
 	return byteOrder.Uint32(heightBytes), nil
 }
 
@@ -1351,7 +1395,7 @@ func (ns *nurseryStore) putLastPurgedHeight(tx *bolt.Tx, height uint32) error {
 		return err
 	}
 
-	// Serialize the provided last-finalized height, and store it in the
+	// Serialize the provided last-purged height, and store it in the
 	// top-level chain bucket for this nursery store.
 	var lastHeightBytes [4]byte
 	byteOrder.PutUint32(lastHeightBytes[:], height)
@@ -1359,9 +1403,9 @@ func (ns *nurseryStore) putLastPurgedHeight(tx *bolt.Tx, height uint32) error {
 	return chainBucket.Put(lastPurgedHeightKey, lastHeightBytes[:])
 }
 
-// ErrBucketNotEmpty signals that an attempt to prune a particular
+// errBucketNotEmpty signals that an attempt to prune a particular
 // bucket failed because it still has active outputs.
-var ErrBucketNotEmpty = errors.New("bucket is not empty, cannot be pruned")
+var errBucketNotEmpty = errors.New("bucket is not empty, cannot be pruned")
 
 // removeOutputFromHeight will delete the given output from the specified
 // height-channel bucket, and attempt to prune the upstream directories if they
@@ -1396,16 +1440,16 @@ func (ns *nurseryStore) removeOutputFromHeight(tx *bolt.Tx, height uint32,
 	// Try to remove the channel-height bucket if it this was the last
 	// output in the bucket.
 	err := removeBucketIfEmpty(hghtBucket, chanBuffer.Bytes())
-	if err != nil && err != ErrBucketNotEmpty {
+	if err != nil && err != errBucketNotEmpty {
 		return err
-	} else if err == ErrBucketNotEmpty {
+	} else if err == errBucketNotEmpty {
 		return nil
 	}
 
 	// Attempt to prune the height bucket matching the kid output's
 	// confirmation height in case that was the last height-chan bucket.
 	pruned, err := ns.pruneHeight(tx, height)
-	if err != nil && err != ErrBucketNotEmpty {
+	if err != nil && err != errBucketNotEmpty {
 		return err
 	} else if err == nil && pruned {
 		utxnLog.Infof("Height bucket %d pruned", height)
@@ -1493,11 +1537,11 @@ func removeBucketIfExists(parent *bolt.Bucket, bktName []byte) error {
 	return parent.DeleteBucket(bktName)
 }
 
-// isBucketEmpty returns ErrBucketNotEmpty if the bucket has a non-zero number
+// isBucketEmpty returns errBucketNotEmpty if the bucket has a non-zero number
 // of children.
 func isBucketEmpty(parent *bolt.Bucket) error {
 	return parent.ForEach(func(_, _ []byte) error {
-		return ErrBucketNotEmpty
+		return errBucketNotEmpty
 	})
 }