diff --git a/discovery/service.go b/discovery/service.go
index 35ca2fdd..d71a237c 100644
--- a/discovery/service.go
+++ b/discovery/service.go
@@ -5,6 +5,8 @@ import (
 	"sync/atomic"
 	"time"
 
+	"bytes"
+
 	"encoding/hex"
 
 	"github.com/go-errors/errors"
@@ -16,12 +18,23 @@ import (
 	"github.com/roasbeef/btcutil"
 )
 
+// waitingProofKey is the proof key which uniquely identifies the
+// announcement signature message. The goal of this key is distinguish the
+// local and remote proof for the same channel id.
+// TODO(andrew.shvv) move to the channeldb package after waiting proof map
+// becomes persistent.
+type waitingProofKey struct {
+	chanID   uint64
+	isRemote bool
+}
+
 // networkMsg couples a routing related wire message with the peer that
 // originally sent it.
 type networkMsg struct {
 	msg      lnwire.Message
 	isRemote bool
 	peer     *btcec.PublicKey
+	err      chan error
 }
 
 // syncRequest represents a request from an outside subsystem to the wallet to
@@ -51,10 +64,19 @@ type Config struct {
 	// indicates that the target peer should be excluded from the broadcast.
 	Broadcast func(exclude *btcec.PublicKey, msg ...lnwire.Message) error
 
-	// SendMessages is a function which allows the service to send a set of
+	// SendToPeer is a function which allows the service to send a set of
 	// messages to a particular peer identified by the target public
 	// key.
-	SendMessages func(target *btcec.PublicKey, msg ...lnwire.Message) error
+	SendToPeer func(target *btcec.PublicKey, msg ...lnwire.Message) error
+
+	// ProofMatureDelta the number of confirmations which is needed
+	// before exchange the channel announcement proofs.
+	ProofMatureDelta uint32
+
+	// TrickleDelay the period of trickle timer which flushing to the
+	// network the pending batch of new announcements we've received since
+	// the last trickle tick.
+	TrickleDelay time.Duration
 }
 
 // New create new discovery service structure.
@@ -79,6 +101,7 @@ func New(cfg Config) (*Discovery, error) {
 		quit:                   make(chan bool),
 		syncRequests:           make(chan *syncRequest),
 		prematureAnnouncements: make(map[uint32][]*networkMsg),
+		waitingProofs:          make(map[waitingProofKey]*lnwire.AnnounceSignatures),
 		fakeSig:                fakeSig,
 	}, nil
 }
@@ -104,16 +127,23 @@ type Discovery struct {
 	// the main chain are sent over.
 	newBlocks <-chan *chainntnfs.BlockEpoch
 
-	// prematureAnnouncements maps a blockheight to a set of announcements
-	// which are "premature" from our PoV. An message is premature if
-	// it claims to be anchored in a block which is beyond the current main
-	// chain tip as we know it. Premature network messages will be processed
-	// once the chain tip as we know it extends to/past the premature
-	// height.
+	// prematureAnnouncements maps a block height to a set of network
+	// messages which are "premature" from our PoV. An message is premature
+	// if it claims to be anchored in a block which is beyond the current
+	// main chain tip as we know it. Premature network messages will be
+	// processed once the chain tip as we know it extends to/past the
+	// premature height.
 	//
 	// TODO(roasbeef): limit premature networkMsgs to N
 	prematureAnnouncements map[uint32][]*networkMsg
 
+	// waitingProofs is the map of proof announcement messages which were
+	// processed and waiting for opposite local or remote proof to be
+	// received in order to construct full proof, validate it and
+	// announce the channel.
+	// TODO(andrew.shvv) make this map persistent.
+	waitingProofs map[waitingProofKey]*lnwire.AnnounceSignatures
+
 	// networkMsgs is a channel that carries new network broadcasted
 	// message from outside the discovery service to be processed by the
 	// networkHandler.
@@ -137,20 +167,22 @@ type Discovery struct {
 // Remote channel announcements should contain the announcement proof and be
 // fully validated.
 func (d *Discovery) ProcessRemoteAnnouncement(msg lnwire.Message,
-	src *btcec.PublicKey) error {
+	src *btcec.PublicKey) chan error {
 
-	aMsg := &networkMsg{
+	nMsg := &networkMsg{
 		msg:      msg,
 		isRemote: true,
 		peer:     src,
+		err:      make(chan error, 1),
 	}
 
 	select {
-	case d.networkMsgs <- aMsg:
-		return nil
+	case d.networkMsgs <- nMsg:
 	case <-d.quit:
-		return errors.New("discovery has been shutted down")
+		nMsg.err <- errors.New("discovery has shut down")
 	}
+
+	return nMsg.err
 }
 
 // ProcessLocalAnnouncement sends a new remote announcement message along with
@@ -160,20 +192,22 @@ func (d *Discovery) ProcessRemoteAnnouncement(msg lnwire.Message,
 // fully validated. The channels proofs will be included farther if nodes agreed
 // to announce this channel to the rest of the network.
 func (d *Discovery) ProcessLocalAnnouncement(msg lnwire.Message,
-	src *btcec.PublicKey) error {
+	src *btcec.PublicKey) chan error {
 
-	aMsg := &networkMsg{
+	nMsg := &networkMsg{
 		msg:      msg,
 		isRemote: false,
 		peer:     src,
+		err:      make(chan error, 1),
 	}
 
 	select {
-	case d.networkMsgs <- aMsg:
-		return nil
+	case d.networkMsgs <- nMsg:
 	case <-d.quit:
-		return errors.New("discovery has been shutted down")
+		nMsg.err <- errors.New("discovery has shut down")
 	}
+
+	return nMsg.err
 }
 
 // SynchronizeNode sends a message to the service indicating it should
@@ -246,7 +280,7 @@ func (d *Discovery) networkHandler() {
 	defer retransmitTimer.Stop()
 
 	// TODO(roasbeef): parametrize the above
-	trickleTimer := time.NewTicker(time.Millisecond * 300)
+	trickleTimer := time.NewTicker(d.cfg.TrickleDelay)
 	defer trickleTimer.Stop()
 
 	for {
@@ -254,18 +288,18 @@ func (d *Discovery) networkHandler() {
 		case announcement := <-d.networkMsgs:
 			// Process the network announcement to determine if
 			// this is either a new announcement from our PoV or an
-			// updates to a prior vertex/edge we previously
-			// accepted.
-			accepted := d.processNetworkAnnouncement(announcement)
+			// edges to a prior vertex/edge we previously
+			// proceeded.
+			emittedAnnouncements := d.processNetworkAnnouncement(announcement)
 
-			// If the updates was accepted, then add it to our next
-			// announcement batch to be broadcast once the trickle
-			// timer ticks gain.
-			if accepted {
+			// If the announcement was accepted, then add the
+			// emitted announcements to our announce batch to be
+			// broadcast once the trickle timer ticks gain.
+			if emittedAnnouncements != nil {
 				// TODO(roasbeef): exclude peer that sent
 				announcementBatch = append(
 					announcementBatch,
-					announcement.msg,
+					emittedAnnouncements...,
 				)
 			}
 
@@ -294,12 +328,11 @@ func (d *Discovery) networkHandler() {
 			}
 
 			for _, ann := range prematureAnns {
-				accepted := d.processNetworkAnnouncement(ann)
-
-				if accepted {
+				emittedAnnouncements := d.processNetworkAnnouncement(ann)
+				if emittedAnnouncements != nil {
 					announcementBatch = append(
 						announcementBatch,
-						ann.msg,
+						emittedAnnouncements...,
 					)
 				}
 			}
@@ -309,7 +342,7 @@ func (d *Discovery) networkHandler() {
 		// flush to the network the pending batch of new announcements
 		// we've received since the last trickle tick.
 		case <-trickleTimer.C:
-			// If the current announcement batch is nil, then we
+			// If the current announcements batch is nil, then we
 			// have no further work here.
 			if len(announcementBatch) == 0 {
 				continue
@@ -322,7 +355,8 @@ func (d *Discovery) networkHandler() {
 			// them to all our immediately connected peers.
 			err := d.cfg.Broadcast(nil, announcementBatch...)
 			if err != nil {
-				log.Errorf("unable to send batch announcement: %v", err)
+				log.Errorf("unable to send batch "+
+					"announcements: %v", err)
 				continue
 			}
 
@@ -343,7 +377,7 @@ func (d *Discovery) networkHandler() {
 			err := d.cfg.Router.ForAllOutgoingChannels(
 				func(p *channeldb.ChannelEdgePolicy) error {
 					c := &lnwire.ChannelUpdateAnnouncement{
-						Signature:                 d.fakeSig,
+						Signature:                 p.Signature,
 						ShortChannelID:            lnwire.NewShortChanIDFromInt(p.ChannelID),
 						Timestamp:                 uint32(p.LastUpdate.Unix()),
 						Flags:                     p.Flags,
@@ -381,8 +415,6 @@ func (d *Discovery) networkHandler() {
 		// through the (subjectively) new information on their own.
 		case syncReq := <-d.syncRequests:
 			nodePub := syncReq.node.SerializeCompressed()
-			log.Infof("Synchronizing channel graph with %x", nodePub)
-
 			if err := d.synchronize(syncReq); err != nil {
 				log.Errorf("unable to sync graph state with %x: %v",
 					nodePub, err)
@@ -397,23 +429,22 @@ func (d *Discovery) networkHandler() {
 }
 
 // processNetworkAnnouncement processes a new network relate authenticated
-// channel or node announcement. If the updates didn't affect the internal state
-// of the draft due to either being out of date, invalid, or redundant, then
-// false is returned. Otherwise, true is returned indicating that the caller
-// may want to batch this request to be broadcast to immediate peers during the
-// next announcement epoch.
-func (d *Discovery) processNetworkAnnouncement(aMsg *networkMsg) bool {
-	isPremature := func(chanID *lnwire.ShortChannelID) bool {
-		return chanID.BlockHeight > d.bestHeight
+// channel or node announcement or announcements proofs. If the announcement
+// didn't affect the internal state due to either being out of date, invalid,
+// or redundant, then nil is returned. Otherwise, the set of announcements
+// will be returned which should be broadcasted to the rest of the network.
+func (d *Discovery) processNetworkAnnouncement(nMsg *networkMsg) []lnwire.Message {
+	var announcements []lnwire.Message
+	isPremature := func(chanID lnwire.ShortChannelID, delta uint32) bool {
+		return chanID.BlockHeight+delta > d.bestHeight
 	}
 
-	switch msg := aMsg.msg.(type) {
-
+	switch msg := nMsg.msg.(type) {
 	// A new node announcement has arrived which either presents a new
 	// node, or a node updating previously advertised information.
 	case *lnwire.NodeAnnouncement:
-		if aMsg.isRemote {
-			// TODO(andrew.shvv) Add node validation
+		if nMsg.isRemote {
+			// TODO(andrew.shvv) add validation
 		}
 
 		node := &channeldb.LightningNode{
@@ -426,10 +457,25 @@ func (d *Discovery) processNetworkAnnouncement(aMsg *networkMsg) bool {
 		}
 
 		if err := d.cfg.Router.AddNode(node); err != nil {
-			log.Errorf("unable to add node: %v", err)
-			return false
+			e := errors.Errorf("unable to add node: %v", err)
+			if routing.IsError(err,
+				routing.ErrOutdated,
+				routing.ErrIgnored) {
+				log.Info(e)
+			} else {
+				log.Error(e)
+			}
+			nMsg.err <- e
+			return nil
 		}
 
+		// Node announcement was successfully proceeded and know it
+		// might be broadcasted to other connected nodes.
+		announcements = append(announcements, msg)
+
+		nMsg.err <- nil
+		return announcements
+
 	// A new channel announcement has arrived, this indicates the
 	// *creation* of a new channel within the network. This only advertises
 	// the existence of a channel and not yet the routing policies in
@@ -438,7 +484,7 @@ func (d *Discovery) processNetworkAnnouncement(aMsg *networkMsg) bool {
 		// If the advertised inclusionary block is beyond our knowledge
 		// of the chain tip, then we'll put the announcement in limbo
 		// to be fully verified once we advance forward in the chain.
-		if isPremature(&msg.ShortChannelID) {
+		if isPremature(msg.ShortChannelID, 0) {
 			blockHeight := msg.ShortChannelID.BlockHeight
 			log.Infof("Announcement for chan_id=(%v), is "+
 				"premature: advertises height %v, only height "+
@@ -447,21 +493,21 @@ func (d *Discovery) processNetworkAnnouncement(aMsg *networkMsg) bool {
 
 			d.prematureAnnouncements[blockHeight] = append(
 				d.prematureAnnouncements[blockHeight],
-				aMsg,
+				nMsg,
 			)
-			return false
+			return nil
 		}
 
 		var proof *channeldb.ChannelAuthProof
-		if aMsg.isRemote {
-			// TODO(andrew.shvv) Add channel validation
-		}
+		if nMsg.isRemote {
+			// TODO(andrew.shvv) Add validation
 
-		proof = &channeldb.ChannelAuthProof{
-			NodeSig1:    msg.NodeSig1,
-			NodeSig2:    msg.NodeSig2,
-			BitcoinSig1: msg.BitcoinSig1,
-			BitcoinSig2: msg.BitcoinSig2,
+			proof = &channeldb.ChannelAuthProof{
+				NodeSig1:    msg.NodeSig1,
+				NodeSig2:    msg.NodeSig2,
+				BitcoinSig1: msg.BitcoinSig1,
+				BitcoinSig2: msg.BitcoinSig2,
+			}
 		}
 
 		edge := &channeldb.ChannelEdgeInfo{
@@ -474,45 +520,69 @@ func (d *Discovery) processNetworkAnnouncement(aMsg *networkMsg) bool {
 		}
 
 		if err := d.cfg.Router.AddEdge(edge); err != nil {
-			if !routing.IsError(err, routing.ErrOutdated) {
-				log.Errorf("unable to add edge: %v", err)
+			e := errors.Errorf("unable to add edge: %v", err)
+			if routing.IsError(err,
+				routing.ErrOutdated,
+				routing.ErrIgnored) {
+				log.Info(e)
 			} else {
-				log.Info("Unable to add edge: %v", err)
+				log.Error(e)
 			}
-
-			return false
+			nMsg.err <- e
+			return nil
 		}
 
-	// A new authenticated channel updates has arrived, this indicates
+		// Channel announcement was successfully proceeded and know it
+		// might be broadcasted to other connected nodes if it was
+		// announcement with proof (remote).
+		if proof != nil {
+			announcements = append(announcements, msg)
+		}
+
+		nMsg.err <- nil
+		return announcements
+
+	// A new authenticated channel edges has arrived, this indicates
 	// that the directional information for an already known channel has
 	// been updated.
 	case *lnwire.ChannelUpdateAnnouncement:
-		chanID := msg.ShortChannelID.ToUint64()
+		blockHeight := msg.ShortChannelID.BlockHeight
+		shortChanID := msg.ShortChannelID.ToUint64()
 
 		// If the advertised inclusionary block is beyond our knowledge
 		// of the chain tip, then we'll put the announcement in limbo
 		// to be fully verified once we advance forward in the chain.
-		if isPremature(&msg.ShortChannelID) {
-			blockHeight := msg.ShortChannelID.BlockHeight
-			log.Infof("Update announcement for chan_id=(%v), is "+
-				"premature: advertises height %v, only height "+
-				"%v is known", chanID, blockHeight,
-				d.bestHeight)
+		if isPremature(msg.ShortChannelID, 0) {
+			log.Infof("Update announcement for "+
+				"shortChanID=(%v), is premature: advertises "+
+				"height %v, only height %v is known",
+				shortChanID, blockHeight, d.bestHeight)
 
 			d.prematureAnnouncements[blockHeight] = append(
 				d.prematureAnnouncements[blockHeight],
-				aMsg,
+				nMsg,
 			)
-			return false
+			return nil
 		}
 
-		if aMsg.isRemote {
-			// TODO(andrew.shvv) Add update channel validation
+		// Get the node pub key as far as we don't have it in
+		// channel update announcement message and verify
+		// message signature.
+		chanInfo, _, _, err := d.cfg.Router.GetChannelByID(msg.ShortChannelID)
+		if err != nil {
+			err := errors.Errorf("unable to validate "+
+				"channel update shortChanID=%v: %v",
+				shortChanID, err)
+			nMsg.err <- err
+			return nil
 		}
 
+		// TODO(andrew.shvv) Add validation
+
 		// TODO(roasbeef): should be msat here
 		update := &channeldb.ChannelEdgePolicy{
-			ChannelID:                 chanID,
+			Signature:                 msg.Signature,
+			ChannelID:                 shortChanID,
 			LastUpdate:                time.Unix(int64(msg.Timestamp), 0),
 			Flags:                     msg.Flags,
 			TimeLockDelta:             msg.TimeLockDelta,
@@ -522,12 +592,200 @@ func (d *Discovery) processNetworkAnnouncement(aMsg *networkMsg) bool {
 		}
 
 		if err := d.cfg.Router.UpdateEdge(update); err != nil {
-			log.Errorf("unable to update edge: %v", err)
-			return false
-		}
-	}
+			e := errors.Errorf("unable to update edge: %v", err)
+			if routing.IsError(err,
+				routing.ErrOutdated,
+				routing.ErrIgnored) {
+				log.Info(e)
+			} else {
+				log.Error(e)
+			}
 
-	return true
+			nMsg.err <- e
+			return nil
+		}
+
+		// Channel update announcement was successfully proceeded and
+		// know it might be broadcasted to other connected nodes.
+		// We should announce the edge to rest of the network only
+		// if channel has the authentication proof.
+		if chanInfo.AuthProof != nil {
+			announcements = append(announcements, msg)
+		}
+
+		nMsg.err <- nil
+		return announcements
+
+	// New signature announcement received which indicates willingness
+	// of the parties (to exchange the channel signatures / announce newly
+	// created channel).
+	case *lnwire.AnnounceSignatures:
+		needBlockHeight := msg.ShortChannelID.BlockHeight + d.cfg.ProofMatureDelta
+		shortChanID := msg.ShortChannelID.ToUint64()
+		prefix := "local"
+		if nMsg.isRemote {
+			prefix = "remote"
+		}
+
+		// By the specification proof should be sent after some number of
+		// confirmations after channel was registered in bitcoin
+		// blockchain. So we should check that proof is premature and
+		// if not send it to the be proceeded again. This allows us to
+		// be tolerant to other clients if this constraint was changed.
+		if isPremature(msg.ShortChannelID, d.cfg.ProofMatureDelta) {
+			d.prematureAnnouncements[needBlockHeight] = append(
+				d.prematureAnnouncements[needBlockHeight],
+				nMsg,
+			)
+			log.Infof("Premature proof annoucement, "+
+				"current block height lower than needed: %v <"+
+				" %v, add announcement to reprocessing batch",
+				d.bestHeight, needBlockHeight)
+			return nil
+		}
+
+		// Check that we have channel with such channel id in out
+		// lightning network topology.
+		chanInfo, e1, e2, err := d.cfg.Router.GetChannelByID(msg.ShortChannelID)
+		if err != nil {
+			err := errors.Errorf("unable to process channel "+
+				"%v proof with shortChanID=%v: %v", prefix,
+				shortChanID, err)
+			nMsg.err <- err
+			return nil
+		}
+
+		isFirstNode := bytes.Equal(nMsg.peer.SerializeCompressed(),
+			chanInfo.NodeKey1.SerializeCompressed())
+		isSecondNode := bytes.Equal(nMsg.peer.SerializeCompressed(),
+			chanInfo.NodeKey2.SerializeCompressed())
+
+		// Check that channel that was retrieved belongs to the peer
+		// which sent the proof announcement, otherwise the proof for
+		// might be rewritten by the any lightning network node.
+		if !(isFirstNode || isSecondNode) {
+			err := errors.Errorf("channel that was received not "+
+				"belongs to the peer which sent the proof, "+
+				"shortChanID=%v", shortChanID)
+			log.Error(err)
+			nMsg.err <- err
+			return nil
+		}
+
+		// Check that we received the opposite proof, if so, than we
+		// should construct the full proof, and create the channel
+		// announcement. If we didn't receive the opposite half of the
+		// proof than we should store it this one, and wait for opposite
+		// to be received.
+		oppositeKey := newProofKey(chanInfo.ChannelID, !nMsg.isRemote)
+		oppositeProof, ok := d.waitingProofs[oppositeKey]
+		if !ok {
+			key := newProofKey(chanInfo.ChannelID, nMsg.isRemote)
+			d.waitingProofs[key] = msg
+
+			// If proof was send from funding manager than we
+			// should send the announce signature message to
+			// remote side.
+			if !nMsg.isRemote {
+				// Check that first node of the channel info
+				// corresponds to us.
+				var remotePeer *btcec.PublicKey
+				if isFirstNode {
+					remotePeer = chanInfo.NodeKey2
+				} else {
+					remotePeer = chanInfo.NodeKey1
+				}
+
+				err := d.cfg.SendToPeer(remotePeer, msg)
+				if err != nil {
+					log.Errorf("unable to send "+
+						"announcement message to "+
+						"peer: %x",
+						remotePeer.SerializeCompressed())
+				}
+
+				log.Infof("Send channel announcement proof "+
+					"for shortChanID=%v to remote peer: "+
+					"%x", shortChanID, remotePeer.SerializeCompressed())
+			}
+
+			log.Infof("Incoming %v proof announcement for "+
+				"shortChanID=%v have been proceeded and waiting for opposite proof",
+				prefix, shortChanID)
+
+			nMsg.err <- nil
+			return nil
+		}
+
+		var dbProof channeldb.ChannelAuthProof
+		if isFirstNode {
+			dbProof.NodeSig1 = msg.NodeSignature
+			dbProof.NodeSig2 = oppositeProof.NodeSignature
+			dbProof.BitcoinSig1 = msg.BitcoinSignature
+			dbProof.BitcoinSig2 = oppositeProof.BitcoinSignature
+		} else {
+			dbProof.NodeSig1 = oppositeProof.NodeSignature
+			dbProof.NodeSig2 = msg.NodeSignature
+			dbProof.BitcoinSig1 = oppositeProof.BitcoinSignature
+			dbProof.BitcoinSig2 = msg.BitcoinSignature
+		}
+
+		chanAnn, e1Ann, e2Ann := createChanAnnouncement(&dbProof, chanInfo, e1, e2)
+
+		// TODO(andrew.shvv) Add validation
+
+		// If the channel was returned by the router it means that
+		// existence of funding point and inclusion of nodes bitcoin
+		// keys in it already checked by the router. On this stage we
+		// should check that node keys are corresponds to the bitcoin
+		// keys by validating the signatures of announcement.
+		// If proof is valid than we should populate the channel
+		// edge with it, so we can announce it on peer connect.
+		err = d.cfg.Router.AddProof(msg.ShortChannelID, &dbProof)
+		if err != nil {
+			err := errors.Errorf("unable add proof to the "+
+				"channel chanID=%v: %v", msg.ChannelID, err)
+			log.Error(err)
+			nMsg.err <- err
+			return nil
+		}
+
+		// Proof was successfully created and now can announce the
+		// channel to the remain network.
+		log.Infof("Incoming %v proof announcement for shortChanID=%v"+
+			" have been proceeded, adding channel announcement in"+
+			" the broadcasting batch", prefix, shortChanID)
+
+		announcements = append(announcements, chanAnn)
+		if e1Ann != nil {
+			announcements = append(announcements, e1Ann)
+		}
+		if e2Ann != nil {
+			announcements = append(announcements, e2Ann)
+		}
+
+		if !nMsg.isRemote {
+			var remotePeer *btcec.PublicKey
+			if isFirstNode {
+				remotePeer = chanInfo.NodeKey2
+			} else {
+				remotePeer = chanInfo.NodeKey1
+			}
+			err = d.cfg.SendToPeer(remotePeer, msg)
+			if err != nil {
+				log.Errorf("unable to send announcement "+
+					"message to peer: %x",
+					remotePeer.SerializeCompressed())
+			}
+		}
+
+		nMsg.err <- nil
+		return announcements
+
+	default:
+		nMsg.err <- errors.New("wrong type of the announcement")
+		return nil
+	}
 }
 
 // synchronize attempts to synchronize the target node in the syncReq to
@@ -555,7 +813,7 @@ func (d *Discovery) synchronize(syncReq *syncRequest) error {
 		}
 
 		ann := &lnwire.NodeAnnouncement{
-			Signature: d.fakeSig,
+			Signature: node.AuthSig,
 			Timestamp: uint32(node.LastUpdate.Unix()),
 			Addresses: node.Addresses,
 			NodeID:    node.PubKey,
@@ -573,71 +831,39 @@ func (d *Discovery) synchronize(syncReq *syncRequest) error {
 
 	// With the vertexes gathered, we'll no retrieve the initial
 	// announcement, as well as the latest channel update announcement for
-	// both of the directed edges that make up the channel.
+	// both of the directed infos that make up the channel.
 	var numEdges uint32
 	if err := d.cfg.Router.ForEachChannel(func(chanInfo *channeldb.ChannelEdgeInfo,
 		e1, e2 *channeldb.ChannelEdgePolicy) error {
-
-		chanID := lnwire.NewShortChanIDFromInt(chanInfo.ChannelID)
-
 		// First, using the parameters of the channel, along with the
 		// channel authentication proof, we'll create re-create the
 		// original authenticated channel announcement.
-		// TODO(andrew.shvv) skip if proof is nil
-		authProof := chanInfo.AuthProof
-		chanAnn := &lnwire.ChannelAnnouncement{
-			NodeSig1:       authProof.NodeSig1,
-			NodeSig2:       authProof.NodeSig2,
-			ShortChannelID: chanID,
-			BitcoinSig1:    authProof.BitcoinSig1,
-			BitcoinSig2:    authProof.BitcoinSig2,
-			NodeID1:        chanInfo.NodeKey1,
-			NodeID2:        chanInfo.NodeKey2,
-			BitcoinKey1:    chanInfo.BitcoinKey1,
-			BitcoinKey2:    chanInfo.BitcoinKey2,
-		}
-		announceMessages = append(announceMessages, chanAnn)
+		if chanInfo.AuthProof != nil {
+			chanAnn, e1Ann, e2Ann := createChanAnnouncement(
+				chanInfo.AuthProof, chanInfo, e1, e2)
 
-		// Since it's up to a node's policy as to whether they
-		// advertise the edge in dire direction, we don't create an
-		// advertisement if the edge is nil.
-		if e1 != nil {
-			announceMessages = append(announceMessages, &lnwire.ChannelUpdateAnnouncement{
-				Signature:                 d.fakeSig,
-				ShortChannelID:            chanID,
-				Timestamp:                 uint32(e1.LastUpdate.Unix()),
-				Flags:                     0,
-				TimeLockDelta:             e1.TimeLockDelta,
-				HtlcMinimumMsat:           uint32(e1.MinHTLC),
-				FeeBaseMsat:               uint32(e1.FeeBaseMSat),
-				FeeProportionalMillionths: uint32(e1.FeeProportionalMillionths),
-			})
-		}
-		if e2 != nil {
-			announceMessages = append(announceMessages, &lnwire.ChannelUpdateAnnouncement{
-				Signature:                 d.fakeSig,
-				ShortChannelID:            chanID,
-				Timestamp:                 uint32(e2.LastUpdate.Unix()),
-				Flags:                     1,
-				TimeLockDelta:             e2.TimeLockDelta,
-				HtlcMinimumMsat:           uint32(e2.MinHTLC),
-				FeeBaseMsat:               uint32(e2.FeeBaseMSat),
-				FeeProportionalMillionths: uint32(e2.FeeProportionalMillionths),
-			})
+			announceMessages = append(announceMessages, chanAnn)
+			if e1Ann != nil {
+				announceMessages = append(announceMessages, e1Ann)
+			}
+			if e2Ann != nil {
+				announceMessages = append(announceMessages, e2Ann)
+			}
+
+			numEdges++
 		}
 
-		numEdges++
 		return nil
 	}); err != nil && err != channeldb.ErrGraphNoEdgesFound {
-		log.Errorf("unable to sync edges w/ peer: %v", err)
+		log.Errorf("unable to sync infos with peer: %v", err)
 		return err
 	}
 
 	log.Infof("Syncing channel graph state with %x, sending %v "+
-		"nodes and %v edges", targetNode.SerializeCompressed(),
+		"nodes and %v infos", targetNode.SerializeCompressed(),
 		numNodes, numEdges)
 
 	// With all the announcement messages gathered, send them all in a
 	// single batch to the target peer.
-	return d.cfg.SendMessages(targetNode, announceMessages...)
+	return d.cfg.SendToPeer(targetNode, announceMessages...)
 }
diff --git a/discovery/service_test.go b/discovery/service_test.go
index a0b0885d..1de27f91 100644
--- a/discovery/service_test.go
+++ b/discovery/service_test.go
@@ -13,6 +13,7 @@ import (
 
 	"time"
 
+	"github.com/go-errors/errors"
 	"github.com/lightningnetwork/lnd/chainntnfs"
 	"github.com/lightningnetwork/lnd/channeldb"
 	"github.com/lightningnetwork/lnd/lnwire"
@@ -33,18 +34,39 @@ var (
 	}
 	_, _ = testSig.R.SetString("63724406601629180062774974542967536251589935445068131219452686511677818569431", 10)
 	_, _ = testSig.S.SetString("18801056069249825825291287104931333862866033135609736119018462340006816851118", 10)
+
+	inputStr = "147caa76786596590baa4e98f5d9f48b86c7765e489f7a6ff3360fe5c674360b"
+	sha, _   = chainhash.NewHashFromStr(inputStr)
+	outpoint = wire.NewOutPoint(sha, 0)
+
+	bitcoinKeyPriv1, _ = btcec.NewPrivateKey(btcec.S256())
+	bitcoinKeyPub1     = bitcoinKeyPriv1.PubKey()
+
+	nodeKeyPriv1, _ = btcec.NewPrivateKey(btcec.S256())
+	nodeKeyPub1     = nodeKeyPriv1.PubKey()
+
+	bitcoinKeyPriv2, _ = btcec.NewPrivateKey(btcec.S256())
+	bitcoinKeyPub2     = bitcoinKeyPriv2.PubKey()
+
+	nodeKeyPriv2, _ = btcec.NewPrivateKey(btcec.S256())
+	nodeKeyPub2     = nodeKeyPriv2.PubKey()
+
+	trickleDelay     = time.Millisecond * 300
+	proofMatureDelta uint32
 )
 
 type mockGraphSource struct {
 	nodes      []*channeldb.LightningNode
-	edges      []*channeldb.ChannelEdgeInfo
-	updates    []*channeldb.ChannelEdgePolicy
+	infos      map[uint64]*channeldb.ChannelEdgeInfo
+	edges      map[uint64][]*channeldb.ChannelEdgePolicy
 	bestHeight uint32
 }
 
 func newMockRouter(height uint32) *mockGraphSource {
 	return &mockGraphSource{
 		bestHeight: height,
+		infos:      make(map[uint64]*channeldb.ChannelEdgeInfo),
+		edges:      make(map[uint64][]*channeldb.ChannelEdgePolicy),
 	}
 }
 
@@ -55,13 +77,19 @@ func (r *mockGraphSource) AddNode(node *channeldb.LightningNode) error {
 	return nil
 }
 
-func (r *mockGraphSource) AddEdge(edge *channeldb.ChannelEdgeInfo) error {
-	r.edges = append(r.edges, edge)
+func (r *mockGraphSource) AddEdge(info *channeldb.ChannelEdgeInfo) error {
+	if _, ok := r.infos[info.ChannelID]; ok {
+		return errors.New("info already exist")
+	}
+	r.infos[info.ChannelID] = info
 	return nil
 }
 
-func (r *mockGraphSource) UpdateEdge(policy *channeldb.ChannelEdgePolicy) error {
-	r.updates = append(r.updates, policy)
+func (r *mockGraphSource) UpdateEdge(edge *channeldb.ChannelEdgePolicy) error {
+	r.edges[edge.ChannelID] = append(
+		r.edges[edge.ChannelID],
+		edge,
+	)
 	return nil
 }
 
@@ -91,6 +119,28 @@ func (r *mockGraphSource) ForEachChannel(func(chanInfo *channeldb.ChannelEdgeInf
 	return nil
 }
 
+func (r *mockGraphSource) GetChannelByID(chanID lnwire.ShortChannelID) (
+	*channeldb.ChannelEdgeInfo,
+	*channeldb.ChannelEdgePolicy,
+	*channeldb.ChannelEdgePolicy, error) {
+
+	chanInfo, ok := r.infos[chanID.ToUint64()]
+	if !ok {
+		return nil, nil, nil, errors.New("can't find channel info")
+	}
+
+	edges := r.edges[chanID.ToUint64()]
+	if len(edges) == 0 {
+		return chanInfo, nil, nil, nil
+	}
+
+	if len(edges) == 1 {
+		return chanInfo, edges[0], nil, nil
+	}
+
+	return chanInfo, edges[0], edges[1], nil
+}
+
 type mockNotifier struct {
 	clientCounter uint32
 	epochClients  map[uint32]chan *chainntnfs.BlockEpoch
@@ -149,31 +199,87 @@ func (m *mockNotifier) Stop() error {
 	return nil
 }
 
-func createNodeAnnouncement() (*lnwire.NodeAnnouncement,
+type annBatch struct {
+	nodeAnn1       *lnwire.NodeAnnouncement
+	nodeAnn2       *lnwire.NodeAnnouncement
+	localChanAnn   *lnwire.ChannelAnnouncement
+	remoteChanAnn  *lnwire.ChannelAnnouncement
+	chanUpdAnn     *lnwire.ChannelUpdateAnnouncement
+	localProofAnn  *lnwire.AnnounceSignatures
+	remoteProofAnn *lnwire.AnnounceSignatures
+}
+
+func createAnnouncements(blockHeight uint32) (*annBatch, error) {
+	var err error
+	var batch annBatch
+
+	batch.nodeAnn1, err = createNodeAnnouncement(nodeKeyPriv1)
+	if err != nil {
+		return nil, err
+	}
+
+	batch.nodeAnn2, err = createNodeAnnouncement(nodeKeyPriv2)
+	if err != nil {
+		return nil, err
+	}
+
+	batch.remoteChanAnn, err = createRemoteChannelAnnouncement(blockHeight)
+	if err != nil {
+		return nil, err
+	}
+
+	batch.localProofAnn = &lnwire.AnnounceSignatures{
+		NodeSignature:    batch.remoteChanAnn.NodeSig1,
+		BitcoinSignature: batch.remoteChanAnn.BitcoinSig1,
+	}
+
+	batch.remoteProofAnn = &lnwire.AnnounceSignatures{
+		NodeSignature:    batch.remoteChanAnn.NodeSig2,
+		BitcoinSignature: batch.remoteChanAnn.BitcoinSig2,
+	}
+
+	batch.localChanAnn, err = createRemoteChannelAnnouncement(blockHeight)
+	if err != nil {
+		return nil, err
+	}
+	batch.localChanAnn.BitcoinSig1 = nil
+	batch.localChanAnn.BitcoinSig2 = nil
+	batch.localChanAnn.NodeSig1 = nil
+	batch.localChanAnn.NodeSig2 = nil
+
+	batch.chanUpdAnn, err = createUpdateAnnouncement(blockHeight)
+	if err != nil {
+		return nil, err
+	}
+
+	return &batch, nil
+
+}
+
+func createNodeAnnouncement(priv *btcec.PrivateKey) (*lnwire.NodeAnnouncement,
 	error) {
-	priv, err := btcec.NewPrivateKey(btcec.S256())
+
+	alias, err := lnwire.NewAlias("kek" + string(priv.Serialize()))
 	if err != nil {
 		return nil, err
 	}
 
-	pub := priv.PubKey().SerializeCompressed()
-
-	alias, err := lnwire.NewAlias("kek" + string(pub[:]))
-	if err != nil {
-		return nil, err
-	}
-
-	return &lnwire.NodeAnnouncement{
+	a := &lnwire.NodeAnnouncement{
+		Signature: testSig,
 		Timestamp: uint32(prand.Int31()),
 		Addresses: testAddrs,
 		NodeID:    priv.PubKey(),
 		Alias:     alias,
 		Features:  testFeatures,
-	}, nil
+	}
+
+	return a, nil
 }
 
-func createUpdateAnnouncement(blockHeight uint32) *lnwire.ChannelUpdateAnnouncement {
-	return &lnwire.ChannelUpdateAnnouncement{
+func createUpdateAnnouncement(blockHeight uint32) (*lnwire.ChannelUpdateAnnouncement,
+	error) {
+
+	a := &lnwire.ChannelUpdateAnnouncement{
 		Signature: testSig,
 		ShortChannelID: lnwire.ShortChannelID{
 			BlockHeight: blockHeight,
@@ -184,26 +290,37 @@ func createUpdateAnnouncement(blockHeight uint32) *lnwire.ChannelUpdateAnnouncem
 		FeeBaseMsat:               uint32(prand.Int31()),
 		FeeProportionalMillionths: uint32(prand.Int31()),
 	}
+
+	return a, nil
 }
 
-func createChannelAnnouncement(blockHeight uint32) *lnwire.ChannelAnnouncement {
-	// Our fake channel will be "confirmed" at height 101.
-	chanID := lnwire.ShortChannelID{
-		BlockHeight: blockHeight,
-		TxIndex:     0,
-		TxPosition:  0,
+func createRemoteChannelAnnouncement(blockHeight uint32) (*lnwire.ChannelAnnouncement,
+	error) {
+
+	a := &lnwire.ChannelAnnouncement{
+		ShortChannelID: lnwire.ShortChannelID{
+			BlockHeight: blockHeight,
+			TxIndex:     0,
+			TxPosition:  0,
+		},
+		NodeID1:     nodeKeyPub1,
+		NodeID2:     nodeKeyPub2,
+		BitcoinKey1: bitcoinKeyPub1,
+		BitcoinKey2: bitcoinKeyPub2,
+
+		NodeSig1:    testSig,
+		NodeSig2:    testSig,
+		BitcoinSig1: testSig,
+		BitcoinSig2: testSig,
 	}
 
-	return &lnwire.ChannelAnnouncement{
-		ShortChannelID: chanID,
-	}
+	return a, nil
 }
 
 type testCtx struct {
-	discovery *Discovery
-	router    *mockGraphSource
-	notifier  *mockNotifier
-
+	discovery          *Discovery
+	router             *mockGraphSource
+	notifier           *mockNotifier
 	broadcastedMessage chan lnwire.Message
 }
 
@@ -215,7 +332,7 @@ func createTestCtx(startHeight uint32) (*testCtx, func(), error) {
 	notifier := newMockNotifier()
 	router := newMockRouter(startHeight)
 
-	broadcastedMessage := make(chan lnwire.Message)
+	broadcastedMessage := make(chan lnwire.Message, 10)
 	discovery, err := New(Config{
 		Notifier: notifier,
 		Broadcast: func(_ *btcec.PublicKey, msgs ...lnwire.Message) error {
@@ -224,8 +341,12 @@ func createTestCtx(startHeight uint32) (*testCtx, func(), error) {
 			}
 			return nil
 		},
-		SendMessages: nil,
-		Router:       router,
+		SendToPeer: func(target *btcec.PublicKey, msg ...lnwire.Message) error {
+			return nil
+		},
+		Router:           router,
+		TrickleDelay:     trickleDelay,
+		ProofMatureDelta: proofMatureDelta,
 	})
 	if err != nil {
 		return nil, nil, fmt.Errorf("unable to create router %v", err)
@@ -255,21 +376,23 @@ func TestProcessAnnouncement(t *testing.T) {
 	}
 	defer cleanup()
 
-	priv, err := btcec.NewPrivateKey(btcec.S256())
-	if err != nil {
-		t.Fatalf("can't create node pub key: %v", err)
-	}
-	nodePub := priv.PubKey()
-
-	na, err := createNodeAnnouncement()
+	// Create node valid, signed announcement, process it with with
+	// discovery service, check that valid announcement have been
+	// propagated farther into the lightning network, and check that we
+	// added new node into router.
+	na, err := createNodeAnnouncement(nodeKeyPriv1)
 	if err != nil {
 		t.Fatalf("can't create node announcement: %v", err)
 	}
-	ctx.discovery.ProcessRemoteAnnouncement(na, nodePub)
+
+	err = <-ctx.discovery.ProcessRemoteAnnouncement(na, na.NodeID)
+	if err != nil {
+		t.Fatalf("can't process remote announcement: %v", err)
+	}
 
 	select {
 	case <-ctx.broadcastedMessage:
-	case <-time.After(time.Second):
+	case <-time.After(2 * trickleDelay):
 		t.Fatal("announcememt wasn't proceeded")
 	}
 
@@ -277,32 +400,54 @@ func TestProcessAnnouncement(t *testing.T) {
 		t.Fatalf("node wasn't added to router: %v", err)
 	}
 
-	ca := createChannelAnnouncement(0)
-	ctx.discovery.ProcessRemoteAnnouncement(ca, nodePub)
+	// Pretending that we receive the valid channel announcement from
+	// remote side, and check that we broadcasted it to the our network,
+	// and added channel info in the router.
+	ca, err := createRemoteChannelAnnouncement(0)
+	if err != nil {
+		t.Fatalf("can't create channel announcement: %v", err)
+	}
+
+	err = <-ctx.discovery.ProcessRemoteAnnouncement(ca, na.NodeID)
+	if err != nil {
+		t.Fatalf("can't process remote announcement: %v", err)
+	}
+
 	select {
 	case <-ctx.broadcastedMessage:
-	case <-time.After(time.Second):
+	case <-time.After(2 * trickleDelay):
+		t.Fatal("announcememt wasn't proceeded")
+	}
+
+	if len(ctx.router.infos) != 1 {
+		t.Fatalf("edge wasn't added to router: %v", err)
+	}
+
+	// Pretending that we received valid channel policy update from remote
+	// side, and check that we broadcasted it to the other network, and
+	// added updates to the router.
+	ua, err := createUpdateAnnouncement(0)
+	if err != nil {
+		t.Fatalf("can't create update announcement: %v", err)
+	}
+
+	err = <-ctx.discovery.ProcessRemoteAnnouncement(ua, na.NodeID)
+	if err != nil {
+		t.Fatalf("can't process remote announcement: %v", err)
+	}
+
+	select {
+	case <-ctx.broadcastedMessage:
+	case <-time.After(2 * trickleDelay):
 		t.Fatal("announcememt wasn't proceeded")
 	}
 
 	if len(ctx.router.edges) != 1 {
-		t.Fatalf("edge wasn't added to router: %v", err)
-	}
-
-	ua := createUpdateAnnouncement(0)
-	ctx.discovery.ProcessRemoteAnnouncement(ua, nodePub)
-	select {
-	case <-ctx.broadcastedMessage:
-	case <-time.After(time.Second):
-		t.Fatal("announcememt wasn't proceeded")
-	}
-
-	if len(ctx.router.updates) != 1 {
 		t.Fatalf("edge update wasn't added to router: %v", err)
 	}
 }
 
-// TestPrematureAnnouncement checks that premature networkMsgs are
+// TestPrematureAnnouncement checks that premature announcements are
 // not propagated to the router subsystem until block with according
 // block height received.
 func TestPrematureAnnouncement(t *testing.T) {
@@ -312,62 +457,150 @@ func TestPrematureAnnouncement(t *testing.T) {
 	}
 	defer cleanup()
 
-	priv, err := btcec.NewPrivateKey(btcec.S256())
+	na, err := createNodeAnnouncement(nodeKeyPriv1)
 	if err != nil {
-		t.Fatalf("can't create node pub key: %v", err)
+		t.Fatalf("can't create node announcement: %v", err)
+	}
+
+	// Pretending that we receive the valid channel announcement from
+	// remote side, but block height of this announcement is greater than
+	// highest know to us, for that reason it should be added to the
+	// repeat/premature batch.
+	ca, err := createRemoteChannelAnnouncement(1)
+	if err != nil {
+		t.Fatalf("can't create channel announcement: %v", err)
 	}
-	nodePub := priv.PubKey()
 
-	ca := createChannelAnnouncement(1)
-	ctx.discovery.ProcessRemoteAnnouncement(ca, nodePub)
 	select {
-	case <-ctx.broadcastedMessage:
+	case <-ctx.discovery.ProcessRemoteAnnouncement(ca, na.NodeID):
+		t.Fatal("announcement was proceeded")
+	case <-time.After(100 * time.Millisecond):
+	}
+
+	if len(ctx.router.infos) != 0 {
+		t.Fatal("edge was added to router")
+	}
+
+	// Pretending that we receive the valid channel update announcement from
+	// remote side, but block height of this announcement is greater than
+	// highest know to us, for that reason it should be added to the
+	// repeat/premature batch.
+	ua, err := createUpdateAnnouncement(1)
+	if err != nil {
+		t.Fatalf("can't create update announcement: %v", err)
+	}
+
+	select {
+	case <-ctx.discovery.ProcessRemoteAnnouncement(ua, na.NodeID):
 		t.Fatal("announcement was proceeded")
 	case <-time.After(100 * time.Millisecond):
 	}
 
 	if len(ctx.router.edges) != 0 {
-		t.Fatal("edge was added to router")
-	}
-
-	ua := createUpdateAnnouncement(1)
-	ctx.discovery.ProcessRemoteAnnouncement(ua, nodePub)
-	select {
-	case <-ctx.broadcastedMessage:
-		t.Fatal("announcement was proceeded")
-	case <-time.After(100 * time.Millisecond):
-	}
-
-	if len(ctx.router.updates) != 0 {
 		t.Fatal("edge update was added to router")
 	}
 
+	// Generate new block and waiting the previously added announcements
+	// to be proceeded.
 	newBlock := &wire.MsgBlock{}
 	ctx.notifier.notifyBlock(newBlock.Header.BlockHash(), 1)
 
 	select {
 	case <-ctx.broadcastedMessage:
-		if err != nil {
-			t.Fatalf("announcememt was proceeded with err: %v", err)
-		}
-	case <-time.After(time.Second):
-		t.Fatal("announcememt wasn't proceeded")
+	case <-time.After(2 * trickleDelay):
+		t.Fatal("announcememt wasn't broadcasted")
 	}
 
-	if len(ctx.router.edges) != 1 {
+	if len(ctx.router.infos) != 1 {
 		t.Fatalf("edge was't added to router: %v", err)
 	}
 
 	select {
 	case <-ctx.broadcastedMessage:
-		if err != nil {
-			t.Fatalf("announcememt was proceeded with err: %v", err)
-		}
-	case <-time.After(time.Second):
-		t.Fatal("announcememt wasn't proceeded")
+	case <-time.After(2 * trickleDelay):
+		t.Fatal("announcememt wasn't broadcasted")
 	}
 
-	if len(ctx.router.updates) != 1 {
+	if len(ctx.router.edges) != 1 {
 		t.Fatalf("edge update wasn't added to router: %v", err)
 	}
 }
+
+// TestSignatureAnnouncement....
+func TestSignatureAnnouncement(t *testing.T) {
+	ctx, cleanup, err := createTestCtx(proofMatureDelta)
+	if err != nil {
+		t.Fatalf("can't create context: %v", err)
+	}
+	defer cleanup()
+
+	batch, err := createAnnouncements(0)
+	if err != nil {
+		t.Fatalf("can't generate announcements: %v", err)
+	}
+
+	localKey := batch.nodeAnn1.NodeID
+	remoteKey := batch.nodeAnn2.NodeID
+
+	// Recreate lightning network topology. Initialize router with
+	// channel between two nodes.
+	err = <-ctx.discovery.ProcessLocalAnnouncement(batch.localChanAnn, localKey)
+	if err != nil {
+		t.Fatalf("unable to process :%v", err)
+	}
+	select {
+	case <-ctx.broadcastedMessage:
+		t.Fatal("channel announcement was broadcasted")
+	case <-time.After(2 * trickleDelay):
+	}
+
+	err = <-ctx.discovery.ProcessLocalAnnouncement(batch.chanUpdAnn, localKey)
+	if err != nil {
+		t.Fatalf("unable to process :%v", err)
+	}
+	select {
+	case <-ctx.broadcastedMessage:
+		t.Fatal("channel update announcement was broadcasted")
+	case <-time.After(2 * trickleDelay):
+	}
+
+	err = <-ctx.discovery.ProcessRemoteAnnouncement(batch.chanUpdAnn, remoteKey)
+	if err != nil {
+		t.Fatalf("unable to process :%v", err)
+	}
+	select {
+	case <-ctx.broadcastedMessage:
+		t.Fatal("channel update announcement was broadcasted")
+	case <-time.After(2 * trickleDelay):
+	}
+
+	// Pretending that we receive local channel announcement from funding
+	// manager, thereby kick off the announcement exchange process.
+	err = <-ctx.discovery.ProcessLocalAnnouncement(batch.localProofAnn, localKey)
+	if err != nil {
+		t.Fatalf("unable to process :%v", err)
+	}
+
+	select {
+	case <-ctx.broadcastedMessage:
+		t.Fatal("announcements were broadcasted")
+	case <-time.After(2 * trickleDelay):
+	}
+
+	if len(ctx.discovery.waitingProofs) != 1 {
+		t.Fatal("local proof annoucement should be stored")
+	}
+
+	err = <-ctx.discovery.ProcessRemoteAnnouncement(batch.remoteProofAnn, remoteKey)
+	if err != nil {
+		t.Fatalf("unable to process :%v", err)
+	}
+
+	for i := 0; i < 3; i++ {
+		select {
+		case <-ctx.broadcastedMessage:
+		case <-time.After(time.Second):
+			t.Fatal("announcement wasn't broadcasted")
+		}
+	}
+}
diff --git a/discovery/utils.go b/discovery/utils.go
new file mode 100644
index 00000000..53efc99b
--- /dev/null
+++ b/discovery/utils.go
@@ -0,0 +1,93 @@
+package discovery
+
+import (
+	"encoding/binary"
+
+	"github.com/lightningnetwork/lnd/channeldb"
+	"github.com/lightningnetwork/lnd/lnwire"
+)
+
+// newProofKey constructs new announcement signature message key.
+func newProofKey(chanID uint64, isRemote bool) waitingProofKey {
+	return waitingProofKey{
+		chanID:   chanID,
+		isRemote: isRemote,
+	}
+}
+
+// ToBytes represents the key in the byte format.
+func (k waitingProofKey) ToBytes() []byte {
+	var key [10]byte
+
+	var b uint8
+	if k.isRemote {
+		b = 0
+	} else {
+		b = 1
+	}
+
+	binary.BigEndian.PutUint64(key[:], k.chanID)
+	key[9] = b
+
+	return key[:]
+}
+
+// createChanAnnouncement helper function which creates the channel announcement
+// by the given channeldb objects.
+func createChanAnnouncement(chanProof *channeldb.ChannelAuthProof,
+	chanInfo *channeldb.ChannelEdgeInfo,
+	e1, e2 *channeldb.ChannelEdgePolicy) (
+	*lnwire.ChannelAnnouncement,
+	*lnwire.ChannelUpdateAnnouncement,
+	*lnwire.ChannelUpdateAnnouncement) {
+	// First, using the parameters of the channel, along with the
+	// channel authentication chanProof, we'll create re-create the
+	// original authenticated channel announcement.
+	chanID := lnwire.NewShortChanIDFromInt(chanInfo.ChannelID)
+	chanAnn := &lnwire.ChannelAnnouncement{
+		NodeSig1:       chanProof.NodeSig1,
+		NodeSig2:       chanProof.NodeSig2,
+		ShortChannelID: chanID,
+		BitcoinSig1:    chanProof.BitcoinSig1,
+		BitcoinSig2:    chanProof.BitcoinSig2,
+		NodeID1:        chanInfo.NodeKey1,
+		NodeID2:        chanInfo.NodeKey2,
+		BitcoinKey1:    chanInfo.BitcoinKey1,
+		BitcoinKey2:    chanInfo.BitcoinKey2,
+	}
+
+	// We'll unconditionally queue the channel's existence chanProof as
+	// it will need to be processed before either of the channel
+	// update networkMsgs.
+
+	// Since it's up to a node's policy as to whether they
+	// advertise the edge in dire direction, we don't create an
+	// advertisement if the edge is nil.
+	var edge1Ann, edge2Ann *lnwire.ChannelUpdateAnnouncement
+	if e1 != nil {
+		edge1Ann = &lnwire.ChannelUpdateAnnouncement{
+			Signature:                 e1.Signature,
+			ShortChannelID:            chanID,
+			Timestamp:                 uint32(e1.LastUpdate.Unix()),
+			Flags:                     0,
+			TimeLockDelta:             e1.TimeLockDelta,
+			HtlcMinimumMsat:           uint32(e1.MinHTLC),
+			FeeBaseMsat:               uint32(e1.FeeBaseMSat),
+			FeeProportionalMillionths: uint32(e1.FeeProportionalMillionths),
+		}
+	}
+	if e2 != nil {
+		edge2Ann = &lnwire.ChannelUpdateAnnouncement{
+			Signature:                 e2.Signature,
+			ShortChannelID:            chanID,
+			Timestamp:                 uint32(e2.LastUpdate.Unix()),
+			Flags:                     1,
+			TimeLockDelta:             e2.TimeLockDelta,
+			HtlcMinimumMsat:           uint32(e2.MinHTLC),
+			FeeBaseMsat:               uint32(e2.FeeBaseMSat),
+			FeeProportionalMillionths: uint32(e2.FeeProportionalMillionths),
+		}
+	}
+
+	return chanAnn, edge1Ann, edge2Ann
+}
diff --git a/fundingmanager.go b/fundingmanager.go
index 81343dca..af431342 100644
--- a/fundingmanager.go
+++ b/fundingmanager.go
@@ -2,7 +2,6 @@ package main
 
 import (
 	"bytes"
-	"encoding/hex"
 	"sync"
 	"sync/atomic"
 	"time"
@@ -141,9 +140,18 @@ type fundingConfig struct {
 	// so that the channel creation process can be completed.
 	Notifier chainntnfs.ChainNotifier
 
+	// SignNodeKey is used to generate signature for node public key with
+	// funding keys.
+	SignNodeKey func(nodeKey, fundingKey *btcec.PublicKey) (*btcec.Signature, error)
+
+	// SignAnnouncement is used to generate the signatures for channel
+	// update, and node announcements, and also to generate the proof for
+	// the channel announcement.
+	SignAnnouncement func(msg lnwire.Message) (*btcec.Signature, error)
+
 	// SendToDiscovery is used by the FundingManager to announce newly created
 	// channels to the rest of the Lightning Network.
-	SendToDiscovery func(msg lnwire.Message)
+	SendToDiscovery func(msg lnwire.Message) error
 
 	// SendToPeer allows the FundingManager to send messages to the peer
 	// node during the multiple steps involved in the creation of the
@@ -202,8 +210,6 @@ type fundingManager struct {
 	barrierMtx      sync.RWMutex
 	newChanBarriers map[wire.OutPoint]chan struct{}
 
-	fakeProof *channelProof
-
 	quit chan struct{}
 	wg   sync.WaitGroup
 }
@@ -211,22 +217,8 @@ type fundingManager struct {
 // newFundingManager creates and initializes a new instance of the
 // fundingManager.
 func newFundingManager(cfg fundingConfig) (*fundingManager, error) {
-	// TODO(roasbeef): remove once we actually sign the funding_locked
-	// stuffs
-	s := "30450221008ce2bc69281ce27da07e6683571319d18e949ddfa2965fb6caa" +
-		"1bf0314f882d70220299105481d63e0f4bc2a88121167221b6700d72a0e" +
-		"ad154c03be696a292d24ae"
-	fakeSigHex, _ := hex.DecodeString(s)
-	fakeSig, _ := btcec.ParseSignature(fakeSigHex, btcec.S256())
-
 	return &fundingManager{
-		cfg: &cfg,
-
-		fakeProof: &channelProof{
-			nodeSig:    fakeSig,
-			bitcoinSig: fakeSig,
-		},
-
+		cfg:                &cfg,
 		activeReservations: make(map[serializedPubKey]pendingChannels),
 		newChanBarriers:    make(map[wire.OutPoint]chan struct{}),
 		fundingMsgs:        make(chan interface{}, msgBufferSize),
@@ -998,8 +990,9 @@ func (f *fundingManager) handleFundingLocked(fmsg *fundingLockedMsg) {
 	// Register the new link with the L3 routing manager so this
 	// new channel can be utilized during path
 	// finding.
-	go f.announceChannel(f.cfg.IDKey, fmsg.peerAddress.IdentityKey, channel,
-		fmsg.msg.ChannelID, f.fakeProof, f.fakeProof)
+	go f.announceChannel(f.cfg.IDKey, fmsg.peerAddress.IdentityKey,
+		channel.LocalFundingKey, channel.RemoteFundingKey,
+		fmsg.msg.ChannelID, fundingPoint)
 }
 
 // channelProof is one half of the proof necessary to create an authenticated
@@ -1013,8 +1006,9 @@ type channelProof struct {
 // chanAnnouncement encapsulates the two authenticated announcements that we
 // send out to the network after a new channel has been created locally.
 type chanAnnouncement struct {
-	chanAnn    *lnwire.ChannelAnnouncement
-	edgeUpdate *lnwire.ChannelUpdateAnnouncement
+	chanAnn       *lnwire.ChannelAnnouncement
+	chanUpdateAnn *lnwire.ChannelUpdateAnnouncement
+	chanProof     *lnwire.AnnounceSignatures
 }
 
 // newChanAnnouncement creates the authenticated channel announcement messages
@@ -1024,11 +1018,12 @@ type chanAnnouncement struct {
 // identity pub keys of both parties to the channel, and the second segment is
 // authenticated only by us and contains our directional routing policy for the
 // channel.
-func newChanAnnouncement(localIdentity, remotePub *btcec.PublicKey,
-	channel *lnwallet.LightningChannel, chanID lnwire.ShortChannelID,
-	localProof, remoteProof *channelProof) *chanAnnouncement {
+func (f *fundingManager) newChanAnnouncement(localPubKey, remotePubKey *btcec.PublicKey,
+	localFundingKey, remoteFundingKey *btcec.PublicKey, chanID lnwire.ShortChannelID,
+	chanPoint wire.OutPoint) (*chanAnnouncement, error) {
+	var err error
 
-	// The unconditional section of the announcement is the ChannelID
+	// The unconditional section of the announcement is the ShortChannelID
 	// itself which compactly encodes the location of the funding output
 	// within the blockchain.
 	chanAnn := &lnwire.ChannelAnnouncement{
@@ -1045,30 +1040,22 @@ func newChanAnnouncement(localIdentity, remotePub *btcec.PublicKey,
 	// nodes indicates which of the nodes is "first". If our serialized
 	// identity key is lower than theirs then we're the "first" node and
 	// second otherwise.
-	selfBytes := localIdentity.SerializeCompressed()
-	remoteBytes := remotePub.SerializeCompressed()
+	selfBytes := localPubKey.SerializeCompressed()
+	remoteBytes := remotePubKey.SerializeCompressed()
 	if bytes.Compare(selfBytes, remoteBytes) == -1 {
-		chanAnn.NodeID1 = localIdentity
-		chanAnn.NodeID2 = remotePub
-		chanAnn.NodeSig1 = localProof.nodeSig
-		chanAnn.NodeSig2 = remoteProof.nodeSig
-		chanAnn.BitcoinSig1 = localProof.nodeSig
-		chanAnn.BitcoinSig2 = remoteProof.nodeSig
-		chanAnn.BitcoinKey1 = channel.LocalFundingKey
-		chanAnn.BitcoinKey2 = channel.RemoteFundingKey
+		chanAnn.NodeID1 = localPubKey
+		chanAnn.NodeID2 = remotePubKey
+		chanAnn.BitcoinKey1 = localFundingKey
+		chanAnn.BitcoinKey2 = remoteFundingKey
 
 		// If we're the first node then update the chanFlags to
 		// indicate the "direction" of the update.
 		chanFlags = 0
 	} else {
-		chanAnn.NodeID1 = remotePub
-		chanAnn.NodeID2 = localIdentity
-		chanAnn.NodeSig1 = remoteProof.nodeSig
-		chanAnn.NodeSig2 = localProof.nodeSig
-		chanAnn.BitcoinSig1 = remoteProof.nodeSig
-		chanAnn.BitcoinSig2 = localProof.nodeSig
-		chanAnn.BitcoinKey1 = channel.RemoteFundingKey
-		chanAnn.BitcoinKey2 = channel.LocalFundingKey
+		chanAnn.NodeID1 = remotePubKey
+		chanAnn.NodeID2 = localPubKey
+		chanAnn.BitcoinKey1 = remoteFundingKey
+		chanAnn.BitcoinKey2 = localFundingKey
 
 		// If we're the second node then update the chanFlags to
 		// indicate the "direction" of the update.
@@ -1077,7 +1064,6 @@ func newChanAnnouncement(localIdentity, remotePub *btcec.PublicKey,
 
 	// TODO(roasbeef): add real sig, populate proper FeeSchema
 	chanUpdateAnn := &lnwire.ChannelUpdateAnnouncement{
-		Signature:                 localProof.nodeSig,
 		ShortChannelID:            chanID,
 		Timestamp:                 uint32(time.Now().Unix()),
 		Flags:                     chanFlags,
@@ -1087,10 +1073,40 @@ func newChanAnnouncement(localIdentity, remotePub *btcec.PublicKey,
 		FeeProportionalMillionths: 0,
 	}
 
-	return &chanAnnouncement{
-		chanAnn:    chanAnn,
-		edgeUpdate: chanUpdateAnn,
+	chanUpdateAnn.Signature, err = f.cfg.SignAnnouncement(chanUpdateAnn)
+	if err != nil {
+		return nil, errors.Errorf("unable to generate channel "+
+			"update announcement signature: %v", err)
 	}
+
+	// Channel proof should be announced in the separate message, so we
+	// already have the bitcoin signature but in order to construct
+	// the proof we also need node signature. Use message signer in order
+	// to sign the message with node private key.
+	nodeSig, err := f.cfg.SignAnnouncement(chanAnn)
+	if err != nil {
+		return nil, errors.Errorf("unable to generate node "+
+			"signature for channel announcement: %v", err)
+	}
+
+	bitcoinSig, err := f.cfg.SignNodeKey(localPubKey, localFundingKey)
+	if err != nil {
+		return nil, errors.Errorf("unable to generate bitcoin "+
+			"signature for node public key: %v", err)
+	}
+
+	proof := &lnwire.AnnounceSignatures{
+		ChannelID:        chanPoint,
+		ShortChannelID:   chanID,
+		NodeSignature:    nodeSig,
+		BitcoinSignature: bitcoinSig,
+	}
+
+	return &chanAnnouncement{
+		chanAnn:       chanAnn,
+		chanUpdateAnn: chanUpdateAnn,
+		chanProof:     proof,
+	}, nil
 }
 
 // announceChannel announces a newly created channel to the rest of the network
@@ -1098,17 +1114,23 @@ func newChanAnnouncement(localIdentity, remotePub *btcec.PublicKey,
 // network to recognize the legitimacy of the channel. The crafted
 // announcements are then send to the channel router to handle broadcasting to
 // the network during its next trickle.
-func (f *fundingManager) announceChannel(idKey, remoteIDKey *btcec.PublicKey,
-	channel *lnwallet.LightningChannel, chanID lnwire.ShortChannelID, localProof,
-	remoteProof *channelProof) {
+func (f *fundingManager) announceChannel(localIDKey, remoteIDKey *btcec.PublicKey,
+	localFundingKey, remoteFundingKey *btcec.PublicKey, chanID lnwire.ShortChannelID,
+	chanPoint wire.OutPoint) {
 
-	// TODO(roasbeef): need a Signer.SignMessage method to finalize
-	// advertisements
-	chanAnnouncement := newChanAnnouncement(idKey, remoteIDKey, channel, chanID,
-		localProof, remoteProof)
+	ann, err := f.newChanAnnouncement(localIDKey, remoteIDKey, localFundingKey,
+		remoteFundingKey, chanID, chanPoint)
+	if err != nil {
+		fndgLog.Errorf("can't generate channel announcement: %v", err)
+		return
+	}
 
-	f.cfg.SendToDiscovery(chanAnnouncement.chanAnn)
-	f.cfg.SendToDiscovery(chanAnnouncement.edgeUpdate)
+	fndgLog.Infof("Send channel, channel update, and proof announcements"+
+		" for chanID=%v, shortChannelID=%v to discovery service",
+		chanPoint, chanID.ToUint64())
+	f.cfg.SendToDiscovery(ann.chanAnn)
+	f.cfg.SendToDiscovery(ann.chanUpdateAnn)
+	f.cfg.SendToDiscovery(ann.chanProof)
 }
 
 // initFundingWorkflow sends a message to the funding manager instructing it
diff --git a/peer.go b/peer.go
index c348de5c..5783e0af 100644
--- a/peer.go
+++ b/peer.go
@@ -494,12 +494,15 @@ out:
 			isChanUpdate = true
 			targetChan = msg.ChannelPoint
 
-		case *lnwire.NodeAnnouncement,
+		case *lnwire.ChannelUpdateAnnouncement,
 			*lnwire.ChannelAnnouncement,
-			*lnwire.ChannelUpdateAnnouncement:
+			*lnwire.NodeAnnouncement,
+			*lnwire.AnnounceSignatures:
 
 			p.server.discoverSrv.ProcessRemoteAnnouncement(msg,
 				p.addr.IdentityKey)
+		default:
+			peerLog.Errorf("unknown message received from peer "+"%v", p)
 		}
 
 		if isChanUpdate {
diff --git a/server.go b/server.go
index cbc028d6..abafa067 100644
--- a/server.go
+++ b/server.go
@@ -168,8 +168,23 @@ func newServer(listenAddrs []string, notifier chainntnfs.ChainNotifier,
 		selfAddrs = append(selfAddrs, addr)
 	}
 
+	// TODO(roasbeef): remove once we actually sign the funding_locked
+	// stuffs
+	fakeSigHex, err := hex.DecodeString("30450221008ce2bc69281ce27da07e66" +
+		"83571319d18e949ddfa2965fb6caa1bf0314f882d70220299105481d63e0f" +
+		"4bc2a88121167221b6700d72a0ead154c03be696a292d24ae")
+	if err != nil {
+		return nil, err
+	}
+
+	fakeSig, err := btcec.ParseSignature(fakeSigHex, btcec.S256())
+	if err != nil {
+		return nil, err
+	}
+
 	chanGraph := chanDB.ChannelGraph()
 	self := &channeldb.LightningNode{
+		AuthSig:    fakeSig,
 		LastUpdate: time.Now(),
 		Addresses:  selfAddrs,
 		PubKey:     privKey.PubKey(),
@@ -202,10 +217,12 @@ func newServer(listenAddrs []string, notifier chainntnfs.ChainNotifier,
 	}
 
 	s.discoverSrv, err = discovery.New(discovery.Config{
-		Broadcast:    s.broadcastMessage,
-		Notifier:     s.chainNotifier,
-		Router:       s.chanRouter,
-		SendMessages: s.sendToPeer,
+		Broadcast:        s.broadcastMessage,
+		Notifier:         s.chainNotifier,
+		Router:           s.chanRouter,
+		SendToPeer:       s.sendToPeer,
+		TrickleDelay:     time.Millisecond * 300,
+		ProofMatureDelta: 0,
 	})
 	if err != nil {
 		return nil, err
@@ -218,8 +235,16 @@ func newServer(listenAddrs []string, notifier chainntnfs.ChainNotifier,
 		IDKey:    s.identityPriv.PubKey(),
 		Wallet:   wallet,
 		Notifier: s.chainNotifier,
-		SendToDiscovery: func(msg lnwire.Message) {
-			s.discoverSrv.ProcessLocalAnnouncement(msg,
+		SignNodeKey: func(nodeKey, fundingKey *btcec.PublicKey) (*btcec.Signature,
+			error) {
+			return fakeSig, nil
+		},
+		SignAnnouncement: func(msg lnwire.Message) (*btcec.Signature,
+			error) {
+			return fakeSig, nil
+		},
+		SendToDiscovery: func(msg lnwire.Message) chan error {
+			return s.discoverSrv.ProcessLocalAnnouncement(msg,
 				s.identityPriv.PubKey())
 		},
 		ArbiterChan: s.breachArbiter.newContracts,