diff --git a/monero-harness/src/rpc/monerod.rs b/monero-harness/src/rpc/monerod.rs
index 9e32c645..aa00a62d 100644
--- a/monero-harness/src/rpc/monerod.rs
+++ b/monero-harness/src/rpc/monerod.rs
@@ -6,12 +6,7 @@ use crate::{
 use anyhow::Result;
 use reqwest::Url;
 use serde::{Deserialize, Serialize};
-
-// #[cfg(not(test))]
-// use tracing::debug;
-//
-// #[cfg(test)]
-use std::eprintln as debug;
+use tracing::debug;
 
 /// RPC client for monerod and monero-wallet-rpc.
 #[derive(Debug, Clone)]
diff --git a/monero-harness/src/rpc/wallet.rs b/monero-harness/src/rpc/wallet.rs
index 7afaa2c8..a81702ac 100644
--- a/monero-harness/src/rpc/wallet.rs
+++ b/monero-harness/src/rpc/wallet.rs
@@ -3,9 +3,7 @@ use crate::rpc::{Request, Response};
 use anyhow::Result;
 use reqwest::Url;
 use serde::{Deserialize, Serialize};
-
-// TODO: Either use println! directly or import tracing also?
-use std::println as debug;
+use tracing::debug;
 
 /// JSON RPC client for monero-wallet-rpc.
 #[derive(Debug)]
diff --git a/swap/Cargo.toml b/swap/Cargo.toml
index de572e12..fa283dd7 100644
--- a/swap/Cargo.toml
+++ b/swap/Cargo.toml
@@ -12,13 +12,15 @@ atty = "0.2"
 backoff = { version = "0.2", features = ["tokio"] }
 base64 = "0.12"
 bitcoin = { version = "0.23", features = ["rand", "use-serde"] } # TODO: Upgrade other crates in this repo to use this version.
-bitcoin-harness = { git = "https://github.com/coblox/bitcoin-harness-rs", rev = "d402b36d3d6406150e3bfb71492ff4a0a7cb290e" }
+bitcoin-harness = { git = "https://github.com/coblox/bitcoin-harness-rs", rev = "f1bbe6a4540d0741f1f4f22577cfeeadbfd7aaaf" }
 derivative = "2"
 futures = { version = "0.3", default-features = false }
+genawaiter = "0.99.1"
 libp2p = { version = "0.29", default-features = false, features = ["tcp-tokio", "yamux", "mplex", "dns", "noise", "request-response"] }
 libp2p-tokio-socks5 = "0.4"
 log = { version = "0.4", features = ["serde"] }
 monero = "0.9"
+monero-harness = { path = "../monero-harness" }
 rand = "0.7"
 reqwest = { version = "0.10", default-features = false, features = ["socks"] }
 serde = { version = "1", features = ["derive"] }
@@ -45,6 +47,7 @@ hyper = "0.13"
 port_check = "0.1"
 spectral = "0.6"
 tempfile = "3"
+testcontainers = "0.10"
 
 [features]
 default = []
diff --git a/swap/src/alice.rs b/swap/src/alice.rs
index ca8a45e3..4e57c135 100644
--- a/swap/src/alice.rs
+++ b/swap/src/alice.rs
@@ -1,22 +1,30 @@
 //! Run an XMR/BTC swap in the role of Alice.
 //! Alice holds XMR and wishes receive BTC.
 use anyhow::Result;
+use async_trait::async_trait;
+use backoff::{backoff::Constant as ConstantBackoff, future::FutureOperation as _};
+use genawaiter::GeneratorState;
 use libp2p::{
     core::{identity::Keypair, Multiaddr},
     request_response::ResponseChannel,
     NetworkBehaviour, PeerId,
 };
 use rand::rngs::OsRng;
-use std::thread;
-use tracing::{debug, info};
+use std::{sync::Arc, time::Duration};
+use tokio::sync::Mutex;
+use tracing::{debug, info, warn};
 
 mod amounts;
 mod message0;
 mod message1;
 mod message2;
+mod message3;
 
-use self::{amounts::*, message0::*, message1::*, message2::*};
+use self::{amounts::*, message0::*, message1::*, message2::*, message3::*};
 use crate::{
+    bitcoin,
+    bitcoin::TX_LOCK_MINE_TIMEOUT,
+    monero,
     network::{
         peer_tracker::{self, PeerTracker},
         request_response::AliceToBob,
@@ -24,32 +32,111 @@ use crate::{
     },
     SwapAmounts, PUNISH_TIMELOCK, REFUND_TIMELOCK,
 };
-use xmr_btc::{alice::State0, bob, monero};
-
-pub type Swarm = libp2p::Swarm<Alice>;
+use xmr_btc::{
+    alice::{self, action_generator, Action, ReceiveBitcoinRedeemEncsig, State0},
+    bitcoin::BroadcastSignedTransaction,
+    bob,
+    monero::{CreateWalletForOutput, Transfer},
+};
 
 pub async fn swap(
+    bitcoin_wallet: Arc<bitcoin::Wallet>,
+    monero_wallet: Arc<monero::Wallet>,
     listen: Multiaddr,
     local_port: Option<u16>,
-    redeem_address: ::bitcoin::Address,
-    punish_address: ::bitcoin::Address,
 ) -> Result<()> {
+    struct Network {
+        swarm: Arc<Mutex<Swarm>>,
+        channel: Option<ResponseChannel<AliceToBob>>,
+    }
+
+    impl Network {
+        pub async fn send_message2(&mut self, proof: monero::TransferProof) {
+            match self.channel.take() {
+                None => warn!("Channel not found, did you call this twice?"),
+                Some(channel) => {
+                    let mut guard = self.swarm.lock().await;
+                    guard.send_message2(channel, alice::Message2 {
+                        tx_lock_proof: proof,
+                    });
+                    info!("Sent transfer proof");
+                }
+            }
+        }
+    }
+
+    // TODO: For retry, use `backoff::ExponentialBackoff` in production as opposed
+    // to `ConstantBackoff`.
+
+    #[async_trait]
+    impl ReceiveBitcoinRedeemEncsig for Network {
+        async fn receive_bitcoin_redeem_encsig(&mut self) -> xmr_btc::bitcoin::EncryptedSignature {
+            #[derive(Debug)]
+            struct UnexpectedMessage;
+
+            let encsig = (|| async {
+                let mut guard = self.swarm.lock().await;
+                let encsig = match guard.next().await {
+                    OutEvent::Message3(msg) => msg.tx_redeem_encsig,
+                    other => {
+                        warn!("Expected Bob's Bitcoin redeem encsig, got: {:?}", other);
+                        return Err(backoff::Error::Transient(UnexpectedMessage));
+                    }
+                };
+
+                Result::<_, backoff::Error<UnexpectedMessage>>::Ok(encsig)
+            })
+            .retry(ConstantBackoff::new(Duration::from_secs(1)))
+            .await
+            .expect("transient errors to be retried");
+
+            info!("Received Bitcoin redeem encsig");
+
+            encsig
+        }
+    }
+
     let mut swarm = new_swarm(listen, local_port)?;
     let message0: bob::Message0;
+    let mut state0: Option<alice::State0> = None;
     let mut last_amounts: Option<SwapAmounts> = None;
 
+    // TODO: This loop is a neat idea for local development, as it allows us to keep
+    // Alice up and let Bob keep trying to connect, request amounts and/or send the
+    // first message of the handshake, but it comes at the cost of needing to handle
+    // mutable state, which has already been the source of a bug at one point. This
+    // is an obvious candidate for refactoring
     loop {
         match swarm.next().await {
-            OutEvent::ConnectionEstablished(id) => {
-                info!("Connection established with: {}", id);
+            OutEvent::ConnectionEstablished(bob) => {
+                info!("Connection established with: {}", bob);
             }
             OutEvent::Request(amounts::OutEvent::Btc { btc, channel }) => {
-                debug!("Got request from Bob to swap {}", btc);
                 let amounts = calculate_amounts(btc);
-                // TODO: We cache the last amounts returned, this needs improving along with
-                // verification of message 0.
                 last_amounts = Some(amounts);
                 swarm.send_amounts(channel, amounts);
+
+                let SwapAmounts { btc, xmr } = amounts;
+
+                let redeem_address = bitcoin_wallet.as_ref().new_address().await?;
+                let punish_address = redeem_address.clone();
+
+                // TODO: Pass this in using <R: RngCore + CryptoRng>
+                let rng = &mut OsRng;
+                let state = State0::new(
+                    rng,
+                    btc,
+                    xmr,
+                    REFUND_TIMELOCK,
+                    PUNISH_TIMELOCK,
+                    redeem_address,
+                    punish_address,
+                );
+
+                info!("Commencing handshake");
+                swarm.set_state0(state.clone());
+
+                state0 = Some(state)
             }
             OutEvent::Message0(msg) => {
                 // We don't want Bob to be able to crash us by sending an out of
@@ -64,26 +151,7 @@ pub async fn swap(
         };
     }
 
-    let (xmr, btc) = match last_amounts {
-        Some(p) => (p.xmr, p.btc),
-        None => unreachable!("should have amounts by here"),
-    };
-
-    // TODO: Pass this in using <R: RngCore + CryptoRng>
-    let rng = &mut OsRng;
-    let state0 = State0::new(
-        rng,
-        btc,
-        xmr,
-        REFUND_TIMELOCK,
-        PUNISH_TIMELOCK,
-        redeem_address,
-        punish_address,
-    );
-    swarm.set_state0(state0.clone());
-
-    // TODO: Can we verify message 0 before calling this so we never fail?
-    let state1 = state0.receive(message0).expect("failed to receive msg 0");
+    let state1 = state0.expect("to be set").receive(message0)?;
 
     let (state2, channel) = match swarm.next().await {
         OutEvent::Message1 { msg, channel } => {
@@ -96,17 +164,72 @@ pub async fn swap(
     let msg = state2.next_message();
     swarm.send_message1(channel, msg);
 
-    let _state3 = match swarm.next().await {
-        OutEvent::Message2(msg) => state2.receive(msg)?,
+    let (state3, channel) = match swarm.next().await {
+        OutEvent::Message2 { msg, channel } => {
+            let state3 = state2.receive(msg)?;
+            (state3, channel)
+        }
         other => panic!("Unexpected event: {:?}", other),
     };
 
     info!("Handshake complete, we now have State3 for Alice.");
 
-    thread::park();
-    Ok(())
+    let network = Arc::new(Mutex::new(Network {
+        swarm: Arc::new(Mutex::new(swarm)),
+        channel: Some(channel),
+    }));
+
+    let mut action_generator = action_generator(
+        network.clone(),
+        bitcoin_wallet.clone(),
+        state3,
+        TX_LOCK_MINE_TIMEOUT,
+    );
+
+    loop {
+        let state = action_generator.async_resume().await;
+
+        tracing::info!("Resumed execution of generator, got: {:?}", state);
+
+        match state {
+            GeneratorState::Yielded(Action::LockXmr {
+                amount,
+                public_spend_key,
+                public_view_key,
+            }) => {
+                let (transfer_proof, _) = monero_wallet
+                    .transfer(public_spend_key, public_view_key, amount)
+                    .await?;
+
+                let mut guard = network.as_ref().lock().await;
+                guard.send_message2(transfer_proof).await;
+                info!("Sent transfer proof");
+            }
+
+            GeneratorState::Yielded(Action::RedeemBtc(tx)) => {
+                let _ = bitcoin_wallet.broadcast_signed_transaction(tx).await?;
+            }
+            GeneratorState::Yielded(Action::CancelBtc(tx)) => {
+                let _ = bitcoin_wallet.broadcast_signed_transaction(tx).await?;
+            }
+            GeneratorState::Yielded(Action::PunishBtc(tx)) => {
+                let _ = bitcoin_wallet.broadcast_signed_transaction(tx).await?;
+            }
+            GeneratorState::Yielded(Action::CreateMoneroWalletForOutput {
+                spend_key,
+                view_key,
+            }) => {
+                monero_wallet
+                    .create_and_load_wallet_for_output(spend_key, view_key)
+                    .await?;
+            }
+            GeneratorState::Complete(()) => return Ok(()),
+        }
+    }
 }
 
+pub type Swarm = libp2p::Swarm<Alice>;
+
 fn new_swarm(listen: Multiaddr, port: Option<u16>) -> Result<Swarm> {
     use anyhow::Context as _;
 
@@ -155,7 +278,11 @@ pub enum OutEvent {
         msg: bob::Message1,
         channel: ResponseChannel<AliceToBob>,
     },
-    Message2(bob::Message2),
+    Message2 {
+        msg: bob::Message2,
+        channel: ResponseChannel<AliceToBob>,
+    },
+    Message3(bob::Message3),
 }
 
 impl From<peer_tracker::OutEvent> for OutEvent {
@@ -193,7 +320,15 @@ impl From<message1::OutEvent> for OutEvent {
 impl From<message2::OutEvent> for OutEvent {
     fn from(event: message2::OutEvent) -> Self {
         match event {
-            message2::OutEvent::Msg(msg) => OutEvent::Message2(msg),
+            message2::OutEvent::Msg { msg, channel } => OutEvent::Message2 { msg, channel },
+        }
+    }
+}
+
+impl From<message3::OutEvent> for OutEvent {
+    fn from(event: message3::OutEvent) -> Self {
+        match event {
+            message3::OutEvent::Msg(msg) => OutEvent::Message3(msg),
         }
     }
 }
@@ -208,6 +343,7 @@ pub struct Alice {
     message0: Message0,
     message1: Message1,
     message2: Message2,
+    message3: Message3,
     #[behaviour(ignore)]
     identity: Keypair,
 }
@@ -225,10 +361,12 @@ impl Alice {
     pub fn send_amounts(&mut self, channel: ResponseChannel<AliceToBob>, amounts: SwapAmounts) {
         let msg = AliceToBob::Amounts(amounts);
         self.amounts.send(channel, msg);
+        info!("Sent amounts response");
     }
 
     /// Message0 gets sent within the network layer using this state0.
     pub fn set_state0(&mut self, state: State0) {
+        debug!("Set state 0");
         let _ = self.message0.set_state(state);
     }
 
@@ -238,7 +376,18 @@ impl Alice {
         channel: ResponseChannel<AliceToBob>,
         msg: xmr_btc::alice::Message1,
     ) {
-        self.message1.send(channel, msg)
+        self.message1.send(channel, msg);
+        debug!("Sent Message1");
+    }
+
+    /// Send Message2 to Bob in response to receiving his Message2.
+    pub fn send_message2(
+        &mut self,
+        channel: ResponseChannel<AliceToBob>,
+        msg: xmr_btc::alice::Message2,
+    ) {
+        self.message2.send(channel, msg);
+        debug!("Sent Message2");
     }
 }
 
@@ -252,17 +401,18 @@ impl Default for Alice {
             message0: Message0::default(),
             message1: Message1::default(),
             message2: Message2::default(),
+            message3: Message3::default(),
             identity,
         }
     }
 }
 
 fn calculate_amounts(btc: ::bitcoin::Amount) -> SwapAmounts {
-    const XMR_PER_BTC: u64 = 100; // TODO: Get this from an exchange.
+    // TODO: Get this from an exchange.
+    // This value corresponds to 100 XMR per BTC
+    const PICONERO_PER_SAT: u64 = 1_000_000;
 
-    // TODO: Check that this is correct.
-    // XMR uses 12 zerose BTC uses 8.
-    let picos = (btc.as_sat() * 10000) * XMR_PER_BTC;
+    let picos = btc.as_sat() * PICONERO_PER_SAT;
     let xmr = monero::Amount::from_piconero(picos);
 
     SwapAmounts { btc, xmr }
diff --git a/swap/src/alice/amounts.rs b/swap/src/alice/amounts.rs
index 39396861..33e230d5 100644
--- a/swap/src/alice/amounts.rs
+++ b/swap/src/alice/amounts.rs
@@ -1,11 +1,10 @@
-use anyhow::Result;
 use libp2p::{
     request_response::{
-        handler::RequestProtocol, ProtocolSupport, RequestId, RequestResponse,
-        RequestResponseConfig, RequestResponseEvent, RequestResponseMessage, ResponseChannel,
+        handler::RequestProtocol, ProtocolSupport, RequestResponse, RequestResponseConfig,
+        RequestResponseEvent, RequestResponseMessage, ResponseChannel,
     },
     swarm::{NetworkBehaviourAction, NetworkBehaviourEventProcess, PollParameters},
-    NetworkBehaviour, PeerId,
+    NetworkBehaviour,
 };
 use std::{
     collections::VecDeque,
@@ -14,7 +13,7 @@ use std::{
 };
 use tracing::{debug, error};
 
-use crate::network::request_response::{AliceToBob, BobToAlice, Codec, Protocol, TIMEOUT};
+use crate::network::request_response::{AliceToBob, AmountsProtocol, BobToAlice, Codec, TIMEOUT};
 
 #[derive(Debug)]
 pub enum OutEvent {
@@ -29,7 +28,7 @@ pub enum OutEvent {
 #[behaviour(out_event = "OutEvent", poll_method = "poll")]
 #[allow(missing_debug_implementations)]
 pub struct Amounts {
-    rr: RequestResponse<Codec>,
+    rr: RequestResponse<Codec<AmountsProtocol>>,
     #[behaviour(ignore)]
     events: VecDeque<OutEvent>,
 }
@@ -40,23 +39,11 @@ impl Amounts {
         self.rr.send_response(channel, msg);
     }
 
-    pub async fn request_amounts(
-        &mut self,
-        alice: PeerId,
-        btc: ::bitcoin::Amount,
-    ) -> Result<RequestId> {
-        let msg = BobToAlice::AmountsFromBtc(btc);
-        let id = self.rr.send_request(&alice, msg);
-        debug!("Request sent to: {}", alice);
-
-        Ok(id)
-    }
-
     fn poll(
         &mut self,
         _: &mut Context<'_>,
         _: &mut impl PollParameters,
-    ) -> Poll<NetworkBehaviourAction<RequestProtocol<Codec>, OutEvent>> {
+    ) -> Poll<NetworkBehaviourAction<RequestProtocol<Codec<AmountsProtocol>>, OutEvent>> {
         if let Some(event) = self.events.pop_front() {
             return Poll::Ready(NetworkBehaviourAction::GenerateEvent(event));
         }
@@ -75,7 +62,7 @@ impl Default for Amounts {
         Self {
             rr: RequestResponse::new(
                 Codec::default(),
-                vec![(Protocol, ProtocolSupport::Full)],
+                vec![(AmountsProtocol, ProtocolSupport::Full)],
                 config,
             ),
             events: Default::default(),
@@ -92,12 +79,12 @@ impl NetworkBehaviourEventProcess<RequestResponseEvent<BobToAlice, AliceToBob>>
                         request, channel, ..
                     },
                 ..
-            } => match request {
-                BobToAlice::AmountsFromBtc(btc) => {
+            } => {
+                if let BobToAlice::AmountsFromBtc(btc) = request {
+                    debug!("Received amounts request");
                     self.events.push_back(OutEvent::Btc { btc, channel })
                 }
-                other => debug!("got request: {:?}", other),
-            },
+            }
             RequestResponseEvent::Message {
                 message: RequestResponseMessage::Response { .. },
                 ..
diff --git a/swap/src/alice/message0.rs b/swap/src/alice/message0.rs
index 460c63e4..b10b3aca 100644
--- a/swap/src/alice/message0.rs
+++ b/swap/src/alice/message0.rs
@@ -15,7 +15,7 @@ use std::{
 };
 use tracing::{debug, error};
 
-use crate::network::request_response::{AliceToBob, BobToAlice, Codec, Protocol, TIMEOUT};
+use crate::network::request_response::{AliceToBob, BobToAlice, Codec, Message0Protocol, TIMEOUT};
 use xmr_btc::{alice::State0, bob};
 
 #[derive(Debug)]
@@ -28,7 +28,7 @@ pub enum OutEvent {
 #[behaviour(out_event = "OutEvent", poll_method = "poll")]
 #[allow(missing_debug_implementations)]
 pub struct Message0 {
-    rr: RequestResponse<Codec>,
+    rr: RequestResponse<Codec<Message0Protocol>>,
     #[behaviour(ignore)]
     events: VecDeque<OutEvent>,
     #[behaviour(ignore)]
@@ -49,7 +49,7 @@ impl Message0 {
         &mut self,
         _: &mut Context<'_>,
         _: &mut impl PollParameters,
-    ) -> Poll<NetworkBehaviourAction<RequestProtocol<Codec>, OutEvent>> {
+    ) -> Poll<NetworkBehaviourAction<RequestProtocol<Codec<Message0Protocol>>, OutEvent>> {
         if let Some(event) = self.events.pop_front() {
             return Poll::Ready(NetworkBehaviourAction::GenerateEvent(event));
         }
@@ -67,7 +67,7 @@ impl Default for Message0 {
         Self {
             rr: RequestResponse::new(
                 Codec::default(),
-                vec![(Protocol, ProtocolSupport::Full)],
+                vec![(Message0Protocol, ProtocolSupport::Full)],
                 config,
             ),
             events: Default::default(),
@@ -85,8 +85,9 @@ impl NetworkBehaviourEventProcess<RequestResponseEvent<BobToAlice, AliceToBob>>
                         request, channel, ..
                     },
                 ..
-            } => match request {
-                BobToAlice::Message0(msg) => {
+            } => {
+                if let BobToAlice::Message0(msg) = request {
+                    debug!("Received Message0");
                     let response = match &self.state {
                         None => panic!("No state, did you forget to set it?"),
                         Some(state) => {
@@ -95,10 +96,11 @@ impl NetworkBehaviourEventProcess<RequestResponseEvent<BobToAlice, AliceToBob>>
                         }
                     };
                     self.rr.send_response(channel, response);
+                    debug!("Sent Message0");
+
                     self.events.push_back(OutEvent::Msg(msg));
                 }
-                other => debug!("got request: {:?}", other),
-            },
+            }
             RequestResponseEvent::Message {
                 message: RequestResponseMessage::Response { .. },
                 ..
diff --git a/swap/src/alice/message1.rs b/swap/src/alice/message1.rs
index 27df9e20..4d44b0a2 100644
--- a/swap/src/alice/message1.rs
+++ b/swap/src/alice/message1.rs
@@ -13,7 +13,7 @@ use std::{
 };
 use tracing::{debug, error};
 
-use crate::network::request_response::{AliceToBob, BobToAlice, Codec, Protocol, TIMEOUT};
+use crate::network::request_response::{AliceToBob, BobToAlice, Codec, Message1Protocol, TIMEOUT};
 use xmr_btc::bob;
 
 #[derive(Debug)]
@@ -31,7 +31,7 @@ pub enum OutEvent {
 #[behaviour(out_event = "OutEvent", poll_method = "poll")]
 #[allow(missing_debug_implementations)]
 pub struct Message1 {
-    rr: RequestResponse<Codec>,
+    rr: RequestResponse<Codec<Message1Protocol>>,
     #[behaviour(ignore)]
     events: VecDeque<OutEvent>,
 }
@@ -46,7 +46,7 @@ impl Message1 {
         &mut self,
         _: &mut Context<'_>,
         _: &mut impl PollParameters,
-    ) -> Poll<NetworkBehaviourAction<RequestProtocol<Codec>, OutEvent>> {
+    ) -> Poll<NetworkBehaviourAction<RequestProtocol<Codec<Message1Protocol>>, OutEvent>> {
         if let Some(event) = self.events.pop_front() {
             return Poll::Ready(NetworkBehaviourAction::GenerateEvent(event));
         }
@@ -64,7 +64,7 @@ impl Default for Message1 {
         Self {
             rr: RequestResponse::new(
                 Codec::default(),
-                vec![(Protocol, ProtocolSupport::Full)],
+                vec![(Message1Protocol, ProtocolSupport::Full)],
                 config,
             ),
             events: Default::default(),
@@ -81,12 +81,12 @@ impl NetworkBehaviourEventProcess<RequestResponseEvent<BobToAlice, AliceToBob>>
                         request, channel, ..
                     },
                 ..
-            } => match request {
-                BobToAlice::Message1(msg) => {
+            } => {
+                if let BobToAlice::Message1(msg) = request {
+                    debug!("Received Message1");
                     self.events.push_back(OutEvent::Msg { msg, channel });
                 }
-                other => debug!("got request: {:?}", other),
-            },
+            }
             RequestResponseEvent::Message {
                 message: RequestResponseMessage::Response { .. },
                 ..
diff --git a/swap/src/alice/message2.rs b/swap/src/alice/message2.rs
index a8704c0d..bab62d3e 100644
--- a/swap/src/alice/message2.rs
+++ b/swap/src/alice/message2.rs
@@ -13,12 +13,17 @@ use std::{
 };
 use tracing::{debug, error};
 
-use crate::network::request_response::{AliceToBob, BobToAlice, Codec, Protocol, TIMEOUT};
+use crate::network::request_response::{AliceToBob, BobToAlice, Codec, Message2Protocol, TIMEOUT};
 use xmr_btc::bob;
 
 #[derive(Debug)]
 pub enum OutEvent {
-    Msg(bob::Message2),
+    Msg {
+        /// Received message from Bob.
+        msg: bob::Message2,
+        /// Channel to send back Alice's message 2.
+        channel: ResponseChannel<AliceToBob>,
+    },
 }
 
 /// A `NetworkBehaviour` that represents receiving of message 2 from Bob.
@@ -26,7 +31,7 @@ pub enum OutEvent {
 #[behaviour(out_event = "OutEvent", poll_method = "poll")]
 #[allow(missing_debug_implementations)]
 pub struct Message2 {
-    rr: RequestResponse<Codec>,
+    rr: RequestResponse<Codec<Message2Protocol>>,
     #[behaviour(ignore)]
     events: VecDeque<OutEvent>,
 }
@@ -41,7 +46,7 @@ impl Message2 {
         &mut self,
         _: &mut Context<'_>,
         _: &mut impl PollParameters,
-    ) -> Poll<NetworkBehaviourAction<RequestProtocol<Codec>, OutEvent>> {
+    ) -> Poll<NetworkBehaviourAction<RequestProtocol<Codec<Message2Protocol>>, OutEvent>> {
         if let Some(event) = self.events.pop_front() {
             return Poll::Ready(NetworkBehaviourAction::GenerateEvent(event));
         }
@@ -59,7 +64,7 @@ impl Default for Message2 {
         Self {
             rr: RequestResponse::new(
                 Codec::default(),
-                vec![(Protocol, ProtocolSupport::Full)],
+                vec![(Message2Protocol, ProtocolSupport::Full)],
                 config,
             ),
             events: Default::default(),
@@ -76,15 +81,12 @@ impl NetworkBehaviourEventProcess<RequestResponseEvent<BobToAlice, AliceToBob>>
                         request, channel, ..
                     },
                 ..
-            } => match request {
-                BobToAlice::Message2(msg) => {
-                    self.events.push_back(OutEvent::Msg(msg));
-                    // Send back empty response so that the request/response protocol completes.
-                    let msg = AliceToBob::EmptyResponse;
-                    self.rr.send_response(channel, msg);
+            } => {
+                if let BobToAlice::Message2(msg) = request {
+                    debug!("Received Message2");
+                    self.events.push_back(OutEvent::Msg { msg, channel });
                 }
-                other => debug!("got request: {:?}", other),
-            },
+            }
             RequestResponseEvent::Message {
                 message: RequestResponseMessage::Response { .. },
                 ..
diff --git a/swap/src/alice/message3.rs b/swap/src/alice/message3.rs
new file mode 100644
index 00000000..0e4bd773
--- /dev/null
+++ b/swap/src/alice/message3.rs
@@ -0,0 +1,94 @@
+use libp2p::{
+    request_response::{
+        handler::RequestProtocol, ProtocolSupport, RequestResponse, RequestResponseConfig,
+        RequestResponseEvent, RequestResponseMessage,
+    },
+    swarm::{NetworkBehaviourAction, NetworkBehaviourEventProcess, PollParameters},
+    NetworkBehaviour,
+};
+use std::{
+    collections::VecDeque,
+    task::{Context, Poll},
+    time::Duration,
+};
+use tracing::{debug, error};
+
+use crate::network::request_response::{AliceToBob, BobToAlice, Codec, Message3Protocol, TIMEOUT};
+use xmr_btc::bob;
+
+#[derive(Debug)]
+pub enum OutEvent {
+    Msg(bob::Message3),
+}
+
+/// A `NetworkBehaviour` that represents receiving of message 3 from Bob.
+#[derive(NetworkBehaviour)]
+#[behaviour(out_event = "OutEvent", poll_method = "poll")]
+#[allow(missing_debug_implementations)]
+pub struct Message3 {
+    rr: RequestResponse<Codec<Message3Protocol>>,
+    #[behaviour(ignore)]
+    events: VecDeque<OutEvent>,
+}
+
+impl Message3 {
+    fn poll(
+        &mut self,
+        _: &mut Context<'_>,
+        _: &mut impl PollParameters,
+    ) -> Poll<NetworkBehaviourAction<RequestProtocol<Codec<Message3Protocol>>, OutEvent>> {
+        if let Some(event) = self.events.pop_front() {
+            return Poll::Ready(NetworkBehaviourAction::GenerateEvent(event));
+        }
+
+        Poll::Pending
+    }
+}
+
+impl Default for Message3 {
+    fn default() -> Self {
+        let timeout = Duration::from_secs(TIMEOUT);
+        let mut config = RequestResponseConfig::default();
+        config.set_request_timeout(timeout);
+
+        Self {
+            rr: RequestResponse::new(
+                Codec::default(),
+                vec![(Message3Protocol, ProtocolSupport::Full)],
+                config,
+            ),
+            events: Default::default(),
+        }
+    }
+}
+
+impl NetworkBehaviourEventProcess<RequestResponseEvent<BobToAlice, AliceToBob>> for Message3 {
+    fn inject_event(&mut self, event: RequestResponseEvent<BobToAlice, AliceToBob>) {
+        match event {
+            RequestResponseEvent::Message {
+                message:
+                    RequestResponseMessage::Request {
+                        request, channel, ..
+                    },
+                ..
+            } => {
+                if let BobToAlice::Message3(msg) = request {
+                    debug!("Received Message3");
+                    self.events.push_back(OutEvent::Msg(msg));
+                    // Send back empty response so that the request/response protocol completes.
+                    self.rr.send_response(channel, AliceToBob::Message3);
+                }
+            }
+            RequestResponseEvent::Message {
+                message: RequestResponseMessage::Response { .. },
+                ..
+            } => panic!("Alice should not get a Response"),
+            RequestResponseEvent::InboundFailure { error, .. } => {
+                error!("Inbound failure: {:?}", error);
+            }
+            RequestResponseEvent::OutboundFailure { error, .. } => {
+                error!("Outbound failure: {:?}", error);
+            }
+        }
+    }
+}
diff --git a/swap/src/bitcoin.rs b/swap/src/bitcoin.rs
index 2a4a8e8d..f9e1493d 100644
--- a/swap/src/bitcoin.rs
+++ b/swap/src/bitcoin.rs
@@ -1,14 +1,19 @@
+use std::time::Duration;
+
 use anyhow::Result;
 use async_trait::async_trait;
-use backoff::{future::FutureOperation as _, ExponentialBackoff};
+use backoff::{backoff::Constant as ConstantBackoff, future::FutureOperation as _};
 use bitcoin::{util::psbt::PartiallySignedTransaction, Address, Transaction};
-use bitcoin_harness::bitcoind_rpc::PsbtBase64;
+use bitcoin_harness::{bitcoind_rpc::PsbtBase64, Bitcoind};
 use reqwest::Url;
+use tokio::time;
 use xmr_btc::bitcoin::{
-    Amount, BroadcastSignedTransaction, BuildTxLockPsbt, SignTxLock, TxLock, Txid,
-    WatchForRawTransaction,
+    Amount, BlockHeight, BroadcastSignedTransaction, BuildTxLockPsbt, SignTxLock,
+    TransactionBlockHeight, TxLock, Txid, WatchForRawTransaction,
 };
 
+pub const TX_LOCK_MINE_TIMEOUT: u64 = 3600;
+
 // This is cut'n'paste from xmr_btc/tests/harness/wallet/bitcoin.rs
 
 #[derive(Debug)]
@@ -41,6 +46,22 @@ impl Wallet {
     }
 }
 
+pub async fn make_wallet(
+    name: &str,
+    bitcoind: &Bitcoind<'_>,
+    fund_amount: Amount,
+) -> Result<Wallet> {
+    let wallet = Wallet::new(name, &bitcoind.node_url).await?;
+    let buffer = Amount::from_btc(1.0).unwrap();
+    let amount = fund_amount + buffer;
+
+    let address = wallet.0.new_address().await.unwrap();
+
+    bitcoind.mint(address, amount).await.unwrap();
+
+    Ok(wallet)
+}
+
 #[async_trait]
 impl BuildTxLockPsbt for Wallet {
     async fn build_tx_lock_psbt(
@@ -81,19 +102,63 @@ impl SignTxLock for Wallet {
 impl BroadcastSignedTransaction for Wallet {
     async fn broadcast_signed_transaction(&self, transaction: Transaction) -> Result<Txid> {
         let txid = self.0.send_raw_transaction(transaction).await?;
+
+        // TODO: Instead of guessing how long it will take for the transaction to be
+        // mined we should ask bitcoind for the number of confirmations on `txid`
+
+        // give time for transaction to be mined
+        time::delay_for(Duration::from_millis(1100)).await;
+
         Ok(txid)
     }
 }
 
+// TODO: For retry, use `backoff::ExponentialBackoff` in production as opposed
+// to `ConstantBackoff`.
+
 #[async_trait]
 impl WatchForRawTransaction for Wallet {
     async fn watch_for_raw_transaction(&self, txid: Txid) -> Transaction {
         (|| async { Ok(self.0.get_raw_transaction(txid).await?) })
-            .retry(ExponentialBackoff {
-                max_elapsed_time: None,
-                ..Default::default()
-            })
+            .retry(ConstantBackoff::new(Duration::from_secs(1)))
             .await
             .expect("transient errors to be retried")
     }
 }
+
+#[async_trait]
+impl BlockHeight for Wallet {
+    async fn block_height(&self) -> u32 {
+        (|| async { Ok(self.0.block_height().await?) })
+            .retry(ConstantBackoff::new(Duration::from_secs(1)))
+            .await
+            .expect("transient errors to be retried")
+    }
+}
+
+#[async_trait]
+impl TransactionBlockHeight for Wallet {
+    async fn transaction_block_height(&self, txid: Txid) -> u32 {
+        #[derive(Debug)]
+        enum Error {
+            Io,
+            NotYetMined,
+        }
+
+        (|| async {
+            let block_height = self
+                .0
+                .transaction_block_height(txid)
+                .await
+                .map_err(|_| backoff::Error::Transient(Error::Io))?;
+
+            let block_height =
+                block_height.ok_or_else(|| backoff::Error::Transient(Error::NotYetMined))?;
+
+            Result::<_, backoff::Error<Error>>::Ok(block_height)
+        })
+        .retry(ConstantBackoff::new(Duration::from_secs(1)))
+        .await
+        .expect("transient errors to be retried")
+    }
+}
diff --git a/swap/src/bob.rs b/swap/src/bob.rs
index a955d0fb..451fc200 100644
--- a/swap/src/bob.rs
+++ b/swap/src/bob.rs
@@ -1,46 +1,85 @@
 //! Run an XMR/BTC swap in the role of Bob.
 //! Bob holds BTC and wishes receive XMR.
 use anyhow::Result;
+use async_trait::async_trait;
+use backoff::{backoff::Constant as ConstantBackoff, future::FutureOperation as _};
 use futures::{
     channel::mpsc::{Receiver, Sender},
-    StreamExt,
+    FutureExt, StreamExt,
 };
+use genawaiter::GeneratorState;
 use libp2p::{core::identity::Keypair, Multiaddr, NetworkBehaviour, PeerId};
 use rand::rngs::OsRng;
-use std::{process, thread};
-use tracing::{debug, info};
+use std::{process, sync::Arc, time::Duration};
+use tokio::sync::Mutex;
+use tracing::{debug, info, warn};
 
 mod amounts;
 mod message0;
 mod message1;
 mod message2;
+mod message3;
 
-use self::{amounts::*, message0::*, message1::*, message2::*};
+use self::{amounts::*, message0::*, message1::*, message2::*, message3::*};
 use crate::{
+    bitcoin,
+    bitcoin::TX_LOCK_MINE_TIMEOUT,
+    monero,
     network::{
         peer_tracker::{self, PeerTracker},
         transport, TokioExecutor,
     },
-    Cmd, Never, Rsp, SwapAmounts, PUNISH_TIMELOCK, REFUND_TIMELOCK,
+    Cmd, Rsp, SwapAmounts, PUNISH_TIMELOCK, REFUND_TIMELOCK,
 };
 use xmr_btc::{
     alice,
-    bitcoin::{BroadcastSignedTransaction, BuildTxLockPsbt, SignTxLock},
-    bob::{self, State0},
+    bitcoin::{BroadcastSignedTransaction, EncryptedSignature, SignTxLock},
+    bob::{self, action_generator, ReceiveTransferProof, State0},
+    monero::CreateWalletForOutput,
 };
 
-// FIXME: This whole function is horrible, needs total re-write.
-pub async fn swap<W>(
+pub async fn swap(
+    bitcoin_wallet: Arc<bitcoin::Wallet>,
+    monero_wallet: Arc<monero::Wallet>,
     btc: u64,
     addr: Multiaddr,
     mut cmd_tx: Sender<Cmd>,
     mut rsp_rx: Receiver<Rsp>,
-    refund_address: ::bitcoin::Address,
-    wallet: W,
-) -> Result<()>
-where
-    W: BuildTxLockPsbt + SignTxLock + BroadcastSignedTransaction + Send + Sync + 'static,
-{
+) -> Result<()> {
+    struct Network(Swarm);
+
+    // TODO: For retry, use `backoff::ExponentialBackoff` in production as opposed
+    // to `ConstantBackoff`.
+
+    #[async_trait]
+    impl ReceiveTransferProof for Network {
+        async fn receive_transfer_proof(&mut self) -> monero::TransferProof {
+            #[derive(Debug)]
+            struct UnexpectedMessage;
+
+            let future = self.0.next().shared();
+
+            let proof = (|| async {
+                let proof = match future.clone().await {
+                    OutEvent::Message2(msg) => msg.tx_lock_proof,
+                    other => {
+                        warn!("Expected transfer proof, got: {:?}", other);
+                        return Err(backoff::Error::Transient(UnexpectedMessage));
+                    }
+                };
+
+                Result::<_, backoff::Error<UnexpectedMessage>>::Ok(proof)
+            })
+            .retry(ConstantBackoff::new(Duration::from_secs(1)))
+            .await
+            .expect("transient errors to be retried");
+
+            info!("Received transfer proof");
+
+            proof
+        }
+    }
+
     let mut swarm = new_swarm()?;
 
     libp2p::Swarm::dial_addr(&mut swarm, addr)?;
@@ -48,27 +87,29 @@ where
         OutEvent::ConnectionEstablished(alice) => alice,
         other => panic!("unexpected event: {:?}", other),
     };
-    info!("Connection established.");
+    info!("Connection established with: {}", alice);
 
     swarm.request_amounts(alice.clone(), btc);
 
     let (btc, xmr) = match swarm.next().await {
         OutEvent::Amounts(amounts) => {
-            debug!("Got amounts from Alice: {:?}", amounts);
+            info!("Got amounts from Alice: {:?}", amounts);
             let cmd = Cmd::VerifyAmounts(amounts);
             cmd_tx.try_send(cmd)?;
             let response = rsp_rx.next().await;
             if response == Some(Rsp::Abort) {
-                info!("Amounts no good, aborting ...");
+                info!("User rejected amounts proposed by Alice, aborting...");
                 process::exit(0);
             }
 
-            info!("User verified amounts, continuing with swap ...");
+            info!("User accepted amounts proposed by Alice");
             (amounts.btc, amounts.xmr)
         }
         other => panic!("unexpected event: {:?}", other),
     };
 
+    let refund_address = bitcoin_wallet.new_address().await?;
+
     // TODO: Pass this in using <R: RngCore + CryptoRng>
     let rng = &mut OsRng;
     let state0 = State0::new(
@@ -80,13 +121,11 @@ where
         refund_address,
     );
 
+    info!("Commencing handshake");
+
     swarm.send_message0(alice.clone(), state0.next_message(rng));
     let state1 = match swarm.next().await {
-        OutEvent::Message0(msg) => {
-            // TODO: Verify the response message before calling receive() and handle any
-            // error gracefully.
-            state0.receive(&wallet, msg).await?
-        }
+        OutEvent::Message0(msg) => state0.receive(bitcoin_wallet.as_ref(), msg).await?,
         other => panic!("unexpected event: {:?}", other),
     };
 
@@ -100,10 +139,65 @@ where
 
     swarm.send_message2(alice.clone(), state2.next_message());
 
-    info!("Handshake complete, we now have State2 for Bob.");
+    info!("Handshake complete");
 
-    thread::park();
-    Ok(())
+    let network = Arc::new(Mutex::new(Network(swarm)));
+
+    let mut action_generator = action_generator(
+        network.clone(),
+        monero_wallet.clone(),
+        bitcoin_wallet.clone(),
+        state2,
+        TX_LOCK_MINE_TIMEOUT,
+    );
+
+    loop {
+        let state = action_generator.async_resume().await;
+
+        info!("Resumed execution of generator, got: {:?}", state);
+
+        match state {
+            GeneratorState::Yielded(bob::Action::LockBtc(tx_lock)) => {
+                let signed_tx_lock = bitcoin_wallet.sign_tx_lock(tx_lock).await?;
+                let _ = bitcoin_wallet
+                    .broadcast_signed_transaction(signed_tx_lock)
+                    .await?;
+            }
+            GeneratorState::Yielded(bob::Action::SendBtcRedeemEncsig(tx_redeem_encsig)) => {
+                let mut guard = network.as_ref().lock().await;
+                guard.0.send_message3(alice.clone(), tx_redeem_encsig);
+                info!("Sent Bitcoin redeem encsig");
+
+                // TODO: Does Bob need to wait for Alice to send an empty response, or can we
+                // just continue?
+                match guard.0.next().shared().await {
+                    OutEvent::Message3 => {
+                        debug!("Got Message3 empty response");
+                    }
+                    other => panic!("unexpected event: {:?}", other),
+                };
+            }
+            GeneratorState::Yielded(bob::Action::CreateXmrWalletForOutput {
+                spend_key,
+                view_key,
+            }) => {
+                monero_wallet
+                    .create_and_load_wallet_for_output(spend_key, view_key)
+                    .await?;
+            }
+            GeneratorState::Yielded(bob::Action::CancelBtc(tx_cancel)) => {
+                let _ = bitcoin_wallet
+                    .broadcast_signed_transaction(tx_cancel)
+                    .await?;
+            }
+            GeneratorState::Yielded(bob::Action::RefundBtc(tx_refund)) => {
+                let _ = bitcoin_wallet
+                    .broadcast_signed_transaction(tx_refund)
+                    .await?;
+            }
+            GeneratorState::Complete(()) => return Ok(()),
+        }
+    }
 }
 
 pub type Swarm = libp2p::Swarm<Bob>;
@@ -137,12 +231,14 @@ fn new_swarm() -> Result<Swarm> {
 }
 
 #[allow(clippy::large_enum_variant)]
-#[derive(Debug)]
+#[derive(Debug, Clone)]
 pub enum OutEvent {
     ConnectionEstablished(PeerId),
     Amounts(SwapAmounts),
     Message0(alice::Message0),
     Message1(alice::Message1),
+    Message2(alice::Message2),
+    Message3,
 }
 
 impl From<peer_tracker::OutEvent> for OutEvent {
@@ -179,9 +275,19 @@ impl From<message1::OutEvent> for OutEvent {
     }
 }
 
-impl From<Never> for OutEvent {
-    fn from(_: Never) -> Self {
-        panic!("this never happens")
+impl From<message2::OutEvent> for OutEvent {
+    fn from(event: message2::OutEvent) -> Self {
+        match event {
+            message2::OutEvent::Msg(msg) => OutEvent::Message2(msg),
+        }
+    }
+}
+
+impl From<message3::OutEvent> for OutEvent {
+    fn from(event: message3::OutEvent) -> Self {
+        match event {
+            message3::OutEvent::Msg => OutEvent::Message3,
+        }
     }
 }
 
@@ -195,6 +301,7 @@ pub struct Bob {
     message0: Message0,
     message1: Message1,
     message2: Message2,
+    message3: Message3,
     #[behaviour(ignore)]
     identity: Keypair,
 }
@@ -212,22 +319,32 @@ impl Bob {
     pub fn request_amounts(&mut self, alice: PeerId, btc: u64) {
         let btc = ::bitcoin::Amount::from_sat(btc);
         let _id = self.amounts.request_amounts(alice.clone(), btc);
-        debug!("Requesting amounts from: {}", alice);
+        info!("Requesting amounts from: {}", alice);
     }
 
     /// Sends Bob's first message to Alice.
     pub fn send_message0(&mut self, alice: PeerId, msg: bob::Message0) {
-        self.message0.send(alice, msg)
+        self.message0.send(alice, msg);
+        debug!("Sent Message0");
     }
 
     /// Sends Bob's second message to Alice.
     pub fn send_message1(&mut self, alice: PeerId, msg: bob::Message1) {
-        self.message1.send(alice, msg)
+        self.message1.send(alice, msg);
+        debug!("Sent Message1");
     }
 
     /// Sends Bob's third message to Alice.
     pub fn send_message2(&mut self, alice: PeerId, msg: bob::Message2) {
-        self.message2.send(alice, msg)
+        self.message2.send(alice, msg);
+        debug!("Sent Message2");
+    }
+
+    /// Sends Bob's fourth message to Alice.
+    pub fn send_message3(&mut self, alice: PeerId, tx_redeem_encsig: EncryptedSignature) {
+        let msg = bob::Message3 { tx_redeem_encsig };
+        self.message3.send(alice, msg);
+        debug!("Sent Message3");
     }
 
     /// Returns Alice's peer id if we are connected.
@@ -246,6 +363,7 @@ impl Default for Bob {
             message0: Message0::default(),
             message1: Message1::default(),
             message2: Message2::default(),
+            message3: Message3::default(),
             identity,
         }
     }
diff --git a/swap/src/bob/amounts.rs b/swap/src/bob/amounts.rs
index 46c71920..7428ad30 100644
--- a/swap/src/bob/amounts.rs
+++ b/swap/src/bob/amounts.rs
@@ -15,7 +15,7 @@ use std::{
 use tracing::{debug, error};
 
 use crate::{
-    network::request_response::{AliceToBob, BobToAlice, Codec, Protocol, TIMEOUT},
+    network::request_response::{AliceToBob, AmountsProtocol, BobToAlice, Codec, TIMEOUT},
     SwapAmounts,
 };
 
@@ -29,7 +29,7 @@ pub enum OutEvent {
 #[behaviour(out_event = "OutEvent", poll_method = "poll")]
 #[allow(missing_debug_implementations)]
 pub struct Amounts {
-    rr: RequestResponse<Codec>,
+    rr: RequestResponse<Codec<AmountsProtocol>>,
     #[behaviour(ignore)]
     events: VecDeque<OutEvent>,
 }
@@ -46,7 +46,7 @@ impl Amounts {
         &mut self,
         _: &mut Context<'_>,
         _: &mut impl PollParameters,
-    ) -> Poll<NetworkBehaviourAction<RequestProtocol<Codec>, OutEvent>> {
+    ) -> Poll<NetworkBehaviourAction<RequestProtocol<Codec<AmountsProtocol>>, OutEvent>> {
         if let Some(event) = self.events.pop_front() {
             return Poll::Ready(NetworkBehaviourAction::GenerateEvent(event));
         }
@@ -65,7 +65,7 @@ impl Default for Amounts {
         Self {
             rr: RequestResponse::new(
                 Codec::default(),
-                vec![(Protocol, ProtocolSupport::Full)],
+                vec![(AmountsProtocol, ProtocolSupport::Full)],
                 config,
             ),
             events: Default::default(),
@@ -83,10 +83,12 @@ impl NetworkBehaviourEventProcess<RequestResponseEvent<BobToAlice, AliceToBob>>
             RequestResponseEvent::Message {
                 message: RequestResponseMessage::Response { response, .. },
                 ..
-            } => match response {
-                AliceToBob::Amounts(p) => self.events.push_back(OutEvent::Amounts(p)),
-                other => debug!("got response: {:?}", other),
-            },
+            } => {
+                if let AliceToBob::Amounts(p) = response {
+                    debug!("Received amounts response");
+                    self.events.push_back(OutEvent::Amounts(p));
+                }
+            }
             RequestResponseEvent::InboundFailure { error, .. } => {
                 error!("Inbound failure: {:?}", error);
             }
diff --git a/swap/src/bob/message0.rs b/swap/src/bob/message0.rs
index 268244a1..89504fbb 100644
--- a/swap/src/bob/message0.rs
+++ b/swap/src/bob/message0.rs
@@ -13,7 +13,7 @@ use std::{
 };
 use tracing::{debug, error};
 
-use crate::network::request_response::{AliceToBob, BobToAlice, Codec, Protocol, TIMEOUT};
+use crate::network::request_response::{AliceToBob, BobToAlice, Codec, Message0Protocol, TIMEOUT};
 use xmr_btc::{alice, bob};
 
 #[derive(Debug)]
@@ -26,7 +26,7 @@ pub enum OutEvent {
 #[behaviour(out_event = "OutEvent", poll_method = "poll")]
 #[allow(missing_debug_implementations)]
 pub struct Message0 {
-    rr: RequestResponse<Codec>,
+    rr: RequestResponse<Codec<Message0Protocol>>,
     #[behaviour(ignore)]
     events: VecDeque<OutEvent>,
 }
@@ -41,7 +41,7 @@ impl Message0 {
         &mut self,
         _: &mut Context<'_>,
         _: &mut impl PollParameters,
-    ) -> Poll<NetworkBehaviourAction<RequestProtocol<Codec>, OutEvent>> {
+    ) -> Poll<NetworkBehaviourAction<RequestProtocol<Codec<Message0Protocol>>, OutEvent>> {
         if let Some(event) = self.events.pop_front() {
             return Poll::Ready(NetworkBehaviourAction::GenerateEvent(event));
         }
@@ -59,7 +59,7 @@ impl Default for Message0 {
         Self {
             rr: RequestResponse::new(
                 Codec::default(),
-                vec![(Protocol, ProtocolSupport::Full)],
+                vec![(Message0Protocol, ProtocolSupport::Full)],
                 config,
             ),
             events: Default::default(),
@@ -77,10 +77,12 @@ impl NetworkBehaviourEventProcess<RequestResponseEvent<BobToAlice, AliceToBob>>
             RequestResponseEvent::Message {
                 message: RequestResponseMessage::Response { response, .. },
                 ..
-            } => match response {
-                AliceToBob::Message0(msg) => self.events.push_back(OutEvent::Msg(msg)),
-                other => debug!("got response: {:?}", other),
-            },
+            } => {
+                if let AliceToBob::Message0(msg) = response {
+                    debug!("Received Message0");
+                    self.events.push_back(OutEvent::Msg(msg));
+                }
+            }
             RequestResponseEvent::InboundFailure { error, .. } => {
                 error!("Inbound failure: {:?}", error);
             }
diff --git a/swap/src/bob/message1.rs b/swap/src/bob/message1.rs
index 9e85ce3d..32fd6c52 100644
--- a/swap/src/bob/message1.rs
+++ b/swap/src/bob/message1.rs
@@ -13,7 +13,7 @@ use std::{
 };
 use tracing::{debug, error};
 
-use crate::network::request_response::{AliceToBob, BobToAlice, Codec, Protocol, TIMEOUT};
+use crate::network::request_response::{AliceToBob, BobToAlice, Codec, Message1Protocol, TIMEOUT};
 use xmr_btc::{alice, bob};
 
 #[derive(Debug)]
@@ -26,7 +26,7 @@ pub enum OutEvent {
 #[behaviour(out_event = "OutEvent", poll_method = "poll")]
 #[allow(missing_debug_implementations)]
 pub struct Message1 {
-    rr: RequestResponse<Codec>,
+    rr: RequestResponse<Codec<Message1Protocol>>,
     #[behaviour(ignore)]
     events: VecDeque<OutEvent>,
 }
@@ -41,7 +41,7 @@ impl Message1 {
         &mut self,
         _: &mut Context<'_>,
         _: &mut impl PollParameters,
-    ) -> Poll<NetworkBehaviourAction<RequestProtocol<Codec>, OutEvent>> {
+    ) -> Poll<NetworkBehaviourAction<RequestProtocol<Codec<Message1Protocol>>, OutEvent>> {
         if let Some(event) = self.events.pop_front() {
             return Poll::Ready(NetworkBehaviourAction::GenerateEvent(event));
         }
@@ -59,7 +59,7 @@ impl Default for Message1 {
         Self {
             rr: RequestResponse::new(
                 Codec::default(),
-                vec![(Protocol, ProtocolSupport::Full)],
+                vec![(Message1Protocol, ProtocolSupport::Full)],
                 config,
             ),
             events: Default::default(),
@@ -77,10 +77,12 @@ impl NetworkBehaviourEventProcess<RequestResponseEvent<BobToAlice, AliceToBob>>
             RequestResponseEvent::Message {
                 message: RequestResponseMessage::Response { response, .. },
                 ..
-            } => match response {
-                AliceToBob::Message1(msg) => self.events.push_back(OutEvent::Msg(msg)),
-                other => debug!("got response: {:?}", other),
-            },
+            } => {
+                if let AliceToBob::Message1(msg) = response {
+                    debug!("Received Message1");
+                    self.events.push_back(OutEvent::Msg(msg));
+                }
+            }
             RequestResponseEvent::InboundFailure { error, .. } => {
                 error!("Inbound failure: {:?}", error);
             }
diff --git a/swap/src/bob/message2.rs b/swap/src/bob/message2.rs
index e8fa295b..17425227 100644
--- a/swap/src/bob/message2.rs
+++ b/swap/src/bob/message2.rs
@@ -7,23 +7,28 @@ use libp2p::{
     NetworkBehaviour, PeerId,
 };
 use std::{
+    collections::VecDeque,
     task::{Context, Poll},
     time::Duration,
 };
 use tracing::{debug, error};
 
-use crate::{
-    network::request_response::{AliceToBob, BobToAlice, Codec, Protocol, TIMEOUT},
-    Never,
-};
-use xmr_btc::bob;
+use crate::network::request_response::{AliceToBob, BobToAlice, Codec, Message2Protocol, TIMEOUT};
+use xmr_btc::{alice, bob};
+
+#[derive(Debug)]
+pub enum OutEvent {
+    Msg(alice::Message2),
+}
 
 /// A `NetworkBehaviour` that represents sending message 2 to Alice.
 #[derive(NetworkBehaviour)]
-#[behaviour(out_event = "Never", poll_method = "poll")]
+#[behaviour(out_event = "OutEvent", poll_method = "poll")]
 #[allow(missing_debug_implementations)]
 pub struct Message2 {
-    rr: RequestResponse<Codec>,
+    rr: RequestResponse<Codec<Message2Protocol>>,
+    #[behaviour(ignore)]
+    events: VecDeque<OutEvent>,
 }
 
 impl Message2 {
@@ -32,13 +37,15 @@ impl Message2 {
         let _id = self.rr.send_request(&alice, msg);
     }
 
-    // TODO: Do we need a custom implementation if we are not bubbling any out
-    // events?
     fn poll(
         &mut self,
         _: &mut Context<'_>,
         _: &mut impl PollParameters,
-    ) -> Poll<NetworkBehaviourAction<RequestProtocol<Codec>, Never>> {
+    ) -> Poll<NetworkBehaviourAction<RequestProtocol<Codec<Message2Protocol>>, OutEvent>> {
+        if let Some(event) = self.events.pop_front() {
+            return Poll::Ready(NetworkBehaviourAction::GenerateEvent(event));
+        }
+
         Poll::Pending
     }
 }
@@ -52,9 +59,10 @@ impl Default for Message2 {
         Self {
             rr: RequestResponse::new(
                 Codec::default(),
-                vec![(Protocol, ProtocolSupport::Full)],
+                vec![(Message2Protocol, ProtocolSupport::Full)],
                 config,
             ),
+            events: VecDeque::default(),
         }
     }
 }
@@ -69,10 +77,12 @@ impl NetworkBehaviourEventProcess<RequestResponseEvent<BobToAlice, AliceToBob>>
             RequestResponseEvent::Message {
                 message: RequestResponseMessage::Response { response, .. },
                 ..
-            } => match response {
-                AliceToBob::EmptyResponse => debug!("Alice correctly responded to message 2"),
-                other => debug!("unexpected response: {:?}", other),
-            },
+            } => {
+                if let AliceToBob::Message2(msg) = response {
+                    debug!("Received Message2");
+                    self.events.push_back(OutEvent::Msg(msg));
+                }
+            }
             RequestResponseEvent::InboundFailure { error, .. } => {
                 error!("Inbound failure: {:?}", error);
             }
diff --git a/swap/src/bob/message3.rs b/swap/src/bob/message3.rs
new file mode 100644
index 00000000..20873bfa
--- /dev/null
+++ b/swap/src/bob/message3.rs
@@ -0,0 +1,93 @@
+use libp2p::{
+    request_response::{
+        handler::RequestProtocol, ProtocolSupport, RequestResponse, RequestResponseConfig,
+        RequestResponseEvent, RequestResponseMessage,
+    },
+    swarm::{NetworkBehaviourAction, NetworkBehaviourEventProcess, PollParameters},
+    NetworkBehaviour, PeerId,
+};
+use std::{
+    collections::VecDeque,
+    task::{Context, Poll},
+    time::Duration,
+};
+use tracing::error;
+
+use crate::network::request_response::{AliceToBob, BobToAlice, Codec, Message3Protocol, TIMEOUT};
+use xmr_btc::bob;
+
+#[derive(Debug)]
+pub enum OutEvent {
+    Msg,
+}
+
+/// A `NetworkBehaviour` that represents sending message 3 to Alice.
+#[derive(NetworkBehaviour)]
+#[behaviour(out_event = "OutEvent", poll_method = "poll")]
+#[allow(missing_debug_implementations)]
+pub struct Message3 {
+    rr: RequestResponse<Codec<Message3Protocol>>,
+    #[behaviour(ignore)]
+    events: VecDeque<OutEvent>,
+}
+
+impl Message3 {
+    pub fn send(&mut self, alice: PeerId, msg: bob::Message3) {
+        let msg = BobToAlice::Message3(msg);
+        let _id = self.rr.send_request(&alice, msg);
+    }
+
+    fn poll(
+        &mut self,
+        _: &mut Context<'_>,
+        _: &mut impl PollParameters,
+    ) -> Poll<NetworkBehaviourAction<RequestProtocol<Codec<Message3Protocol>>, OutEvent>> {
+        if let Some(event) = self.events.pop_front() {
+            return Poll::Ready(NetworkBehaviourAction::GenerateEvent(event));
+        }
+
+        Poll::Pending
+    }
+}
+
+impl Default for Message3 {
+    fn default() -> Self {
+        let timeout = Duration::from_secs(TIMEOUT);
+        let mut config = RequestResponseConfig::default();
+        config.set_request_timeout(timeout);
+
+        Self {
+            rr: RequestResponse::new(
+                Codec::default(),
+                vec![(Message3Protocol, ProtocolSupport::Full)],
+                config,
+            ),
+            events: Default::default(),
+        }
+    }
+}
+
+impl NetworkBehaviourEventProcess<RequestResponseEvent<BobToAlice, AliceToBob>> for Message3 {
+    fn inject_event(&mut self, event: RequestResponseEvent<BobToAlice, AliceToBob>) {
+        match event {
+            RequestResponseEvent::Message {
+                message: RequestResponseMessage::Request { .. },
+                ..
+            } => panic!("Bob should never get a request from Alice"),
+            RequestResponseEvent::Message {
+                message: RequestResponseMessage::Response { response, .. },
+                ..
+            } => {
+                if let AliceToBob::Message3 = response {
+                    self.events.push_back(OutEvent::Msg);
+                }
+            }
+            RequestResponseEvent::InboundFailure { error, .. } => {
+                error!("Inbound failure: {:?}", error);
+            }
+            RequestResponseEvent::OutboundFailure { error, .. } => {
+                error!("Outbound failure: {:?}", error);
+            }
+        }
+    }
+}
diff --git a/swap/src/lib.rs b/swap/src/lib.rs
index 7a85eeed..0d682e77 100644
--- a/swap/src/lib.rs
+++ b/swap/src/lib.rs
@@ -4,15 +4,14 @@ use std::fmt::{self, Display};
 pub mod alice;
 pub mod bitcoin;
 pub mod bob;
+pub mod monero;
 pub mod network;
 pub mod storage;
 #[cfg(feature = "tor")]
 pub mod tor;
 
-pub const ONE_BTC: u64 = 100_000_000;
-
 const REFUND_TIMELOCK: u32 = 10; // Relative timelock, this is number of blocks. TODO: What should it be?
-const PUNISH_TIMELOCK: u32 = 20; // FIXME: What should this be?
+const PUNISH_TIMELOCK: u32 = 10; // FIXME: What should this be?
 
 pub type Never = std::convert::Infallible;
 
diff --git a/swap/src/main.rs b/swap/src/main.rs
index e981dccd..c2b0b4b6 100644
--- a/swap/src/main.rs
+++ b/swap/src/main.rs
@@ -13,28 +13,28 @@
 #![forbid(unsafe_code)]
 
 use anyhow::{bail, Context, Result};
-use cli::Options;
 use futures::{channel::mpsc, StreamExt};
 use libp2p::Multiaddr;
 use log::LevelFilter;
-use std::{io, io::Write, process};
+use std::{io, io::Write, process, sync::Arc};
 use structopt::StructOpt;
-use swap::{alice, bitcoin::Wallet, bob, Cmd, Rsp, SwapAmounts};
 use tracing::info;
 use url::Url;
-use xmr_btc::bitcoin::{BroadcastSignedTransaction, BuildTxLockPsbt, SignTxLock};
 
 mod cli;
 mod trace;
 
+use cli::Options;
+use swap::{alice, bitcoin, bob, monero, Cmd, Rsp, SwapAmounts};
+
 // TODO: Add root seed file instead of generating new seed each run.
-// TODO: Remove all instances of the todo! macro
 
 // TODO: Add a config file with these in it.
 // Alice's address and port until we have a config file.
 pub const PORT: u16 = 9876; // Arbitrarily chosen.
 pub const ADDR: &str = "127.0.0.1";
 pub const BITCOIND_JSON_RPC_URL: &str = "http://127.0.0.1:8332";
+pub const MONERO_WALLET_RPC_PORT: u16 = 18083;
 
 #[cfg(feature = "tor")]
 pub const TOR_PORT: u16 = PORT + 1;
@@ -70,45 +70,37 @@ async fn main() -> Result<()> {
         }
 
         let url = Url::parse(BITCOIND_JSON_RPC_URL).expect("failed to parse url");
-        let bitcoin_wallet = Wallet::new("alice", &url)
+        let bitcoin_wallet = bitcoin::Wallet::new("alice", &url)
             .await
             .expect("failed to create bitcoin wallet");
+        let bitcoin_wallet = Arc::new(bitcoin_wallet);
 
-        let redeem = bitcoin_wallet
-            .new_address()
-            .await
-            .expect("failed to get new redeem address");
-        let punish = bitcoin_wallet
-            .new_address()
-            .await
-            .expect("failed to get new punish address");
+        let monero_wallet = Arc::new(monero::Wallet::localhost(MONERO_WALLET_RPC_PORT));
 
-        swap_as_alice(alice.clone(), redeem, punish).await?;
+        swap_as_alice(bitcoin_wallet, monero_wallet, alice.clone()).await?;
     } else {
         info!("running swap node as Bob ...");
 
-        let alice_address = match opt.alice_address {
+        let alice = match opt.alice_address {
             Some(addr) => addr,
             None => bail!("Address required to dial"),
         };
-        let alice_address = multiaddr(&alice_address)?;
+        let alice = multiaddr(&alice)?;
 
         let url = Url::parse(BITCOIND_JSON_RPC_URL).expect("failed to parse url");
-        let bitcoin_wallet = Wallet::new("bob", &url)
+        let bitcoin_wallet = bitcoin::Wallet::new("bob", &url)
             .await
             .expect("failed to create bitcoin wallet");
+        let bitcoin_wallet = Arc::new(bitcoin_wallet);
 
-        let refund = bitcoin_wallet
-            .new_address()
-            .await
-            .expect("failed to get new address");
+        let monero_wallet = Arc::new(monero::Wallet::localhost(MONERO_WALLET_RPC_PORT));
 
         match (opt.piconeros, opt.satoshis) {
             (Some(_), Some(_)) => bail!("Please supply only a single amount to swap"),
             (None, None) => bail!("Please supply an amount to swap"),
             (Some(_picos), _) => todo!("support starting with picos"),
             (None, Some(sats)) => {
-                swap_as_bob(sats, alice_address, refund, bitcoin_wallet).await?;
+                swap_as_bob(bitcoin_wallet, monero_wallet, sats, alice).await?;
             }
         };
     }
@@ -135,32 +127,36 @@ async fn create_tor_service(
 }
 
 async fn swap_as_alice(
+    bitcoin_wallet: Arc<swap::bitcoin::Wallet>,
+    monero_wallet: Arc<swap::monero::Wallet>,
     addr: Multiaddr,
-    redeem: bitcoin::Address,
-    punish: bitcoin::Address,
 ) -> Result<()> {
     #[cfg(not(feature = "tor"))]
     {
-        alice::swap(addr, None, redeem, punish).await
+        alice::swap(bitcoin_wallet, monero_wallet, addr, None).await
     }
     #[cfg(feature = "tor")]
     {
-        alice::swap(addr, Some(PORT), redeem, punish).await
+        alice::swap(bitcoin_wallet, monero_wallet, addr, Some(PORT)).await
     }
 }
 
-async fn swap_as_bob<W>(
+async fn swap_as_bob(
+    bitcoin_wallet: Arc<swap::bitcoin::Wallet>,
+    monero_wallet: Arc<swap::monero::Wallet>,
     sats: u64,
     alice: Multiaddr,
-    refund: bitcoin::Address,
-    wallet: W,
-) -> Result<()>
-where
-    W: BuildTxLockPsbt + SignTxLock + BroadcastSignedTransaction + Send + Sync + 'static,
-{
+) -> Result<()> {
     let (cmd_tx, mut cmd_rx) = mpsc::channel(1);
     let (mut rsp_tx, rsp_rx) = mpsc::channel(1);
-    tokio::spawn(bob::swap(sats, alice, cmd_tx, rsp_rx, refund, wallet));
+    tokio::spawn(bob::swap(
+        bitcoin_wallet,
+        monero_wallet,
+        sats,
+        alice,
+        cmd_tx,
+        rsp_rx,
+    ));
 
     loop {
         let read = cmd_rx.next().await;
diff --git a/swap/src/monero.rs b/swap/src/monero.rs
new file mode 100644
index 00000000..0d215738
--- /dev/null
+++ b/swap/src/monero.rs
@@ -0,0 +1,135 @@
+use anyhow::Result;
+use async_trait::async_trait;
+use backoff::{backoff::Constant as ConstantBackoff, future::FutureOperation as _};
+use monero::{Address, Network, PrivateKey};
+use monero_harness::rpc::wallet;
+use std::{str::FromStr, time::Duration};
+
+pub use xmr_btc::monero::{
+    Amount, CreateWalletForOutput, InsufficientFunds, PrivateViewKey, PublicKey, PublicViewKey,
+    Transfer, TransferProof, TxHash, WatchForTransfer, *,
+};
+
+pub struct Wallet(pub wallet::Client);
+
+impl Wallet {
+    pub fn localhost(port: u16) -> Self {
+        Self(wallet::Client::localhost(port))
+    }
+
+    /// Get the balance of the primary account.
+    pub async fn get_balance(&self) -> Result<Amount> {
+        let amount = self.0.get_balance(0).await?;
+
+        Ok(Amount::from_piconero(amount))
+    }
+}
+
+#[async_trait]
+impl Transfer for Wallet {
+    async fn transfer(
+        &self,
+        public_spend_key: PublicKey,
+        public_view_key: PublicViewKey,
+        amount: Amount,
+    ) -> Result<(TransferProof, Amount)> {
+        let destination_address =
+            Address::standard(Network::Mainnet, public_spend_key, public_view_key.into());
+
+        let res = self
+            .0
+            .transfer(0, amount.as_piconero(), &destination_address.to_string())
+            .await?;
+
+        let tx_hash = TxHash(res.tx_hash);
+        let tx_key = PrivateKey::from_str(&res.tx_key)?;
+
+        let fee = Amount::from_piconero(res.fee);
+
+        Ok((TransferProof::new(tx_hash, tx_key), fee))
+    }
+}
+
+#[async_trait]
+impl CreateWalletForOutput for Wallet {
+    async fn create_and_load_wallet_for_output(
+        &self,
+        private_spend_key: PrivateKey,
+        private_view_key: PrivateViewKey,
+    ) -> Result<()> {
+        let public_spend_key = PublicKey::from_private_key(&private_spend_key);
+        let public_view_key = PublicKey::from_private_key(&private_view_key.into());
+
+        let address = Address::standard(Network::Mainnet, public_spend_key, public_view_key);
+
+        let _ = self
+            .0
+            .generate_from_keys(
+                &address.to_string(),
+                &private_spend_key.to_string(),
+                &PrivateKey::from(private_view_key).to_string(),
+            )
+            .await?;
+
+        Ok(())
+    }
+}
+
+// TODO: For retry, use `backoff::ExponentialBackoff` in production as opposed
+// to `ConstantBackoff`.
+
+#[async_trait]
+impl WatchForTransfer for Wallet {
+    async fn watch_for_transfer(
+        &self,
+        public_spend_key: PublicKey,
+        public_view_key: PublicViewKey,
+        transfer_proof: TransferProof,
+        expected_amount: Amount,
+        expected_confirmations: u32,
+    ) -> Result<(), InsufficientFunds> {
+        enum Error {
+            TxNotFound,
+            InsufficientConfirmations,
+            InsufficientFunds { expected: Amount, actual: Amount },
+        }
+
+        let address = Address::standard(Network::Mainnet, public_spend_key, public_view_key.into());
+
+        let res = (|| async {
+            // NOTE: Currently, this is conflating IO errors with the transaction not being
+            // in the blockchain yet, or not having enough confirmations on it. All these
+            // errors warrant a retry, but the strategy should probably differ per case
+            let proof = self
+                .0
+                .check_tx_key(
+                    &String::from(transfer_proof.tx_hash()),
+                    &transfer_proof.tx_key().to_string(),
+                    &address.to_string(),
+                )
+                .await
+                .map_err(|_| backoff::Error::Transient(Error::TxNotFound))?;
+
+            if proof.received != expected_amount.as_piconero() {
+                return Err(backoff::Error::Permanent(Error::InsufficientFunds {
+                    expected: expected_amount,
+                    actual: Amount::from_piconero(proof.received),
+                }));
+            }
+
+            if proof.confirmations < expected_confirmations {
+                return Err(backoff::Error::Transient(Error::InsufficientConfirmations));
+            }
+
+            Ok(proof)
+        })
+        .retry(ConstantBackoff::new(Duration::from_secs(1)))
+        .await;
+
+        if let Err(Error::InsufficientFunds { expected, actual }) = res {
+            return Err(InsufficientFunds { expected, actual });
+        };
+
+        Ok(())
+    }
+}
diff --git a/swap/src/network/request_response.rs b/swap/src/network/request_response.rs
index f8d44deb..a042debc 100644
--- a/swap/src/network/request_response.rs
+++ b/swap/src/network/request_response.rs
@@ -5,7 +5,8 @@ use libp2p::{
     request_response::{ProtocolName, RequestResponseCodec},
 };
 use serde::{Deserialize, Serialize};
-use std::{fmt::Debug, io};
+use std::{fmt::Debug, io, marker::PhantomData};
+use tracing::debug;
 
 use crate::SwapAmounts;
 use xmr_btc::{alice, bob, monero};
@@ -13,6 +14,9 @@ use xmr_btc::{alice, bob, monero};
 /// Time to wait for a response back once we send a request.
 pub const TIMEOUT: u64 = 3600; // One hour.
 
+/// Message receive buffer.
+const BUF_SIZE: usize = 1024 * 1024;
+
 // TODO: Think about whether there is a better way to do this, e.g., separate
 // Codec for each Message and a macro that implements them.
 
@@ -26,6 +30,7 @@ pub enum BobToAlice {
     Message0(bob::Message0),
     Message1(bob::Message1),
     Message2(bob::Message2),
+    Message3(bob::Message3),
 }
 
 /// Messages Alice sends to Bob.
@@ -35,25 +40,66 @@ pub enum AliceToBob {
     Amounts(SwapAmounts),
     Message0(alice::Message0),
     Message1(alice::Message1),
-    EmptyResponse, // This is sent back as response to Message2 from Bob.
     Message2(alice::Message2),
+    Message3, // empty response
 }
 
 #[derive(Debug, Clone, Copy, Default)]
-pub struct Protocol;
+pub struct AmountsProtocol;
 
-impl ProtocolName for Protocol {
+#[derive(Debug, Clone, Copy, Default)]
+pub struct Message0Protocol;
+
+#[derive(Debug, Clone, Copy, Default)]
+pub struct Message1Protocol;
+
+#[derive(Debug, Clone, Copy, Default)]
+pub struct Message2Protocol;
+
+#[derive(Debug, Clone, Copy, Default)]
+pub struct Message3Protocol;
+
+impl ProtocolName for AmountsProtocol {
     fn protocol_name(&self) -> &[u8] {
-        b"/xmr/btc/1.0.0"
+        b"/xmr/btc/amounts/1.0.0"
+    }
+}
+
+impl ProtocolName for Message0Protocol {
+    fn protocol_name(&self) -> &[u8] {
+        b"/xmr/btc/message0/1.0.0"
+    }
+}
+
+impl ProtocolName for Message1Protocol {
+    fn protocol_name(&self) -> &[u8] {
+        b"/xmr/btc/message1/1.0.0"
+    }
+}
+
+impl ProtocolName for Message2Protocol {
+    fn protocol_name(&self) -> &[u8] {
+        b"/xmr/btc/message2/1.0.0"
+    }
+}
+
+impl ProtocolName for Message3Protocol {
+    fn protocol_name(&self) -> &[u8] {
+        b"/xmr/btc/message3/1.0.0"
     }
 }
 
 #[derive(Clone, Copy, Debug, Default)]
-pub struct Codec;
+pub struct Codec<P> {
+    phantom: PhantomData<P>,
+}
 
 #[async_trait]
-impl RequestResponseCodec for Codec {
-    type Protocol = Protocol;
+impl<P> RequestResponseCodec for Codec<P>
+where
+    P: Send + Sync + Clone + ProtocolName,
+{
+    type Protocol = P;
     type Request = BobToAlice;
     type Response = AliceToBob;
 
@@ -61,11 +107,15 @@ impl RequestResponseCodec for Codec {
     where
         T: AsyncRead + Unpin + Send,
     {
-        let message = upgrade::read_one(io, 1024)
+        debug!("enter read_request");
+        let message = upgrade::read_one(io, BUF_SIZE)
             .await
             .map_err(|e| io::Error::new(io::ErrorKind::InvalidData, e))?;
-        let mut de = serde_json::Deserializer::from_slice(&message);
-        let msg = BobToAlice::deserialize(&mut de)?;
+        let mut de = serde_cbor::Deserializer::from_slice(&message);
+        let msg = BobToAlice::deserialize(&mut de).map_err(|e| {
+            tracing::debug!("serde read_request error: {:?}", e);
+            io::Error::new(io::ErrorKind::Other, e)
+        })?;
 
         Ok(msg)
     }
@@ -78,11 +128,15 @@ impl RequestResponseCodec for Codec {
     where
         T: AsyncRead + Unpin + Send,
     {
-        let message = upgrade::read_one(io, 1024)
+        debug!("enter read_response");
+        let message = upgrade::read_one(io, BUF_SIZE)
             .await
             .map_err(|e| io::Error::new(io::ErrorKind::InvalidData, e))?;
-        let mut de = serde_json::Deserializer::from_slice(&message);
-        let msg = AliceToBob::deserialize(&mut de)?;
+        let mut de = serde_cbor::Deserializer::from_slice(&message);
+        let msg = AliceToBob::deserialize(&mut de).map_err(|e| {
+            tracing::debug!("serde read_response error: {:?}", e);
+            io::Error::new(io::ErrorKind::InvalidData, e)
+        })?;
 
         Ok(msg)
     }
@@ -96,7 +150,9 @@ impl RequestResponseCodec for Codec {
     where
         T: AsyncWrite + Unpin + Send,
     {
-        let bytes = serde_json::to_vec(&req)?;
+        let bytes =
+            serde_cbor::to_vec(&req).map_err(|e| io::Error::new(io::ErrorKind::InvalidData, e))?;
+
         upgrade::write_one(io, &bytes).await?;
 
         Ok(())
@@ -111,7 +167,11 @@ impl RequestResponseCodec for Codec {
     where
         T: AsyncWrite + Unpin + Send,
     {
-        let bytes = serde_json::to_vec(&res)?;
+        debug!("enter write_response");
+        let bytes = serde_cbor::to_vec(&res).map_err(|e| {
+            tracing::debug!("serde write_reponse error: {:?}", e);
+            io::Error::new(io::ErrorKind::InvalidData, e)
+        })?;
         upgrade::write_one(io, &bytes).await?;
 
         Ok(())
diff --git a/swap/tests/e2e.rs b/swap/tests/e2e.rs
new file mode 100644
index 00000000..09ba8fb0
--- /dev/null
+++ b/swap/tests/e2e.rs
@@ -0,0 +1,100 @@
+#[cfg(not(feature = "tor"))]
+mod e2e_test {
+    use bitcoin_harness::Bitcoind;
+    use futures::{channel::mpsc, future::try_join};
+    use libp2p::Multiaddr;
+    use monero_harness::Monero;
+    use std::sync::Arc;
+    use swap::{alice, bob};
+    use testcontainers::clients::Cli;
+    use tracing_subscriber::util::SubscriberInitExt;
+
+    #[tokio::test]
+    async fn swap() {
+        let _guard = tracing_subscriber::fmt()
+        .with_env_filter(
+            "swap=debug,xmr_btc=debug,hyper=off,reqwest=off,monero_harness=info,testcontainers=info,libp2p=debug",
+        )
+        .with_ansi(false)
+        .set_default();
+
+        let alice_multiaddr: Multiaddr = "/ip4/127.0.0.1/tcp/9876"
+            .parse()
+            .expect("failed to parse Alice's address");
+
+        let cli = Cli::default();
+        let bitcoind = Bitcoind::new(&cli, "0.19.1").unwrap();
+        let _ = bitcoind.init(5).await;
+
+        let btc = bitcoin::Amount::from_sat(1_000_000);
+        let btc_alice = bitcoin::Amount::ZERO;
+        let btc_bob = btc * 10;
+
+        // this xmr value matches the logic of alice::calculate_amounts i.e. btc *
+        // 10_000 * 100
+        let xmr = 1_000_000_000_000;
+        let xmr_alice = xmr * 10;
+        let xmr_bob = 0;
+
+        let alice_btc_wallet = Arc::new(
+            swap::bitcoin::Wallet::new("alice", &bitcoind.node_url)
+                .await
+                .unwrap(),
+        );
+        let bob_btc_wallet = Arc::new(
+            swap::bitcoin::Wallet::new("bob", &bitcoind.node_url)
+                .await
+                .unwrap(),
+        );
+        bitcoind
+            .mint(bob_btc_wallet.0.new_address().await.unwrap(), btc_bob)
+            .await
+            .unwrap();
+
+        let (monero, _container) = Monero::new(&cli).unwrap();
+        monero.init(xmr_alice, xmr_bob).await.unwrap();
+
+        let alice_xmr_wallet = Arc::new(swap::monero::Wallet(monero.alice_wallet_rpc_client()));
+        let bob_xmr_wallet = Arc::new(swap::monero::Wallet(monero.bob_wallet_rpc_client()));
+
+        let alice_swap = alice::swap(
+            alice_btc_wallet.clone(),
+            alice_xmr_wallet.clone(),
+            alice_multiaddr.clone(),
+            None,
+        );
+
+        let (cmd_tx, mut _cmd_rx) = mpsc::channel(1);
+        let (mut rsp_tx, rsp_rx) = mpsc::channel(1);
+        let bob_swap = bob::swap(
+            bob_btc_wallet.clone(),
+            bob_xmr_wallet.clone(),
+            btc.as_sat(),
+            alice_multiaddr,
+            cmd_tx,
+            rsp_rx,
+        );
+
+        // automate the verification step by accepting any amounts sent over by Alice
+        rsp_tx.try_send(swap::Rsp::VerifiedAmounts).unwrap();
+
+        try_join(alice_swap, bob_swap).await.unwrap();
+
+        let btc_alice_final = alice_btc_wallet.as_ref().balance().await.unwrap();
+        let btc_bob_final = bob_btc_wallet.as_ref().balance().await.unwrap();
+
+        let xmr_alice_final = alice_xmr_wallet.as_ref().get_balance().await.unwrap();
+
+        monero.wait_for_bob_wallet_block_height().await.unwrap();
+        let xmr_bob_final = bob_xmr_wallet.as_ref().get_balance().await.unwrap();
+
+        assert_eq!(
+            btc_alice_final,
+            btc_alice + btc - bitcoin::Amount::from_sat(xmr_btc::bitcoin::TX_FEE)
+        );
+        assert!(btc_bob_final <= btc_bob - btc);
+
+        assert!(xmr_alice_final.as_piconero() <= xmr_alice - xmr);
+        assert_eq!(xmr_bob_final.as_piconero(), xmr_bob + xmr);
+    }
+}
diff --git a/xmr-btc/Cargo.toml b/xmr-btc/Cargo.toml
index 22dfc30b..7d13407d 100644
--- a/xmr-btc/Cargo.toml
+++ b/xmr-btc/Cargo.toml
@@ -28,7 +28,7 @@ tracing = "0.1"
 [dev-dependencies]
 backoff = { version = "0.2", features = ["tokio"] }
 base64 = "0.12"
-bitcoin-harness = { git = "https://github.com/coblox/bitcoin-harness-rs", rev = "7ff30a559ab57cc3aa71189e71433ef6b2a6c3a2" }
+bitcoin-harness = { git = "https://github.com/coblox/bitcoin-harness-rs", rev = "f1bbe6a4540d0741f1f4f22577cfeeadbfd7aaaf" }
 futures = "0.3"
 monero-harness = { path = "../monero-harness" }
 reqwest = { version = "0.10", default-features = false }
diff --git a/xmr-btc/src/alice.rs b/xmr-btc/src/alice.rs
index 95e12ed6..b6392b04 100644
--- a/xmr-btc/src/alice.rs
+++ b/xmr-btc/src/alice.rs
@@ -24,8 +24,8 @@ use std::{
     sync::Arc,
     time::Duration,
 };
-use tokio::time::timeout;
-use tracing::error;
+use tokio::{sync::Mutex, time::timeout};
+use tracing::{error, info};
 
 pub mod message;
 pub use message::{Message, Message0, Message1, Message2};
@@ -62,7 +62,7 @@ pub trait ReceiveBitcoinRedeemEncsig {
 /// The argument `bitcoin_tx_lock_timeout` is used to determine how long we will
 /// wait for Bob, the counterparty, to lock up the bitcoin.
 pub fn action_generator<N, B>(
-    mut network: N,
+    network: Arc<Mutex<N>>,
     bitcoin_client: Arc<B>,
     // TODO: Replace this with a new, slimmer struct?
     State3 {
@@ -86,7 +86,7 @@ pub fn action_generator<N, B>(
     bitcoin_tx_lock_timeout: u64,
 ) -> GenBoxed<Action, (), ()>
 where
-    N: ReceiveBitcoinRedeemEncsig + Send + Sync + 'static,
+    N: ReceiveBitcoinRedeemEncsig + Send + 'static,
     B: bitcoin::BlockHeight
         + bitcoin::TransactionBlockHeight
         + bitcoin::WatchForRawTransaction
@@ -158,19 +158,26 @@ where
             // TODO: Watch for LockXmr using watch-only wallet. Doing so will prevent Alice
             // from cancelling/refunding unnecessarily.
 
-            let tx_redeem_encsig = match select(
-                network.receive_bitcoin_redeem_encsig(),
-                poll_until_btc_has_expired.clone(),
-            )
-            .await
-            {
-                Either::Left((encsig, _)) => encsig,
-                Either::Right(_) => {
-                    return Err(SwapFailed::AfterXmrLock {
-                        reason: Reason::BtcExpired,
-                        tx_lock_height,
-                    })
-                }
+            let tx_redeem_encsig = {
+                let mut guard = network.as_ref().lock().await;
+                let tx_redeem_encsig = match select(
+                    guard.receive_bitcoin_redeem_encsig(),
+                    poll_until_btc_has_expired.clone(),
+                )
+                .await
+                {
+                    Either::Left((encsig, _)) => encsig,
+                    Either::Right(_) => {
+                        return Err(SwapFailed::AfterXmrLock {
+                            reason: Reason::BtcExpired,
+                            tx_lock_height,
+                        })
+                    }
+                };
+
+                tracing::debug!("select returned redeem encsig from message");
+
+                tx_redeem_encsig
             };
 
             let (signed_tx_redeem, tx_redeem_txid) = {
@@ -519,6 +526,7 @@ impl State0 {
     }
 
     pub fn next_message<R: RngCore + CryptoRng>(&self, rng: &mut R) -> Message0 {
+        info!("Producing first message");
         let dleq_proof_s_a = cross_curve_dleq::Proof::new(rng, &self.s_a);
 
         Message0 {
diff --git a/xmr-btc/src/alice/message.rs b/xmr-btc/src/alice/message.rs
index 30958a83..b82f6f9f 100644
--- a/xmr-btc/src/alice/message.rs
+++ b/xmr-btc/src/alice/message.rs
@@ -31,7 +31,7 @@ pub struct Message1 {
 
 #[derive(Clone, Debug, Serialize, Deserialize)]
 pub struct Message2 {
-    pub(crate) tx_lock_proof: monero::TransferProof,
+    pub tx_lock_proof: monero::TransferProof,
 }
 
 impl_try_from_parent_enum!(Message0, Message);
diff --git a/xmr-btc/src/bob.rs b/xmr-btc/src/bob.rs
index ac1180c9..8039a250 100644
--- a/xmr-btc/src/bob.rs
+++ b/xmr-btc/src/bob.rs
@@ -28,7 +28,7 @@ use std::{
     sync::Arc,
     time::Duration,
 };
-use tokio::time::timeout;
+use tokio::{sync::Mutex, time::timeout};
 use tracing::error;
 
 pub mod message;
@@ -62,7 +62,7 @@ pub trait ReceiveTransferProof {
 /// The argument `bitcoin_tx_lock_timeout` is used to determine how long we will
 /// wait for Bob, the caller of this function, to lock up the bitcoin.
 pub fn action_generator<N, M, B>(
-    mut network: N,
+    network: Arc<Mutex<N>>,
     monero_client: Arc<M>,
     bitcoin_client: Arc<B>,
     // TODO: Replace this with a new, slimmer struct?
@@ -85,7 +85,7 @@ pub fn action_generator<N, M, B>(
     bitcoin_tx_lock_timeout: u64,
 ) -> GenBoxed<Action, (), ()>
 where
-    N: ReceiveTransferProof + Send + Sync + 'static,
+    N: ReceiveTransferProof + Send + 'static,
     M: monero::WatchForTransfer + Send + Sync + 'static,
     B: bitcoin::BlockHeight
         + bitcoin::TransactionBlockHeight
@@ -140,14 +140,21 @@ where
             .shared();
             pin_mut!(poll_until_btc_has_expired);
 
-            let transfer_proof = match select(
-                network.receive_transfer_proof(),
-                poll_until_btc_has_expired.clone(),
-            )
-            .await
-            {
-                Either::Left((proof, _)) => proof,
-                Either::Right(_) => return Err(SwapFailed::AfterBtcLock(Reason::BtcExpired)),
+            let transfer_proof = {
+                let mut guard = network.as_ref().lock().await;
+                let transfer_proof = match select(
+                    guard.receive_transfer_proof(),
+                    poll_until_btc_has_expired.clone(),
+                )
+                .await
+                {
+                    Either::Left((proof, _)) => proof,
+                    Either::Right(_) => return Err(SwapFailed::AfterBtcLock(Reason::BtcExpired)),
+                };
+
+                tracing::debug!("select returned transfer proof from message");
+
+                transfer_proof
             };
 
             let S_b_monero = monero::PublicKey::from_private_key(&monero::PrivateKey::from_scalar(
diff --git a/xmr-btc/src/bob/message.rs b/xmr-btc/src/bob/message.rs
index b6bed872..178c0218 100644
--- a/xmr-btc/src/bob/message.rs
+++ b/xmr-btc/src/bob/message.rs
@@ -33,9 +33,9 @@ pub struct Message2 {
     pub(crate) tx_cancel_sig: Signature,
 }
 
-#[derive(Clone, Debug)]
+#[derive(Clone, Debug, Serialize, Deserialize)]
 pub struct Message3 {
-    pub(crate) tx_redeem_encsig: EncryptedSignature,
+    pub tx_redeem_encsig: EncryptedSignature,
 }
 
 impl_try_from_parent_enum!(Message0, Message);
diff --git a/xmr-btc/tests/on_chain.rs b/xmr-btc/tests/on_chain.rs
index f7293011..e61db076 100644
--- a/xmr-btc/tests/on_chain.rs
+++ b/xmr-btc/tests/on_chain.rs
@@ -1,7 +1,5 @@
 pub mod harness;
 
-use std::{convert::TryInto, sync::Arc};
-
 use anyhow::Result;
 use async_trait::async_trait;
 use futures::{
@@ -16,9 +14,10 @@ use harness::{
 };
 use monero_harness::Monero;
 use rand::rngs::OsRng;
+use std::{convert::TryInto, sync::Arc};
 use testcontainers::clients::Cli;
+use tokio::sync::Mutex;
 use tracing::info;
-use tracing_subscriber::util::SubscriberInitExt;
 use xmr_btc::{
     alice::{self, ReceiveBitcoinRedeemEncsig},
     bitcoin::{BroadcastSignedTransaction, EncryptedSignature, SignTxLock},
@@ -102,7 +101,7 @@ impl Default for BobBehaviour {
 }
 
 async fn swap_as_alice(
-    network: AliceNetwork,
+    network: Arc<Mutex<AliceNetwork>>,
     // FIXME: It would be more intuitive to have a single network/transport struct instead of
     // splitting into two, but Rust ownership rules make this tedious
     mut sender: Sender<TransferProof>,
@@ -168,7 +167,7 @@ async fn swap_as_alice(
 }
 
 async fn swap_as_bob(
-    network: BobNetwork,
+    network: Arc<Mutex<BobNetwork>>,
     mut sender: Sender<EncryptedSignature>,
     monero_wallet: Arc<harness::wallet::monero::Wallet>,
     bitcoin_wallet: Arc<harness::wallet::bitcoin::Wallet>,
@@ -276,7 +275,7 @@ async fn on_chain_happy_path() {
 
     try_join(
         swap_as_alice(
-            alice_network,
+            Arc::new(Mutex::new(alice_network)),
             alice_sender,
             alice_monero_wallet.clone(),
             alice_bitcoin_wallet.clone(),
@@ -284,7 +283,7 @@ async fn on_chain_happy_path() {
             alice,
         ),
         swap_as_bob(
-            bob_network,
+            Arc::new(Mutex::new(bob_network)),
             bob_sender,
             bob_monero_wallet.clone(),
             bob_bitcoin_wallet.clone(),
@@ -367,7 +366,7 @@ async fn on_chain_both_refund_if_alice_never_redeems() {
 
     try_join(
         swap_as_alice(
-            alice_network,
+            Arc::new(Mutex::new(alice_network)),
             alice_sender,
             alice_monero_wallet.clone(),
             alice_bitcoin_wallet.clone(),
@@ -378,7 +377,7 @@ async fn on_chain_both_refund_if_alice_never_redeems() {
             alice,
         ),
         swap_as_bob(
-            bob_network,
+            Arc::new(Mutex::new(bob_network)),
             bob_sender,
             bob_monero_wallet.clone(),
             bob_bitcoin_wallet.clone(),
@@ -419,11 +418,6 @@ async fn on_chain_both_refund_if_alice_never_redeems() {
 
 #[tokio::test]
 async fn on_chain_alice_punishes_if_bob_never_acts_after_fund() {
-    let _guard = tracing_subscriber::fmt()
-        .with_env_filter("info")
-        .with_ansi(false)
-        .set_default();
-
     let cli = Cli::default();
     let (monero, _container) = Monero::new(&cli).unwrap();
     let bitcoind = init_bitcoind(&cli).await;
@@ -461,7 +455,7 @@ async fn on_chain_alice_punishes_if_bob_never_acts_after_fund() {
     let (bob_network, alice_sender) = Network::<TransferProof>::new();
 
     let alice_swap = swap_as_alice(
-        alice_network,
+        Arc::new(Mutex::new(alice_network)),
         alice_sender,
         alice_monero_wallet.clone(),
         alice_bitcoin_wallet.clone(),
@@ -469,7 +463,7 @@ async fn on_chain_alice_punishes_if_bob_never_acts_after_fund() {
         alice,
     );
     let bob_swap = swap_as_bob(
-        bob_network,
+        Arc::new(Mutex::new(bob_network)),
         bob_sender,
         bob_monero_wallet.clone(),
         bob_bitcoin_wallet.clone(),