diff --git a/channeldb/kvdb/config.go b/channeldb/kvdb/config.go
index aca389ae..a156c8aa 100644
--- a/channeldb/kvdb/config.go
+++ b/channeldb/kvdb/config.go
@@ -33,30 +33,3 @@ type BoltConfig struct {
 
 	DBTimeout time.Duration `long:"dbtimeout" description:"Specify the timeout value used when opening the database."`
 }
-
-// EtcdConfig holds etcd configuration.
-type EtcdConfig struct {
-	Embedded bool `long:"embedded" description:"Use embedded etcd instance instead of the external one. Note: use for testing only."`
-
-	EmbeddedClientPort uint16 `long:"embedded_client_port" description:"Client port to use for the embedded instance. Note: use for testing only."`
-
-	EmbeddedPeerPort uint16 `long:"embedded_peer_port" description:"Peer port to use for the embedded instance. Note: use for testing only."`
-
-	Host string `long:"host" description:"Etcd database host."`
-
-	User string `long:"user" description:"Etcd database user."`
-
-	Pass string `long:"pass" description:"Password for the database user."`
-
-	Namespace string `long:"namespace" description:"The etcd namespace to use."`
-
-	DisableTLS bool `long:"disabletls" description:"Disable TLS for etcd connection. Caution: use for development only."`
-
-	CertFile string `long:"cert_file" description:"Path to the TLS certificate for etcd RPC."`
-
-	KeyFile string `long:"key_file" description:"Path to the TLS private key for etcd RPC."`
-
-	InsecureSkipVerify bool `long:"insecure_skip_verify" description:"Whether we intend to skip TLS verification"`
-
-	CollectStats bool `long:"collect_stats" description:"Whether to collect etcd commit stats."`
-}
diff --git a/channeldb/kvdb/etcd/bucket_test.go b/channeldb/kvdb/etcd/bucket_test.go
index e68821f1..6a97a9b8 100644
--- a/channeldb/kvdb/etcd/bucket_test.go
+++ b/channeldb/kvdb/etcd/bucket_test.go
@@ -7,7 +7,7 @@ package etcd
 func bkey(buckets ...string) string {
 	var bucketKey []byte
 
-	rootID := makeBucketID([]byte(""))
+	rootID := makeBucketID([]byte(etcdDefaultRootBucketId))
 	parent := rootID[:]
 
 	for _, bucketName := range buckets {
@@ -29,7 +29,7 @@ func bval(buckets ...string) string {
 // vkey is a helper function used in tests to create a value key from the
 // passed key and bucket list.
 func vkey(key string, buckets ...string) string {
-	rootID := makeBucketID([]byte(""))
+	rootID := makeBucketID([]byte(etcdDefaultRootBucketId))
 	bucket := rootID[:]
 
 	for _, bucketName := range buckets {
diff --git a/channeldb/kvdb/etcd/config.go b/channeldb/kvdb/etcd/config.go
new file mode 100644
index 00000000..5869438c
--- /dev/null
+++ b/channeldb/kvdb/etcd/config.go
@@ -0,0 +1,28 @@
+package etcd
+
+// Config holds etcd configuration alongside with configuration related to our higher level interface.
+type Config struct {
+	Embedded bool `long:"embedded" description:"Use embedded etcd instance instead of the external one. Note: use for testing only."`
+
+	EmbeddedClientPort uint16 `long:"embedded_client_port" description:"Client port to use for the embedded instance. Note: use for testing only."`
+
+	EmbeddedPeerPort uint16 `long:"embedded_peer_port" description:"Peer port to use for the embedded instance. Note: use for testing only."`
+
+	Host string `long:"host" description:"Etcd database host."`
+
+	User string `long:"user" description:"Etcd database user."`
+
+	Pass string `long:"pass" description:"Password for the database user."`
+
+	Namespace string `long:"namespace" description:"The etcd namespace to use."`
+
+	DisableTLS bool `long:"disabletls" description:"Disable TLS for etcd connection. Caution: use for development only."`
+
+	CertFile string `long:"cert_file" description:"Path to the TLS certificate for etcd RPC."`
+
+	KeyFile string `long:"key_file" description:"Path to the TLS private key for etcd RPC."`
+
+	InsecureSkipVerify bool `long:"insecure_skip_verify" description:"Whether we intend to skip TLS verification"`
+
+	CollectStats bool `long:"collect_stats" description:"Whether to collect etcd commit stats."`
+}
diff --git a/channeldb/kvdb/etcd/db.go b/channeldb/kvdb/etcd/db.go
index 2c31e6a2..b2e6390e 100644
--- a/channeldb/kvdb/etcd/db.go
+++ b/channeldb/kvdb/etcd/db.go
@@ -120,7 +120,8 @@ func (c *commitStatsCollector) callback(succ bool, stats CommitStats) {
 
 // db holds a reference to the etcd client connection.
 type db struct {
-	config               BackendConfig
+	cfg                  Config
+	ctx                  context.Context
 	cli                  *clientv3.Client
 	commitStatsCollector *commitStatsCollector
 	txQueue              *commitQueue
@@ -129,61 +130,23 @@ type db struct {
 // Enforce db implements the walletdb.DB interface.
 var _ walletdb.DB = (*db)(nil)
 
-// BackendConfig holds and etcd backend config and connection parameters.
-type BackendConfig struct {
-	// Ctx is the context we use to cancel operations upon exit.
-	Ctx context.Context
-
-	// Host holds the peer url of the etcd instance.
-	Host string
-
-	// User is the username for the etcd peer.
-	User string
-
-	// Pass is the password for the etcd peer.
-	Pass string
-
-	// DisableTLS disables the use of TLS for etcd connections.
-	DisableTLS bool
-
-	// CertFile holds the path to the TLS certificate for etcd RPC.
-	CertFile string
-
-	// KeyFile holds the path to the TLS private key for etcd RPC.
-	KeyFile string
-
-	// InsecureSkipVerify should be set to true if we intend to
-	// skip TLS verification.
-	InsecureSkipVerify bool
-
-	// Namespace is the etcd namespace that we'll use for all keys.
-	Namespace string
-
-	// CollectCommitStats indicates wheter to commit commit stats.
-	CollectCommitStats bool
-}
-
 // newEtcdBackend returns a db object initialized with the passed backend
 // config. If etcd connection cannot be estabished, then returns error.
-func newEtcdBackend(config BackendConfig) (*db, error) {
-	if config.Ctx == nil {
-		config.Ctx = context.Background()
-	}
-
+func newEtcdBackend(ctx context.Context, cfg Config) (*db, error) {
 	clientCfg := clientv3.Config{
-		Context:            config.Ctx,
-		Endpoints:          []string{config.Host},
+		Context:            ctx,
+		Endpoints:          []string{cfg.Host},
 		DialTimeout:        etcdConnectionTimeout,
-		Username:           config.User,
-		Password:           config.Pass,
+		Username:           cfg.User,
+		Password:           cfg.Pass,
 		MaxCallSendMsgSize: 16384*1024 - 1,
 	}
 
-	if !config.DisableTLS {
+	if !cfg.DisableTLS {
 		tlsInfo := transport.TLSInfo{
-			CertFile:           config.CertFile,
-			KeyFile:            config.KeyFile,
-			InsecureSkipVerify: config.InsecureSkipVerify,
+			CertFile:           cfg.CertFile,
+			KeyFile:            cfg.KeyFile,
+			InsecureSkipVerify: cfg.InsecureSkipVerify,
 		}
 
 		tlsConfig, err := tlsInfo.ClientConfig()
@@ -200,17 +163,18 @@ func newEtcdBackend(config BackendConfig) (*db, error) {
 	}
 
 	// Apply the namespace.
-	cli.KV = namespace.NewKV(cli.KV, config.Namespace)
-	cli.Watcher = namespace.NewWatcher(cli.Watcher, config.Namespace)
-	cli.Lease = namespace.NewLease(cli.Lease, config.Namespace)
+	cli.KV = namespace.NewKV(cli.KV, cfg.Namespace)
+	cli.Watcher = namespace.NewWatcher(cli.Watcher, cfg.Namespace)
+	cli.Lease = namespace.NewLease(cli.Lease, cfg.Namespace)
 
 	backend := &db{
+		cfg:     cfg,
+		ctx:     ctx,
 		cli:     cli,
-		config:  config,
-		txQueue: NewCommitQueue(config.Ctx),
+		txQueue: NewCommitQueue(ctx),
 	}
 
-	if config.CollectCommitStats {
+	if cfg.CollectStats {
 		backend.commitStatsCollector = newCommitStatsColletor()
 	}
 
@@ -220,10 +184,10 @@ func newEtcdBackend(config BackendConfig) (*db, error) {
 // getSTMOptions creats all STM options based on the backend config.
 func (db *db) getSTMOptions() []STMOptionFunc {
 	opts := []STMOptionFunc{
-		WithAbortContext(db.config.Ctx),
+		WithAbortContext(db.ctx),
 	}
 
-	if db.config.CollectCommitStats {
+	if db.cfg.CollectStats {
 		opts = append(opts,
 			WithCommitStatsCallback(db.commitStatsCollector.callback),
 		)
@@ -293,7 +257,7 @@ func (db *db) BeginReadTx() (walletdb.ReadTx, error) {
 // start a read-only transaction to perform all operations.
 // This function is part of the walletdb.Db interface implementation.
 func (db *db) Copy(w io.Writer) error {
-	ctx, cancel := context.WithTimeout(db.config.Ctx, etcdLongTimeout)
+	ctx, cancel := context.WithTimeout(db.ctx, etcdLongTimeout)
 	defer cancel()
 
 	readCloser, err := db.cli.Snapshot(ctx)
diff --git a/channeldb/kvdb/etcd/db_test.go b/channeldb/kvdb/etcd/db_test.go
index 191c35ab..7d0c10be 100644
--- a/channeldb/kvdb/etcd/db_test.go
+++ b/channeldb/kvdb/etcd/db_test.go
@@ -17,7 +17,7 @@ func TestCopy(t *testing.T) {
 	f := NewEtcdTestFixture(t)
 	defer f.Cleanup()
 
-	db, err := newEtcdBackend(f.BackendConfig())
+	db, err := newEtcdBackend(context.TODO(), f.BackendConfig())
 	require.NoError(t, err)
 
 	err = db.Update(func(tx walletdb.ReadWriteTx) error {
@@ -53,10 +53,9 @@ func TestAbortContext(t *testing.T) {
 	ctx, cancel := context.WithCancel(context.Background())
 
 	config := f.BackendConfig()
-	config.Ctx = ctx
 
 	// Pass abort context and abort right away.
-	db, err := newEtcdBackend(config)
+	db, err := newEtcdBackend(ctx, config)
 	require.NoError(t, err)
 	cancel()
 
diff --git a/channeldb/kvdb/etcd/driver.go b/channeldb/kvdb/etcd/driver.go
index 8e313fc6..39a9deb9 100644
--- a/channeldb/kvdb/etcd/driver.go
+++ b/channeldb/kvdb/etcd/driver.go
@@ -3,6 +3,7 @@
 package etcd
 
 import (
+	"context"
 	"fmt"
 
 	"github.com/btcsuite/btcwallet/walletdb"
@@ -13,45 +14,55 @@ const (
 )
 
 // parseArgs parses the arguments from the walletdb Open/Create methods.
-func parseArgs(funcName string, args ...interface{}) (*BackendConfig, error) {
-	if len(args) != 1 {
-		return nil, fmt.Errorf("invalid number of arguments to %s.%s -- "+
-			"expected: etcd.BackendConfig",
+func parseArgs(funcName string, args ...interface{}) (context.Context,
+	*Config, error) {
+
+	if len(args) != 2 {
+		return nil, nil, fmt.Errorf("invalid number of arguments to "+
+			"%s.%s -- expected: context.Context, etcd.Config",
 			dbType, funcName,
 		)
 	}
 
-	config, ok := args[0].(BackendConfig)
+	ctx, ok := args[0].(context.Context)
 	if !ok {
-		return nil, fmt.Errorf("argument to %s.%s is invalid -- "+
-			"expected: etcd.BackendConfig",
+		return nil, nil, fmt.Errorf("argument 0 to %s.%s is invalid "+
+			"-- expected: context.Context",
 			dbType, funcName,
 		)
 	}
 
-	return &config, nil
+	config, ok := args[1].(*Config)
+	if !ok {
+		return nil, nil, fmt.Errorf("argument 1 to %s.%s is invalid -- "+
+			"expected: etcd.Config",
+			dbType, funcName,
+		)
+	}
+
+	return ctx, config, nil
 }
 
 // createDBDriver is the callback provided during driver registration that
 // creates, initializes, and opens a database for use.
 func createDBDriver(args ...interface{}) (walletdb.DB, error) {
-	config, err := parseArgs("Create", args...)
+	ctx, config, err := parseArgs("Create", args...)
 	if err != nil {
 		return nil, err
 	}
 
-	return newEtcdBackend(*config)
+	return newEtcdBackend(ctx, *config)
 }
 
 // openDBDriver is the callback provided during driver registration that opens
 // an existing database for use.
 func openDBDriver(args ...interface{}) (walletdb.DB, error) {
-	config, err := parseArgs("Open", args...)
+	ctx, config, err := parseArgs("Open", args...)
 	if err != nil {
 		return nil, err
 	}
 
-	return newEtcdBackend(*config)
+	return newEtcdBackend(ctx, *config)
 }
 
 func init() {
diff --git a/channeldb/kvdb/etcd/embed.go b/channeldb/kvdb/etcd/embed.go
index 5b744bc0..0de87c0b 100644
--- a/channeldb/kvdb/etcd/embed.go
+++ b/channeldb/kvdb/etcd/embed.go
@@ -3,7 +3,6 @@
 package etcd
 
 import (
-	"context"
 	"fmt"
 	"net"
 	"net/url"
@@ -62,7 +61,7 @@ func getFreePort() int {
 // listening on random open ports. Returns the backend config and a cleanup
 // func that will stop the etcd instance.
 func NewEmbeddedEtcdInstance(path string, clientPort, peerPort uint16) (
-	*BackendConfig, func(), error) {
+	*Config, func(), error) {
 
 	cfg := embed.NewConfig()
 	cfg.Dir = path
@@ -98,10 +97,7 @@ func NewEmbeddedEtcdInstance(path string, clientPort, peerPort uint16) (
 			fmt.Errorf("etcd failed to start after: %v", readyTimeout)
 	}
 
-	ctx, cancel := context.WithCancel(context.Background())
-
-	connConfig := &BackendConfig{
-		Ctx:                ctx,
+	connConfig := &Config{
 		Host:               "http://" + peerURL,
 		User:               "user",
 		Pass:               "pass",
@@ -110,7 +106,6 @@ func NewEmbeddedEtcdInstance(path string, clientPort, peerPort uint16) (
 	}
 
 	return connConfig, func() {
-		cancel()
 		etcd.Close()
 	}, nil
 }
diff --git a/channeldb/kvdb/etcd/fixture_test.go b/channeldb/kvdb/etcd/fixture_test.go
index 2fa0045f..797aadf6 100644
--- a/channeldb/kvdb/etcd/fixture_test.go
+++ b/channeldb/kvdb/etcd/fixture_test.go
@@ -22,14 +22,14 @@ const (
 type EtcdTestFixture struct {
 	t       *testing.T
 	cli     *clientv3.Client
-	config  *BackendConfig
+	config  *Config
 	cleanup func()
 }
 
 // NewTestEtcdInstance creates an embedded etcd instance for testing, listening
 // on random open ports. Returns the connection config and a cleanup func that
 // will stop the etcd instance.
-func NewTestEtcdInstance(t *testing.T, path string) (*BackendConfig, func()) {
+func NewTestEtcdInstance(t *testing.T, path string) (*Config, func()) {
 	t.Helper()
 
 	config, cleanup, err := NewEmbeddedEtcdInstance(path, 0, 0)
@@ -124,7 +124,7 @@ func (f *EtcdTestFixture) Dump() map[string]string {
 
 // BackendConfig returns the backend config for connecting to theembedded
 // etcd instance.
-func (f *EtcdTestFixture) BackendConfig() BackendConfig {
+func (f *EtcdTestFixture) BackendConfig() Config {
 	return *f.config
 }
 
diff --git a/channeldb/kvdb/etcd/readwrite_bucket_test.go b/channeldb/kvdb/etcd/readwrite_bucket_test.go
index 085d6e6d..b630e5ee 100644
--- a/channeldb/kvdb/etcd/readwrite_bucket_test.go
+++ b/channeldb/kvdb/etcd/readwrite_bucket_test.go
@@ -3,6 +3,7 @@
 package etcd
 
 import (
+	"context"
 	"fmt"
 	"math"
 	"testing"
@@ -17,7 +18,7 @@ func TestBucketCreation(t *testing.T) {
 	f := NewEtcdTestFixture(t)
 	defer f.Cleanup()
 
-	db, err := newEtcdBackend(f.BackendConfig())
+	db, err := newEtcdBackend(context.TODO(), f.BackendConfig())
 	require.NoError(t, err)
 
 	err = db.Update(func(tx walletdb.ReadWriteTx) error {
@@ -98,7 +99,7 @@ func TestBucketDeletion(t *testing.T) {
 	f := NewEtcdTestFixture(t)
 	defer f.Cleanup()
 
-	db, err := newEtcdBackend(f.BackendConfig())
+	db, err := newEtcdBackend(context.TODO(), f.BackendConfig())
 	require.NoError(t, err)
 
 	err = db.Update(func(tx walletdb.ReadWriteTx) error {
@@ -208,7 +209,7 @@ func TestBucketForEach(t *testing.T) {
 	f := NewEtcdTestFixture(t)
 	defer f.Cleanup()
 
-	db, err := newEtcdBackend(f.BackendConfig())
+	db, err := newEtcdBackend(context.TODO(), f.BackendConfig())
 	require.NoError(t, err)
 
 	err = db.Update(func(tx walletdb.ReadWriteTx) error {
@@ -284,7 +285,7 @@ func TestBucketForEachWithError(t *testing.T) {
 	f := NewEtcdTestFixture(t)
 	defer f.Cleanup()
 
-	db, err := newEtcdBackend(f.BackendConfig())
+	db, err := newEtcdBackend(context.TODO(), f.BackendConfig())
 	require.NoError(t, err)
 
 	err = db.Update(func(tx walletdb.ReadWriteTx) error {
@@ -374,7 +375,7 @@ func TestBucketSequence(t *testing.T) {
 	f := NewEtcdTestFixture(t)
 	defer f.Cleanup()
 
-	db, err := newEtcdBackend(f.BackendConfig())
+	db, err := newEtcdBackend(context.TODO(), f.BackendConfig())
 	require.NoError(t, err)
 
 	err = db.Update(func(tx walletdb.ReadWriteTx) error {
@@ -413,7 +414,7 @@ func TestKeyClash(t *testing.T) {
 	f := NewEtcdTestFixture(t)
 	defer f.Cleanup()
 
-	db, err := newEtcdBackend(f.BackendConfig())
+	db, err := newEtcdBackend(context.TODO(), f.BackendConfig())
 	require.NoError(t, err)
 
 	// First:
@@ -481,7 +482,7 @@ func TestBucketCreateDelete(t *testing.T) {
 	f := NewEtcdTestFixture(t)
 	defer f.Cleanup()
 
-	db, err := newEtcdBackend(f.BackendConfig())
+	db, err := newEtcdBackend(context.TODO(), f.BackendConfig())
 	require.NoError(t, err)
 
 	err = db.Update(func(tx walletdb.ReadWriteTx) error {
diff --git a/channeldb/kvdb/etcd/readwrite_cursor_test.go b/channeldb/kvdb/etcd/readwrite_cursor_test.go
index 09d4bf7b..ce524f80 100644
--- a/channeldb/kvdb/etcd/readwrite_cursor_test.go
+++ b/channeldb/kvdb/etcd/readwrite_cursor_test.go
@@ -3,6 +3,7 @@
 package etcd
 
 import (
+	"context"
 	"testing"
 
 	"github.com/btcsuite/btcwallet/walletdb"
@@ -15,7 +16,7 @@ func TestReadCursorEmptyInterval(t *testing.T) {
 	f := NewEtcdTestFixture(t)
 	defer f.Cleanup()
 
-	db, err := newEtcdBackend(f.BackendConfig())
+	db, err := newEtcdBackend(context.TODO(), f.BackendConfig())
 	require.NoError(t, err)
 
 	err = db.Update(func(tx walletdb.ReadWriteTx) error {
@@ -59,7 +60,7 @@ func TestReadCursorNonEmptyInterval(t *testing.T) {
 	f := NewEtcdTestFixture(t)
 	defer f.Cleanup()
 
-	db, err := newEtcdBackend(f.BackendConfig())
+	db, err := newEtcdBackend(context.TODO(), f.BackendConfig())
 	require.NoError(t, err)
 
 	testKeyValues := []KV{
@@ -136,7 +137,7 @@ func TestReadWriteCursor(t *testing.T) {
 	f := NewEtcdTestFixture(t)
 	defer f.Cleanup()
 
-	db, err := newEtcdBackend(f.BackendConfig())
+	db, err := newEtcdBackend(context.TODO(), f.BackendConfig())
 	require.NoError(t, err)
 
 	testKeyValues := []KV{
@@ -300,7 +301,7 @@ func TestReadWriteCursorWithBucketAndValue(t *testing.T) {
 	f := NewEtcdTestFixture(t)
 	defer f.Cleanup()
 
-	db, err := newEtcdBackend(f.BackendConfig())
+	db, err := newEtcdBackend(context.TODO(), f.BackendConfig())
 	require.NoError(t, err)
 
 	// Pre-store the first half of the interval.
diff --git a/channeldb/kvdb/etcd/readwrite_tx_test.go b/channeldb/kvdb/etcd/readwrite_tx_test.go
index f005b2f5..7e8c92c6 100644
--- a/channeldb/kvdb/etcd/readwrite_tx_test.go
+++ b/channeldb/kvdb/etcd/readwrite_tx_test.go
@@ -3,6 +3,7 @@
 package etcd
 
 import (
+	"context"
 	"testing"
 
 	"github.com/btcsuite/btcwallet/walletdb"
@@ -15,7 +16,7 @@ func TestTxManualCommit(t *testing.T) {
 	f := NewEtcdTestFixture(t)
 	defer f.Cleanup()
 
-	db, err := newEtcdBackend(f.BackendConfig())
+	db, err := newEtcdBackend(context.TODO(), f.BackendConfig())
 	require.NoError(t, err)
 
 	tx, err := db.BeginReadWriteTx()
@@ -55,7 +56,7 @@ func TestTxRollback(t *testing.T) {
 	f := NewEtcdTestFixture(t)
 	defer f.Cleanup()
 
-	db, err := newEtcdBackend(f.BackendConfig())
+	db, err := newEtcdBackend(context.TODO(), f.BackendConfig())
 	require.NoError(t, err)
 
 	tx, err := db.BeginReadWriteTx()
@@ -79,7 +80,7 @@ func TestChangeDuringManualTx(t *testing.T) {
 	f := NewEtcdTestFixture(t)
 	defer f.Cleanup()
 
-	db, err := newEtcdBackend(f.BackendConfig())
+	db, err := newEtcdBackend(context.TODO(), f.BackendConfig())
 	require.NoError(t, err)
 
 	tx, err := db.BeginReadWriteTx()
@@ -108,7 +109,7 @@ func TestChangeDuringUpdate(t *testing.T) {
 	f := NewEtcdTestFixture(t)
 	defer f.Cleanup()
 
-	db, err := newEtcdBackend(f.BackendConfig())
+	db, err := newEtcdBackend(context.TODO(), f.BackendConfig())
 	require.NoError(t, err)
 
 	count := 0
diff --git a/channeldb/kvdb/etcd/stm_test.go b/channeldb/kvdb/etcd/stm_test.go
index cde4abf3..a780f862 100644
--- a/channeldb/kvdb/etcd/stm_test.go
+++ b/channeldb/kvdb/etcd/stm_test.go
@@ -3,6 +3,7 @@
 package etcd
 
 import (
+	"context"
 	"errors"
 	"testing"
 
@@ -21,13 +22,16 @@ func TestPutToEmpty(t *testing.T) {
 	t.Parallel()
 
 	f := NewEtcdTestFixture(t)
-	txQueue := NewCommitQueue(f.config.Ctx)
+	ctx, cancel := context.WithCancel(context.Background())
+
+	txQueue := NewCommitQueue(ctx)
 	defer func() {
+		cancel()
 		f.Cleanup()
 		txQueue.Wait()
 	}()
 
-	db, err := newEtcdBackend(f.BackendConfig())
+	db, err := newEtcdBackend(ctx, f.BackendConfig())
 	require.NoError(t, err)
 
 	apply := func(stm STM) error {
@@ -45,8 +49,11 @@ func TestGetPutDel(t *testing.T) {
 	t.Parallel()
 
 	f := NewEtcdTestFixture(t)
-	txQueue := NewCommitQueue(f.config.Ctx)
+	ctx, cancel := context.WithCancel(context.Background())
+
+	txQueue := NewCommitQueue(ctx)
 	defer func() {
+		cancel()
 		f.Cleanup()
 		txQueue.Wait()
 	}()
@@ -63,7 +70,7 @@ func TestGetPutDel(t *testing.T) {
 		f.Put(kv.key, kv.val)
 	}
 
-	db, err := newEtcdBackend(f.BackendConfig())
+	db, err := newEtcdBackend(ctx, f.BackendConfig())
 	require.NoError(t, err)
 
 	apply := func(stm STM) error {
@@ -128,8 +135,11 @@ func TestFirstLastNextPrev(t *testing.T) {
 	t.Parallel()
 
 	f := NewEtcdTestFixture(t)
-	txQueue := NewCommitQueue(f.config.Ctx)
+	ctx, cancel := context.WithCancel(context.Background())
+
+	txQueue := NewCommitQueue(ctx)
 	defer func() {
+		cancel()
 		f.Cleanup()
 		txQueue.Wait()
 	}()
@@ -145,7 +155,7 @@ func TestFirstLastNextPrev(t *testing.T) {
 		f.Put(kv.key, kv.val)
 	}
 
-	db, err := newEtcdBackend(f.BackendConfig())
+	db, err := newEtcdBackend(ctx, f.BackendConfig())
 	require.NoError(t, err)
 
 	apply := func(stm STM) error {
@@ -283,13 +293,16 @@ func TestCommitError(t *testing.T) {
 	t.Parallel()
 
 	f := NewEtcdTestFixture(t)
-	txQueue := NewCommitQueue(f.config.Ctx)
+	ctx, cancel := context.WithCancel(context.Background())
+
+	txQueue := NewCommitQueue(ctx)
 	defer func() {
+		cancel()
 		f.Cleanup()
 		txQueue.Wait()
 	}()
 
-	db, err := newEtcdBackend(f.BackendConfig())
+	db, err := newEtcdBackend(ctx, f.BackendConfig())
 	require.NoError(t, err)
 
 	// Preset DB state.
@@ -328,13 +341,16 @@ func TestManualTxError(t *testing.T) {
 	t.Parallel()
 
 	f := NewEtcdTestFixture(t)
-	txQueue := NewCommitQueue(f.config.Ctx)
+	ctx, cancel := context.WithCancel(context.Background())
+
+	txQueue := NewCommitQueue(ctx)
 	defer func() {
+		cancel()
 		f.Cleanup()
 		txQueue.Wait()
 	}()
 
-	db, err := newEtcdBackend(f.BackendConfig())
+	db, err := newEtcdBackend(ctx, f.BackendConfig())
 	require.NoError(t, err)
 
 	// Preset DB state.
diff --git a/channeldb/kvdb/etcd/walletdb_interface_test.go b/channeldb/kvdb/etcd/walletdb_interface_test.go
index 7d4ef023..bdf2680d 100644
--- a/channeldb/kvdb/etcd/walletdb_interface_test.go
+++ b/channeldb/kvdb/etcd/walletdb_interface_test.go
@@ -3,6 +3,7 @@
 package etcd
 
 import (
+	"context"
 	"testing"
 
 	"github.com/btcsuite/btcwallet/walletdb/walletdbtest"
@@ -13,5 +14,6 @@ import (
 func TestWalletDBInterface(t *testing.T) {
 	f := NewEtcdTestFixture(t)
 	defer f.Cleanup()
-	walletdbtest.TestInterface(t, dbType, f.BackendConfig())
+	cfg := f.BackendConfig()
+	walletdbtest.TestInterface(t, dbType, context.TODO(), &cfg)
 }
diff --git a/channeldb/kvdb/kvdb_etcd.go b/channeldb/kvdb/kvdb_etcd.go
index b48b0e5f..95dc22a8 100644
--- a/channeldb/kvdb/kvdb_etcd.go
+++ b/channeldb/kvdb/kvdb_etcd.go
@@ -14,25 +14,10 @@ const TestBackend = EtcdBackendName
 
 // GetEtcdBackend returns an etcd backend configured according to the
 // passed etcdConfig.
-func GetEtcdBackend(ctx context.Context, etcdConfig *EtcdConfig) (
+func GetEtcdBackend(ctx context.Context, etcdConfig *etcd.Config) (
 	Backend, error) {
 
-	// Config translation is needed here in order to keep the
-	// etcd package fully independent from the rest of the source tree.
-	backendConfig := etcd.BackendConfig{
-		Ctx:                ctx,
-		Host:               etcdConfig.Host,
-		User:               etcdConfig.User,
-		Pass:               etcdConfig.Pass,
-		DisableTLS:         etcdConfig.DisableTLS,
-		CertFile:           etcdConfig.CertFile,
-		KeyFile:            etcdConfig.KeyFile,
-		InsecureSkipVerify: etcdConfig.InsecureSkipVerify,
-		Namespace:          etcdConfig.Namespace,
-		CollectCommitStats: etcdConfig.CollectStats,
-	}
-
-	return Open(EtcdBackendName, backendConfig)
+	return Open(EtcdBackendName, etcdConfig)
 }
 
 // GetEtcdTestBackend creates an embedded etcd backend for testing
@@ -49,7 +34,7 @@ func GetEtcdTestBackend(path string, clientPort, peerPort uint16) (
 		return nil, empty, err
 	}
 
-	backend, err := Open(EtcdBackendName, *config)
+	backend, err := Open(EtcdBackendName, context.Background(), config)
 	if err != nil {
 		cleanup()
 		return nil, empty, err
diff --git a/channeldb/kvdb/kvdb_no_etcd.go b/channeldb/kvdb/kvdb_no_etcd.go
index 7dfcb307..4b6f8477 100644
--- a/channeldb/kvdb/kvdb_no_etcd.go
+++ b/channeldb/kvdb/kvdb_no_etcd.go
@@ -5,6 +5,8 @@ package kvdb
 import (
 	"context"
 	"fmt"
+
+	"github.com/lightningnetwork/lnd/channeldb/kvdb/etcd"
 )
 
 // TestBackend is conditionally set to bdb when the kvdb_etcd build tag is
@@ -14,7 +16,7 @@ const TestBackend = BoltBackendName
 var errEtcdNotAvailable = fmt.Errorf("etcd backend not available")
 
 // GetEtcdBackend is a stub returning nil and errEtcdNotAvailable error.
-func GetEtcdBackend(ctx context.Context, etcdConfig *EtcdConfig) (
+func GetEtcdBackend(ctx context.Context, etcdConfig *etcd.Config) (
 	Backend, error) {
 
 	return nil, errEtcdNotAvailable
diff --git a/lncfg/db.go b/lncfg/db.go
index 9f0f7fca..3cc59f79 100644
--- a/lncfg/db.go
+++ b/lncfg/db.go
@@ -6,6 +6,7 @@ import (
 	"time"
 
 	"github.com/lightningnetwork/lnd/channeldb/kvdb"
+	"github.com/lightningnetwork/lnd/channeldb/kvdb/etcd"
 )
 
 const (
@@ -21,7 +22,7 @@ type DB struct {
 
 	BatchCommitInterval time.Duration `long:"batch-commit-interval" description:"The maximum duration the channel graph batch schedulers will wait before attempting to commit a batch of pending updates. This can be tradeoff database contenion for commit latency."`
 
-	Etcd *kvdb.EtcdConfig `group:"etcd" namespace:"etcd" description:"Etcd settings."`
+	Etcd *etcd.Config `group:"etcd" namespace:"etcd" description:"Etcd settings."`
 
 	Bolt *kvdb.BoltConfig `group:"bolt" namespace:"bolt" description:"Bolt settings."`
 }