diff --git a/lnwallet/channel.go b/lnwallet/channel.go
index 007dfb6a..c0e58960 100644
--- a/lnwallet/channel.go
+++ b/lnwallet/channel.go
@@ -154,15 +154,6 @@ func (lc *LightningChannel) VerifyCommitmentUpdate() error {
 	return nil
 }
 
-// P2SHify...
-func P2SHify(scriptBytes []byte) ([]byte, error) {
-	bldr := txscript.NewScriptBuilder()
-	bldr.AddOp(txscript.OP_HASH160)
-	bldr.AddData(btcutil.Hash160(scriptBytes))
-	bldr.AddOp(txscript.OP_EQUAL)
-	return bldr.Script()
-}
-
 // createCommitTx...
 func createCommitTx(fundingOutput *wire.TxIn, ourKey, theirKey *btcec.PublicKey,
 	revokeHash [32]byte, csvTimeout int64, amtToUs,
@@ -190,7 +181,7 @@ func createCommitTx(fundingOutput *wire.TxIn, ourKey, theirKey *btcec.PublicKey,
 	if err != nil {
 		return nil, err
 	}
-	payToUsScriptHash, err := P2SHify(ourRedeemScript)
+	payToUsScriptHash, err := scriptHashPkScript(ourRedeemScript)
 	if err != nil {
 		return nil, err
 	}
@@ -208,7 +199,7 @@ func createCommitTx(fundingOutput *wire.TxIn, ourKey, theirKey *btcec.PublicKey,
 	if err != nil {
 		return nil, err
 	}
-	payToThemScriptHash, err := P2SHify(theirRedeemScript)
+	payToThemScriptHash, err := scriptHashPkScript(theirRedeemScript)
 	if err != nil {
 		return nil, err
 	}
diff --git a/lnwallet/wallet.go b/lnwallet/wallet.go
index 5a0818eb..198fefb6 100644
--- a/lnwallet/wallet.go
+++ b/lnwallet/wallet.go
@@ -496,21 +496,19 @@ func (l *LightningWallet) handleFundingCounterPartyFunds(req *addCounterPartyFun
 
 	// Finally, add the 2-of-2 multi-sig output which will set up the lightning
 	// channel.
-	// TODO(roasbeef): Cannonical sorting of keys here?
-	//  * also, also this is currently bare-multi sig, keep this for network
-	//    transparency or switch to P2SH?
-	keys := make([]*btcutil.AddressPubKey, 2)
+	// TODO(roasbeef): track multi-sig and change outputs indexes
 	ourKey := pendingReservation.partialState.multiSigKey.PubKey().SerializeCompressed()
-	keys[0], _ = btcutil.NewAddressPubKey(ourKey, ActiveNetParams)
 	pendingReservation.theirMultiSigKey = req.theirKey
-	keys[1], _ = btcutil.NewAddressPubKey(pendingReservation.theirMultiSigKey.SerializeCompressed(), ActiveNetParams)
-	multiSigScript, err := txscript.MultiSigScript(keys, 2)
+	theirKey := pendingReservation.theirMultiSigKey.SerializeCompressed()
+
+	channelCapacity := int64(pendingReservation.partialState.capacity)
+	redeemScript, multiSigOut, err := fundMultiSigOut(ourKey, theirKey,
+		channelCapacity)
 	if err != nil {
 		req.err <- err
 		return
 	}
-	multiSigOut := wire.NewTxOut(int64(pendingReservation.partialState.capacity),
-		multiSigScript)
+	pendingReservation.partialState.fundingRedeemScript = redeemScript
 	pendingReservation.partialState.fundingTx.AddTxOut(multiSigOut)
 
 	// Sort the transaction. Since both side agree to a cannonical