diff --git a/.github/linters/.hadolint.yml b/.github/linters/.hadolint.yml
index 4fac55596..0d2c353e2 100644
--- a/.github/linters/.hadolint.yml
+++ b/.github/linters/.hadolint.yml
@@ -12,4 +12,6 @@ override:
   info:
     - DL3008
     - DL3027
+    - DL3018
+    - DL3022
   style:
diff --git a/app/app.go b/app/app.go
index cd91ef90e..c5dba3a6c 100644
--- a/app/app.go
+++ b/app/app.go
@@ -6,25 +6,26 @@ import (
 	"os"
 	"path/filepath"
 
+	storetypes "github.com/cosmos/cosmos-sdk/store/types"
+
 	"github.com/cheqd/cheqd-node/x/resource"
 
 	cheqdtypes "github.com/cheqd/cheqd-node/x/cheqd/types"
 	resourcetypes "github.com/cheqd/cheqd-node/x/resource/types"
-	storetypes "github.com/cosmos/cosmos-sdk/store/types"
 	"github.com/cosmos/cosmos-sdk/version"
 	"github.com/cosmos/cosmos-sdk/x/authz"
 	authzkeeper "github.com/cosmos/cosmos-sdk/x/authz/keeper"
 	authzmodule "github.com/cosmos/cosmos-sdk/x/authz/module"
-	"github.com/cosmos/ibc-go/modules/apps/transfer"
-	ibctransferkeeper "github.com/cosmos/ibc-go/modules/apps/transfer/keeper"
-	ibctransfertypes "github.com/cosmos/ibc-go/modules/apps/transfer/types"
-	ibc "github.com/cosmos/ibc-go/modules/core"
-	ibcclient "github.com/cosmos/ibc-go/modules/core/02-client"
-	ibcclientclient "github.com/cosmos/ibc-go/modules/core/02-client/client"
-	ibcclienttypes "github.com/cosmos/ibc-go/modules/core/02-client/types"
-	porttypes "github.com/cosmos/ibc-go/modules/core/05-port/types"
-	ibchost "github.com/cosmos/ibc-go/modules/core/24-host"
-	ibckeeper "github.com/cosmos/ibc-go/modules/core/keeper"
+	"github.com/cosmos/ibc-go/v3/modules/apps/transfer"
+	ibctransferkeeper "github.com/cosmos/ibc-go/v3/modules/apps/transfer/keeper"
+	ibctransfertypes "github.com/cosmos/ibc-go/v3/modules/apps/transfer/types"
+	ibc "github.com/cosmos/ibc-go/v3/modules/core"
+	ibcclient "github.com/cosmos/ibc-go/v3/modules/core/02-client"
+	ibcclientclient "github.com/cosmos/ibc-go/v3/modules/core/02-client/client"
+	ibcclienttypes "github.com/cosmos/ibc-go/v3/modules/core/02-client/types"
+	porttypes "github.com/cosmos/ibc-go/v3/modules/core/05-port/types"
+	ibchost "github.com/cosmos/ibc-go/v3/modules/core/24-host"
+	ibckeeper "github.com/cosmos/ibc-go/v3/modules/core/keeper"
 
 	"github.com/gorilla/mux"
 	"github.com/rakyll/statik/fs"
@@ -103,28 +104,15 @@ import (
 	upgradekeeper "github.com/cosmos/cosmos-sdk/x/upgrade/keeper"
 	upgradetypes "github.com/cosmos/cosmos-sdk/x/upgrade/types"
 	tmjson "github.com/tendermint/tendermint/libs/json"
-)
 
-const (
-	Name            = "cheqd-node"
-	ProtocolVersion = 1
+	ica "github.com/cosmos/ibc-go/v3/modules/apps/27-interchain-accounts"
+	icacontrollertypes "github.com/cosmos/ibc-go/v3/modules/apps/27-interchain-accounts/controller/types"
+	icahost "github.com/cosmos/ibc-go/v3/modules/apps/27-interchain-accounts/host"
+	icahostkeeper "github.com/cosmos/ibc-go/v3/modules/apps/27-interchain-accounts/host/keeper"
+	icahosttypes "github.com/cosmos/ibc-go/v3/modules/apps/27-interchain-accounts/host/types"
+	icatypes "github.com/cosmos/ibc-go/v3/modules/apps/27-interchain-accounts/types"
 )
 
-func getGovProposalHandlers() []govclient.ProposalHandler {
-	var govProposalHandlers []govclient.ProposalHandler
-
-	govProposalHandlers = append(govProposalHandlers,
-		paramsclient.ProposalHandler,
-		distrclient.ProposalHandler,
-		upgradeclient.ProposalHandler,
-		upgradeclient.CancelProposalHandler,
-		ibcclientclient.UpdateClientProposalHandler,
-		ibcclientclient.UpgradeProposalHandler,
-	)
-
-	return govProposalHandlers
-}
-
 var (
 	// DefaultNodeHome default home directories for the application daemon
 	DefaultNodeHome string
@@ -140,7 +128,14 @@ var (
 		staking.AppModuleBasic{},
 		mint.AppModuleBasic{},
 		distr.AppModuleBasic{},
-		gov.NewAppModuleBasic(getGovProposalHandlers()...),
+		gov.NewAppModuleBasic([]govclient.ProposalHandler{
+			paramsclient.ProposalHandler,
+			distrclient.ProposalHandler,
+			upgradeclient.ProposalHandler,
+			upgradeclient.CancelProposalHandler,
+			ibcclientclient.UpdateClientProposalHandler,
+			ibcclientclient.UpgradeProposalHandler,
+		}...),
 		params.AppModuleBasic{},
 		crisis.AppModuleBasic{},
 		slashing.AppModuleBasic{},
@@ -153,17 +148,19 @@ var (
 		authzmodule.AppModuleBasic{},
 		cheqd.AppModuleBasic{},
 		resource.AppModuleBasic{},
+		ica.AppModuleBasic{},
 	)
 
 	// module account permissions
 	maccPerms = map[string][]string{
 		authtypes.FeeCollectorName:     nil,
 		distrtypes.ModuleName:          nil,
+		icatypes.ModuleName:            nil,
 		minttypes.ModuleName:           {authtypes.Minter},
 		stakingtypes.BondedPoolName:    {authtypes.Burner, authtypes.Staking},
 		stakingtypes.NotBondedPoolName: {authtypes.Burner, authtypes.Staking},
-		ibctransfertypes.ModuleName:    {authtypes.Minter, authtypes.Burner},
 		govtypes.ModuleName:            {authtypes.Burner},
+		ibctransfertypes.ModuleName:    {authtypes.Minter, authtypes.Burner},
 	}
 )
 
@@ -172,26 +169,16 @@ var (
 	_ servertypes.Application = (*App)(nil)
 )
 
-func init() {
-	userHomeDir, err := os.UserHomeDir()
-	if err != nil {
-		panic(err)
-	}
-
-	DefaultNodeHome = filepath.Join(userHomeDir, ".cheqdnode")
-}
-
 // App extends an ABCI application, but with most of its parameters exported.
 // They are exported for convenience in creating helper functions, as object
 // capabilities aren't needed for testing.
 type App struct {
 	*baseapp.BaseApp
 
-	cdc               *codec.LegacyAmino
+	legacyAnimo       *codec.LegacyAmino
 	appCodec          codec.Codec
 	interfaceRegistry types.InterfaceRegistry
-
-	invCheckPeriod uint
+	invCheckPeriod    uint
 
 	// keys to access the substores
 	keys    map[string]*sdk.KVStoreKey
@@ -210,21 +197,34 @@ type App struct {
 	CrisisKeeper     crisiskeeper.Keeper
 	UpgradeKeeper    upgradekeeper.Keeper
 	ParamsKeeper     paramskeeper.Keeper
-	EvidenceKeeper   evidencekeeper.Keeper
-	FeegrantKeeper   feegrantkeeper.Keeper
 	IBCKeeper        *ibckeeper.Keeper // IBC Keeper must be a pointer in the app, so we can SetRouter on it correctly
+	ICAHostKeeper    icahostkeeper.Keeper
+	EvidenceKeeper   evidencekeeper.Keeper
 	TransferKeeper   ibctransferkeeper.Keeper
+	FeeGrantKeeper   feegrantkeeper.Keeper
 	AuthzKeeper      authzkeeper.Keeper
 
 	// make scoped keepers public for test purposes
 	ScopedIBCKeeper      capabilitykeeper.ScopedKeeper
 	ScopedTransferKeeper capabilitykeeper.ScopedKeeper
+	ScopedICAHostKeeper  capabilitykeeper.ScopedKeeper
 
 	cheqdKeeper    cheqdkeeper.Keeper
 	resourceKeeper resourcekeeper.Keeper
 
 	// the module manager
 	mm *module.Manager
+
+	configurator module.Configurator
+}
+
+func init() {
+	userHomeDir, err := os.UserHomeDir()
+	if err != nil {
+		panic(err)
+	}
+
+	DefaultNodeHome = filepath.Join(userHomeDir, Home)
 }
 
 // New returns a reference to an initialized Gaia.
@@ -235,30 +235,46 @@ func New(
 	appOpts servertypes.AppOptions, baseAppOptions ...func(*baseapp.BaseApp),
 ) *App {
 	appCodec := encodingConfig.Codec
-	cdc := encodingConfig.Amino
+	legacyAmino := encodingConfig.Amino
 	interfaceRegistry := encodingConfig.InterfaceRegistry
 
-	bApp := baseapp.NewBaseApp(Name, logger, db, encodingConfig.TxConfig.TxDecoder(), baseAppOptions...)
+	bApp := baseapp.NewBaseApp(
+		Name,
+		logger,
+		db,
+		encodingConfig.TxConfig.TxDecoder(),
+		baseAppOptions...,
+	)
 	bApp.SetCommitMultiStoreTracer(traceStore)
 	bApp.SetVersion(version.Version)
-	bApp.SetProtocolVersion(ProtocolVersion)
 	bApp.SetInterfaceRegistry(interfaceRegistry)
 
 	keys := sdk.NewKVStoreKeys(
-		authtypes.StoreKey, banktypes.StoreKey, stakingtypes.StoreKey,
-		minttypes.StoreKey, distrtypes.StoreKey, slashingtypes.StoreKey,
-		govtypes.StoreKey, paramstypes.StoreKey, upgradetypes.StoreKey,
-		evidencetypes.StoreKey, capabilitytypes.StoreKey, feegrant.StoreKey,
-		ibchost.StoreKey, ibctransfertypes.StoreKey, authzkeeper.StoreKey,
-		cheqdtypes.StoreKey, resourcetypes.StoreKey,
+		authtypes.StoreKey,
+		banktypes.StoreKey,
+		stakingtypes.StoreKey,
+		minttypes.StoreKey,
+		distrtypes.StoreKey,
+		slashingtypes.StoreKey,
+		govtypes.StoreKey,
+		paramstypes.StoreKey,
+		ibchost.StoreKey,
+		upgradetypes.StoreKey,
+		evidencetypes.StoreKey,
+		ibctransfertypes.StoreKey,
+		capabilitytypes.StoreKey,
+		feegrant.StoreKey,
+		authzkeeper.StoreKey,
+		icahosttypes.StoreKey,
+		cheqdtypes.StoreKey,
+		resourcetypes.StoreKey,
 	)
-
 	tkeys := sdk.NewTransientStoreKeys(paramstypes.TStoreKey)
 	memKeys := sdk.NewMemoryStoreKeys(capabilitytypes.MemStoreKey)
 
 	app := &App{
 		BaseApp:           bApp,
-		cdc:               cdc,
+		legacyAnimo:       legacyAmino,
 		appCodec:          appCodec,
 		interfaceRegistry: interfaceRegistry,
 		invCheckPeriod:    invCheckPeriod,
@@ -267,10 +283,12 @@ func New(
 		memKeys:           memKeys,
 	}
 
-	app.ParamsKeeper = initParamsKeeper(appCodec, cdc, keys[paramstypes.StoreKey], tkeys[paramstypes.TStoreKey])
+	app.ParamsKeeper = initParamsKeeper(appCodec, legacyAmino, keys[paramstypes.StoreKey], tkeys[paramstypes.TStoreKey])
 
 	// set the BaseApp's parameter store
-	bApp.SetParamStore(app.ParamsKeeper.Subspace(baseapp.Paramspace).WithKeyTable(paramskeeper.ConsensusParamsKeyTable()))
+	bApp.SetParamStore(
+		app.ParamsKeeper.Subspace(baseapp.Paramspace).WithKeyTable(paramskeeper.ConsensusParamsKeyTable()),
+	)
 
 	// add capability keeper and ScopeToModule for ibc module
 	app.CapabilityKeeper = capabilitykeeper.NewKeeper(appCodec, keys[capabilitytypes.StoreKey], memKeys[capabilitytypes.MemStoreKey])
@@ -278,6 +296,7 @@ func New(
 	// grant capabilities for the ibc and ibc-transfer modules
 	scopedIBCKeeper := app.CapabilityKeeper.ScopeToModule(ibchost.ModuleName)
 	scopedTransferKeeper := app.CapabilityKeeper.ScopeToModule(ibctransfertypes.ModuleName)
+	scopedICAHostKeeper := app.CapabilityKeeper.ScopeToModule(icahosttypes.SubModuleName)
 
 	// Applications that wish to enforce statically created ScopedKeepers should call `Seal` after creating
 	// their scoped modules in `NewApp` with `ScopeToModule`
@@ -285,72 +304,99 @@ func New(
 
 	// add keepers
 	app.AccountKeeper = authkeeper.NewAccountKeeper(
-		appCodec, keys[authtypes.StoreKey], app.GetSubspace(authtypes.ModuleName), authtypes.ProtoBaseAccount, maccPerms,
+		appCodec,
+		keys[authtypes.StoreKey],
+		app.GetSubspace(authtypes.ModuleName),
+		authtypes.ProtoBaseAccount,
+		maccPerms,
 	)
+
 	app.BankKeeper = bankkeeper.NewBaseKeeper(
-		appCodec, keys[banktypes.StoreKey], app.AccountKeeper, app.GetSubspace(banktypes.ModuleName), app.ModuleAccountAddrs(),
+		appCodec,
+		keys[banktypes.StoreKey],
+		app.AccountKeeper,
+		app.GetSubspace(banktypes.ModuleName),
+		app.BlockedModuleAccountAddrs(),
+	)
+
+	app.AuthzKeeper = authzkeeper.NewKeeper(
+		keys[authzkeeper.StoreKey],
+		appCodec,
+		app.MsgServiceRouter(),
+	)
+
+	app.FeeGrantKeeper = feegrantkeeper.NewKeeper(
+		appCodec,
+		keys[feegrant.StoreKey],
+		app.AccountKeeper,
 	)
+
 	stakingKeeper := stakingkeeper.NewKeeper(
-		appCodec, keys[stakingtypes.StoreKey], app.AccountKeeper, app.BankKeeper, app.GetSubspace(stakingtypes.ModuleName),
+		appCodec,
+		keys[stakingtypes.StoreKey],
+		app.AccountKeeper,
+		app.BankKeeper,
+		app.GetSubspace(stakingtypes.ModuleName),
 	)
+
 	app.MintKeeper = mintkeeper.NewKeeper(
-		appCodec, keys[minttypes.StoreKey], app.GetSubspace(minttypes.ModuleName), &stakingKeeper,
-		app.AccountKeeper, app.BankKeeper, authtypes.FeeCollectorName,
+		appCodec,
+		keys[minttypes.StoreKey],
+		app.GetSubspace(minttypes.ModuleName),
+		&stakingKeeper,
+		app.AccountKeeper,
+		app.BankKeeper,
+		authtypes.FeeCollectorName,
 	)
+
 	app.DistrKeeper = distrkeeper.NewKeeper(
-		appCodec, keys[distrtypes.StoreKey], app.GetSubspace(distrtypes.ModuleName), app.AccountKeeper, app.BankKeeper,
-		&stakingKeeper, authtypes.FeeCollectorName, app.ModuleAccountAddrs(),
+		appCodec, keys[distrtypes.StoreKey],
+		app.GetSubspace(distrtypes.ModuleName),
+		app.AccountKeeper,
+		app.BankKeeper,
+		&stakingKeeper,
+		authtypes.FeeCollectorName,
+		app.BlockedModuleAccountAddrs(),
 	)
+
 	app.SlashingKeeper = slashingkeeper.NewKeeper(
-		appCodec, keys[slashingtypes.StoreKey], &stakingKeeper, app.GetSubspace(slashingtypes.ModuleName),
+		appCodec,
+		keys[slashingtypes.StoreKey],
+		&stakingKeeper,
+		app.GetSubspace(slashingtypes.ModuleName),
 	)
+
 	app.CrisisKeeper = crisiskeeper.NewKeeper(
-		app.GetSubspace(crisistypes.ModuleName), invCheckPeriod, app.BankKeeper, authtypes.FeeCollectorName,
+		app.GetSubspace(crisistypes.ModuleName),
+		invCheckPeriod,
+		app.BankKeeper,
+		authtypes.FeeCollectorName,
 	)
 
-	app.UpgradeKeeper = upgradekeeper.NewKeeper(skipUpgradeHeights, keys[upgradetypes.StoreKey], appCodec, homePath, app.BaseApp)
-
-	// Latest upgrade handler
-	app.UpgradeKeeper.SetUpgradeHandler("v0.6", func(ctx sdk.Context, plan upgradetypes.Plan, fromVM module.VersionMap) (module.VersionMap, error) {
-		ctx.Logger().Info("Handler for upgrade plan: v0.6")
-
-		ctx.Logger().Info("start to run module migrations...")
-		return fromVM, nil
-	})
-
-	// Store migration for the latest upgrade
-	upgradeInfo, err := app.UpgradeKeeper.ReadUpgradeInfoFromDisk()
-	if err != nil {
-		panic(err)
-	}
-
-	if upgradeInfo.Name == "v0.6" && !app.UpgradeKeeper.IsSkipHeight(upgradeInfo.Height) {
-		storeUpgrades := storetypes.StoreUpgrades{
-			Added: []string{
-				resourcetypes.StoreKey,
-			},
-		}
-
-		app.SetStoreLoader(upgradetypes.UpgradeStoreLoader(upgradeInfo.Height, &storeUpgrades))
-	}
-
 	// register the staking hooks
 	// NOTE: stakingKeeper above is passed by reference, so that it will contain these hooks
 	app.StakingKeeper = *stakingKeeper.SetHooks(
 		stakingtypes.NewMultiStakingHooks(app.DistrKeeper.Hooks(), app.SlashingKeeper.Hooks()),
 	)
 
-	// Create IBC Keeper
-	app.IBCKeeper = ibckeeper.NewKeeper(
-		appCodec, keys[ibchost.StoreKey], app.GetSubspace(ibchost.ModuleName), app.StakingKeeper, app.UpgradeKeeper, scopedIBCKeeper,
+	// UpgradeKeeper must be created before IBCKeeper
+	app.UpgradeKeeper = upgradekeeper.NewKeeper(
+		skipUpgradeHeights,
+		keys[upgradetypes.StoreKey],
+		appCodec,
+		homePath,
+		app.BaseApp,
 	)
 
-	app.FeegrantKeeper = feegrantkeeper.NewKeeper(appCodec, keys[feegrant.StoreKey], app.AccountKeeper)
-
-	authzKeeper := authzkeeper.NewKeeper(
-		keys[authzkeeper.StoreKey], appCodec, app.MsgServiceRouter(),
+	// Create IBC Keeper
+	app.IBCKeeper = ibckeeper.NewKeeper(
+		appCodec,
+		keys[ibchost.StoreKey],
+		app.GetSubspace(ibchost.ModuleName),
+		app.StakingKeeper,
+		app.UpgradeKeeper,
+		scopedIBCKeeper,
 	)
-	app.AuthzKeeper = authzKeeper
 
 	// register the proposal types
 	govRouter := govtypes.NewRouter()
@@ -360,18 +406,59 @@ func New(
 		AddRoute(upgradetypes.RouterKey, upgrade.NewSoftwareUpgradeProposalHandler(app.UpgradeKeeper)).
 		AddRoute(ibcclienttypes.RouterKey, ibcclient.NewClientProposalHandler(app.IBCKeeper.ClientKeeper))
 
+	app.GovKeeper = govkeeper.NewKeeper(
+		appCodec,
+		keys[govtypes.StoreKey],
+		app.GetSubspace(govtypes.ModuleName),
+		app.AccountKeeper,
+		app.BankKeeper,
+		&stakingKeeper,
+		govRouter,
+	)
+
 	// Create Transfer Keepers
 	app.TransferKeeper = ibctransferkeeper.NewKeeper(
-		appCodec, keys[ibctransfertypes.StoreKey], app.GetSubspace(ibctransfertypes.ModuleName),
-		app.IBCKeeper.ChannelKeeper, &app.IBCKeeper.PortKeeper,
-		app.AccountKeeper, app.BankKeeper, scopedTransferKeeper,
+		appCodec,
+		keys[ibctransfertypes.StoreKey],
+		app.GetSubspace(ibctransfertypes.ModuleName),
+		app.IBCKeeper.ChannelKeeper,
+		app.IBCKeeper.ChannelKeeper,
+		&app.IBCKeeper.PortKeeper,
+		app.AccountKeeper,
+		app.BankKeeper,
+		scopedTransferKeeper,
 	)
 	transferModule := transfer.NewAppModule(app.TransferKeeper)
+	transferIBCModule := transfer.NewIBCModule(app.TransferKeeper)
+
+	// Create IBC Host Keepers
+	app.ICAHostKeeper = icahostkeeper.NewKeeper(
+		appCodec, keys[icahosttypes.StoreKey],
+		app.GetSubspace(icahosttypes.SubModuleName),
+		app.IBCKeeper.ChannelKeeper,
+		&app.IBCKeeper.PortKeeper,
+		app.AccountKeeper,
+		scopedICAHostKeeper,
+		app.MsgServiceRouter(),
+	)
+	icaModule := ica.NewAppModule(nil, &app.ICAHostKeeper)
+	icaHostIBCModule := icahost.NewIBCModule(app.ICAHostKeeper)
+
+	// Create static IBC router, add transfer route, then set and seal it
+	ibcRouter := porttypes.NewRouter()
+	ibcRouter.AddRoute(ibctransfertypes.ModuleName, transferIBCModule).
+		AddRoute(icahosttypes.SubModuleName, icaHostIBCModule)
+
+	app.IBCKeeper.SetRouter(ibcRouter)
 
 	// Create evidence Keeper for to register the IBC light client misbehaviour evidence route
 	evidenceKeeper := evidencekeeper.NewKeeper(
-		appCodec, keys[evidencetypes.StoreKey], &app.StakingKeeper, app.SlashingKeeper,
+		appCodec,
+		keys[evidencetypes.StoreKey],
+		&app.StakingKeeper,
+		app.SlashingKeeper,
 	)
+
 	// If evidence needs to be handled for the app, set routes in router here and seal
 	app.EvidenceKeeper = *evidenceKeeper
 
@@ -383,25 +470,12 @@ func New(
 		appCodec, keys[resourcetypes.StoreKey],
 	)
 
-	app.GovKeeper = govkeeper.NewKeeper(
-		appCodec, keys[govtypes.StoreKey], app.GetSubspace(govtypes.ModuleName), app.AccountKeeper, app.BankKeeper,
-		&stakingKeeper, govRouter,
-	)
-
-	// Create static IBC router, add transfer route, then set and seal it
-	ibcRouter := porttypes.NewRouter()
-	ibcRouter.AddRoute(ibctransfertypes.ModuleName, transferModule)
-	app.IBCKeeper.SetRouter(ibcRouter)
-
-	/****  Module Options ****/
-
 	// NOTE: we may consider parsing `appOpts` inside module constructors. For the moment
 	// we prefer to be more strict in what arguments the modules expect.
 	skipGenesisInvariants := cast.ToBool(appOpts.Get(crisis.FlagSkipGenesisInvariants))
 
 	// NOTE: Any module instantiated in the module manager that is later modified
 	// must be passed by reference here.
-
 	app.mm = module.NewManager(
 		genutil.NewAppModule(
 			app.AccountKeeper, app.StakingKeeper, app.BaseApp.DeliverTx,
@@ -419,13 +493,14 @@ func New(
 		staking.NewAppModule(appCodec, app.StakingKeeper, app.AccountKeeper, app.BankKeeper),
 		upgrade.NewAppModule(app.UpgradeKeeper),
 		evidence.NewAppModule(app.EvidenceKeeper),
-		params.NewAppModule(app.ParamsKeeper),
-		feegrantmodule.NewAppModule(appCodec, app.AccountKeeper, app.BankKeeper, app.FeegrantKeeper, app.interfaceRegistry),
+		feegrantmodule.NewAppModule(appCodec, app.AccountKeeper, app.BankKeeper, app.FeeGrantKeeper, app.interfaceRegistry),
 		authzmodule.NewAppModule(appCodec, app.AuthzKeeper, app.AccountKeeper, app.BankKeeper, app.interfaceRegistry),
-		cheqd.NewAppModule(appCodec, app.cheqdKeeper),
-		resource.NewAppModule(appCodec, app.resourceKeeper, app.cheqdKeeper),
 		ibc.NewAppModule(app.IBCKeeper),
+		params.NewAppModule(app.ParamsKeeper),
 		transferModule,
+		icaModule,
+		cheqd.NewAppModule(appCodec, app.cheqdKeeper),
+		resource.NewAppModule(appCodec, app.resourceKeeper, app.cheqdKeeper),
 	)
 
 	// During begin block slashing happens after distr.BeginBlocker so that
@@ -441,19 +516,20 @@ func New(
 		slashingtypes.ModuleName,
 		evidencetypes.ModuleName,
 		stakingtypes.ModuleName,
-		ibchost.ModuleName,
-		cheqdtypes.ModuleName,
-		resourcetypes.ModuleName,
-		genutiltypes.ModuleName,
+		authtypes.ModuleName,
 		banktypes.ModuleName,
+		govtypes.ModuleName,
 		crisistypes.ModuleName,
+		ibchost.ModuleName,
 		ibctransfertypes.ModuleName,
-		govtypes.ModuleName,
-		feegrant.ModuleName,
+		icatypes.ModuleName,
+		genutiltypes.ModuleName,
 		authz.ModuleName,
+		feegrant.ModuleName,
 		paramstypes.ModuleName,
-		authtypes.ModuleName,
 		vestingtypes.ModuleName,
+		cheqdtypes.ModuleName,
+		resourcetypes.ModuleName,
 	)
 
 	app.mm.SetOrderEndBlockers(
@@ -472,6 +548,7 @@ func New(
 		genutiltypes.ModuleName,
 		banktypes.ModuleName,
 		ibctransfertypes.ModuleName,
+		icatypes.ModuleName,
 		feegrant.ModuleName,
 		authz.ModuleName,
 		paramstypes.ModuleName,
@@ -498,6 +575,7 @@ func New(
 		genutiltypes.ModuleName,
 		evidencetypes.ModuleName,
 		ibctransfertypes.ModuleName,
+		icatypes.ModuleName,
 		feegrant.ModuleName,
 		authz.ModuleName,
 		cheqdtypes.ModuleName,
@@ -507,64 +585,119 @@ func New(
 		paramstypes.ModuleName,
 	)
 
-	app.mm.SetOrderMigrations(
-		capabilitytypes.ModuleName,
-		authtypes.ModuleName,
-		banktypes.ModuleName,
-		distrtypes.ModuleName,
-		stakingtypes.ModuleName,
-		slashingtypes.ModuleName,
-		govtypes.ModuleName,
-		minttypes.ModuleName,
-		crisistypes.ModuleName,
-		ibchost.ModuleName,
-		genutiltypes.ModuleName,
-		evidencetypes.ModuleName,
-		ibctransfertypes.ModuleName,
-		feegrant.ModuleName,
-		authz.ModuleName,
-		cheqdtypes.ModuleName,
-		resourcetypes.ModuleName,
-		paramstypes.ModuleName,
-		vestingtypes.ModuleName,
-		upgradetypes.ModuleName,
-	)
+	// Uncomment if you want to set a custom migration order here.
+	// app.mm.SetOrderMigrations(custom order)
 
 	app.mm.RegisterInvariants(&app.CrisisKeeper)
 	app.mm.RegisterRoutes(app.Router(), app.QueryRouter(), encodingConfig.Amino)
-	app.mm.RegisterServices(module.NewConfigurator(app.appCodec, app.MsgServiceRouter(), app.GRPCQueryRouter()))
+
+	app.configurator = module.NewConfigurator(app.appCodec, app.MsgServiceRouter(), app.GRPCQueryRouter())
+	app.mm.RegisterServices(app.configurator)
 
 	// initialize stores
 	app.MountKVStores(keys)
 	app.MountTransientStores(tkeys)
 	app.MountMemoryStores(memKeys)
 
-	// initialize BaseApp
-	app.SetInitChainer(app.InitChainer)
-	app.SetBeginBlocker(app.BeginBlocker)
-
-	handlerOptions := ante.HandlerOptions{
+	anteHandler, err := ante.NewAnteHandler(ante.HandlerOptions{
 		AccountKeeper:   app.AccountKeeper,
 		BankKeeper:      app.BankKeeper,
-		FeegrantKeeper:  app.FeegrantKeeper,
+		FeegrantKeeper:  app.FeeGrantKeeper,
 		SignModeHandler: encodingConfig.TxConfig.SignModeHandler(),
 		SigGasConsumer:  ante.DefaultSigVerificationGasConsumer,
-	}
-
-	anteHandler, err := ante.NewAnteHandler(handlerOptions)
+	})
 	if err != nil {
 		tmos.Exit(err.Error())
 	}
 
 	app.SetAnteHandler(anteHandler)
+	app.SetInitChainer(app.InitChainer)
+	app.SetBeginBlocker(app.BeginBlocker)
 	app.SetEndBlocker(app.EndBlocker)
 
+	// Latest upgrade handler
+	app.UpgradeKeeper.SetUpgradeHandler(UpgradeName, func(ctx sdk.Context, plan upgradetypes.Plan, fromVM module.VersionMap) (module.VersionMap, error) {
+		ctx.Logger().Info("Handler for upgrade plan: v0.6")
+
+		// set the ICS27 consensus version so InitGenesis is not run
+		fromVM[icatypes.ModuleName] = icaModule.ConsensusVersion()
+
+		// create ICS27 Controller submodule params
+		controllerParams := icacontrollertypes.Params{
+			ControllerEnabled: true,
+		}
+
+		// create ICS27 Host submodule params
+		hostParams := icahosttypes.Params{
+			HostEnabled: true,
+			AllowMessages: []string{
+				authzMsgExec,
+				authzMsgGrant,
+				authzMsgRevoke,
+				bankMsgSend,
+				bankMsgMultiSend,
+				distrMsgSetWithdrawAddr,
+				distrMsgWithdrawValidatorCommission,
+				distrMsgFundCommunityPool,
+				distrMsgWithdrawDelegatorReward,
+				feegrantMsgGrantAllowance,
+				feegrantMsgRevokeAllowance,
+				govMsgVoteWeighted,
+				govMsgSubmitProposal,
+				govMsgDeposit,
+				govMsgVote,
+				stakingMsgEditValidator,
+				stakingMsgDelegate,
+				stakingMsgUndelegate,
+				stakingMsgBeginRedelegate,
+				stakingMsgCreateValidator,
+				vestingMsgCreateVestingAccount,
+				ibcMsgTransfer,
+			},
+		}
+
+		// initialize ICS27 module
+		ctx.Logger().Info("start to init interchainaccount module...")
+		icaModule.InitModule(ctx, controllerParams, hostParams)
+
+		ctx.Logger().Info("start to run module migrations...")
+		return fromVM, nil
+	})
+
+	// Store migration for the latest upgrade
+	upgradeInfo, err := app.UpgradeKeeper.ReadUpgradeInfoFromDisk()
+	if err != nil {
+		panic(err)
+	}
+
+	if upgradeInfo.Name == UpgradeName && !app.UpgradeKeeper.IsSkipHeight(upgradeInfo.Height) {
+		storeUpgrades := storetypes.StoreUpgrades{
+			Added: []string{
+				icahosttypes.StoreKey,
+				resourcetypes.StoreKey,
+			},
+		}
+
+		app.SetStoreLoader(upgradetypes.UpgradeStoreLoader(upgradeInfo.Height, &storeUpgrades))
+	}
+
+	// Test upgrade handler
+	app.UpgradeKeeper.SetUpgradeHandler(CosmovisorTestUpgrade, func(ctx sdk.Context, plan upgradetypes.Plan, fromVM module.VersionMap) (module.VersionMap, error) {
+		ctx.Logger().Info("Handler for upgrade plan: cosmovisor_test")
+
+		return fromVM, nil
+	})
+
 	if loadLatest {
 		if err := app.LoadLatestVersion(); err != nil {
-			tmos.Exit(err.Error())
+			panic(err)
 		}
 	}
 
+	app.ScopedIBCKeeper = scopedIBCKeeper
+	app.ScopedICAHostKeeper = scopedICAHostKeeper
+	app.ScopedTransferKeeper = scopedTransferKeeper
+
 	return app
 }
 
@@ -581,12 +714,6 @@ func (app *App) EndBlocker(ctx sdk.Context, req abci.RequestEndBlock) abci.Respo
 	return app.mm.EndBlock(ctx, req)
 }
 
-func (app *App) TestNetMigration(ctx sdk.Context) {
-	if ctx.ChainID() == "cheqd-testnet-2" {
-		app.cheqdKeeper.SetDidNamespace(&ctx, "testnet")
-	}
-}
-
 // InitChainer application update at chain initialization
 func (app *App) InitChainer(ctx sdk.Context, req abci.RequestInitChain) abci.ResponseInitChain {
 	// FIXME: This should have been done from the beginning.
@@ -616,12 +743,23 @@ func (app *App) ModuleAccountAddrs() map[string]bool {
 	return modAccAddrs
 }
 
+// BlockedModuleAccountAddrs returns all the app's blocked module account
+// addresses.
+func (app *App) BlockedModuleAccountAddrs() map[string]bool {
+	modAccAddrs := app.ModuleAccountAddrs()
+
+	// remove module accounts that are ALLOWED to received funds
+	delete(modAccAddrs, authtypes.NewModuleAddress(govtypes.ModuleName).String())
+
+	return modAccAddrs
+}
+
 // LegacyAmino returns SimApp's amino codec.
 //
 // NOTE: This is solely to be used for testing purposes as it may be desirable
 // for modules to register their own custom testing types.
 func (app *App) LegacyAmino() *codec.LegacyAmino {
-	return app.cdc
+	return app.legacyAnimo
 }
 
 // AppCodec returns Gaia's app codec.
@@ -670,12 +808,13 @@ func (app *App) GetSubspace(moduleName string) paramstypes.Subspace {
 // API server.
 func (app *App) RegisterAPIRoutes(apiSvr *api.Server, apiConfig config.APIConfig) {
 	clientCtx := apiSvr.ClientCtx
+
+	// Register legacy rpc and authrest routes
 	rpc.RegisterRoutes(clientCtx, apiSvr.Router)
-	// Register legacy tx routes.
 	authrest.RegisterTxRoutes(clientCtx, apiSvr.Router)
-	// Register new tx routes from grpc-gateway.
+
+	// Register new tx anr tendermint routes from grpc-gateway.
 	authtx.RegisterGRPCGatewayRoutes(clientCtx, apiSvr.GRPCGatewayRouter)
-	// Register new tendermint queries routes from grpc-gateway.
 	tmservice.RegisterGRPCGatewayRoutes(clientCtx, apiSvr.GRPCGatewayRouter)
 
 	// Register legacy and grpc-gateway routes for all modules.
@@ -709,15 +848,6 @@ func (app *App) RegisterTendermintService(clientCtx client.Context) {
 	tmservice.RegisterTendermintService(app.BaseApp.GRPCQueryRouter(), clientCtx, app.interfaceRegistry)
 }
 
-// GetMaccPerms returns a copy of the module account permissions
-func GetMaccPerms() map[string][]string {
-	dupMaccPerms := make(map[string][]string)
-	for k, v := range maccPerms {
-		dupMaccPerms[k] = v
-	}
-	return dupMaccPerms
-}
-
 // initParamsKeeper init params keeper and its subspaces
 func initParamsKeeper(appCodec codec.BinaryCodec, legacyAmino *codec.LegacyAmino, key, tkey sdk.StoreKey) paramskeeper.Keeper {
 	paramsKeeper := paramskeeper.NewKeeper(appCodec, legacyAmino, key, tkey)
@@ -730,8 +860,9 @@ func initParamsKeeper(appCodec codec.BinaryCodec, legacyAmino *codec.LegacyAmino
 	paramsKeeper.Subspace(slashingtypes.ModuleName)
 	paramsKeeper.Subspace(govtypes.ModuleName).WithKeyTable(govtypes.ParamKeyTable())
 	paramsKeeper.Subspace(crisistypes.ModuleName)
-	paramsKeeper.Subspace(ibctransfertypes.ModuleName)
 	paramsKeeper.Subspace(ibchost.ModuleName)
+	paramsKeeper.Subspace(ibctransfertypes.ModuleName)
+	paramsKeeper.Subspace(icahosttypes.SubModuleName)
 
 	return paramsKeeper
 }
diff --git a/app/const.go b/app/const.go
new file mode 100644
index 000000000..6d6fa8e17
--- /dev/null
+++ b/app/const.go
@@ -0,0 +1,33 @@
+package app
+
+const (
+	Name = "cheqd-node"
+	Home = ".cheqdnode"
+
+	UpgradeName           = "v0.6"
+	CosmovisorTestUpgrade = "cosmovisor_test"
+
+	// allowed msg types of ica host
+	authzMsgExec                        = "/cosmos.authz.v1beta1.MsgExec"
+	authzMsgGrant                       = "/cosmos.authz.v1beta1.MsgGrant"
+	authzMsgRevoke                      = "/cosmos.authz.v1beta1.MsgRevoke"
+	bankMsgSend                         = "/cosmos.bank.v1beta1.MsgSend"
+	bankMsgMultiSend                    = "/cosmos.bank.v1beta1.MsgMultiSend"
+	distrMsgSetWithdrawAddr             = "/cosmos.distribution.v1beta1.MsgSetWithdrawAddress"
+	distrMsgWithdrawValidatorCommission = "/cosmos.distribution.v1beta1.MsgWithdrawValidatorCommission"
+	distrMsgFundCommunityPool           = "/cosmos.distribution.v1beta1.MsgFundCommunityPool"
+	distrMsgWithdrawDelegatorReward     = "/cosmos.distribution.v1beta1.MsgWithdrawDelegatorReward"
+	feegrantMsgGrantAllowance           = "/cosmos.feegrant.v1beta1.MsgGrantAllowance"
+	feegrantMsgRevokeAllowance          = "/cosmos.feegrant.v1beta1.MsgRevokeAllowance"
+	govMsgVoteWeighted                  = "/cosmos.gov.v1beta1.MsgVoteWeighted"
+	govMsgSubmitProposal                = "/cosmos.gov.v1beta1.MsgSubmitProposal"
+	govMsgDeposit                       = "/cosmos.gov.v1beta1.MsgDeposit"
+	govMsgVote                          = "/cosmos.gov.v1beta1.MsgVote"
+	stakingMsgEditValidator             = "/cosmos.staking.v1beta1.MsgEditValidator"
+	stakingMsgDelegate                  = "/cosmos.staking.v1beta1.MsgDelegate"
+	stakingMsgUndelegate                = "/cosmos.staking.v1beta1.MsgUndelegate"
+	stakingMsgBeginRedelegate           = "/cosmos.staking.v1beta1.MsgBeginRedelegate"
+	stakingMsgCreateValidator           = "/cosmos.staking.v1beta1.MsgCreateValidator"
+	vestingMsgCreateVestingAccount      = "/cosmos.vesting.v1beta1.MsgCreateVestingAccount"
+	ibcMsgTransfer                      = "/ibc.applications.transfer.v1.MsgTransfer"
+)
diff --git a/app/encoding.go b/app/encoding.go
index 2ed725346..f390e831e 100644
--- a/app/encoding.go
+++ b/app/encoding.go
@@ -5,8 +5,11 @@ import (
 	"github.com/cosmos/cosmos-sdk/std"
 )
 
-// MakeEncodingConfig creates an EncodingConfig for testing
-func MakeEncodingConfig() params.EncodingConfig {
+// MakeTestEncodingConfig creates an EncodingConfig for testing. This function
+// should be used only in tests or when creating a new app instance (NewApp*()).
+// App user shouldn't create new codecs - use the app.AppCodec instead.
+// [DEPRECATED]
+func MakeTestEncodingConfig() params.EncodingConfig {
 	encodingConfig := params.MakeEncodingConfig()
 	std.RegisterLegacyAminoCodec(encodingConfig.Amino)
 	std.RegisterInterfaces(encodingConfig.InterfaceRegistry)
diff --git a/app/encoding_test.go b/app/encoding_test.go
index 5f3dc309b..acd26ab32 100644
--- a/app/encoding_test.go
+++ b/app/encoding_test.go
@@ -8,7 +8,7 @@ import (
 )
 
 func Test_MsgCreateDidPayload_UnmarshalJSON(t *testing.T) {
-	cdc := MakeEncodingConfig()
+	cdc := MakeTestEncodingConfig()
 
 	createPayloadJson := `{"id": "did:cheqd:alice"}`
 
diff --git a/cmd/cheqd-noded/cmd/root.go b/cmd/cheqd-noded/cmd/root.go
index df2a4865d..ec948b35c 100644
--- a/cmd/cheqd-noded/cmd/root.go
+++ b/cmd/cheqd-noded/cmd/root.go
@@ -46,7 +46,7 @@ func NewRootCmd() (*cobra.Command, params.EncodingConfig) {
 	// Set config for prefixes
 	app.SetConfig()
 
-	encodingConfig := app.MakeEncodingConfig()
+	encodingConfig := app.MakeTestEncodingConfig()
 	initClientCtx := client.Context{}.
 		WithCodec(encodingConfig.Codec).
 		WithInterfaceRegistry(encodingConfig.InterfaceRegistry).
diff --git a/go.mod b/go.mod
index ac059b06c..27f64d374 100644
--- a/go.mod
+++ b/go.mod
@@ -5,8 +5,8 @@ go 1.17
 require (
 	filippo.io/edwards25519 v1.0.0-beta.2
 	github.com/btcsuite/btcutil v1.0.3-0.20201208143702-a53e38424cce
-	github.com/cosmos/cosmos-sdk v0.45.6
-	github.com/cosmos/ibc-go v1.4.0
+	github.com/cosmos/cosmos-sdk v0.45.5
+	github.com/cosmos/ibc-go/v3 v3.1.0
 	github.com/gabriel-vasile/mimetype v1.4.0
 	github.com/go-ozzo/ozzo-validation/v4 v4.3.0
 	github.com/gogo/protobuf v1.3.3
@@ -139,7 +139,7 @@ require (
 )
 
 replace (
-	github.com/cosmos/cosmos-sdk => github.com/cheqd/cosmos-sdk v0.45.4-cheqd-tag
+	github.com/cosmos/cosmos-sdk => github.com/cheqd/cosmos-sdk v0.45.5-cheqd-tag
 
 	// Fix upstream GHSA-h395-qcrw-5vmq vulnerability.
 	github.com/gin-gonic/gin => github.com/gin-gonic/gin v1.7.0
diff --git a/go.sum b/go.sum
index 07046cfc7..c31311712 100644
--- a/go.sum
+++ b/go.sum
@@ -144,7 +144,6 @@ github.com/bgentry/speakeasy v0.1.0 h1:ByYyxL9InA1OWqxJqqp2A5pYHUrCiAL6K3J+LKSsQ
 github.com/bgentry/speakeasy v0.1.0/go.mod h1:+zsyZBPWlz7T6j88CTgSN5bM796AkVf0kBD4zp0CCIs=
 github.com/bits-and-blooms/bitset v1.2.0/go.mod h1:gIdJ4wp64HaoK2YrL1Q5/N7Y16edYb8uY+O0FJTyyDA=
 github.com/bketelsen/crypt v0.0.3-0.20200106085610-5cbc8cc4026c/go.mod h1:MKsuJmJgSg28kpZDP6UIiPt0e0Oz0kqKNGyRaWEPv84=
-github.com/bketelsen/crypt v0.0.4/go.mod h1:aI6NrJ0pMGgvZKL1iVgXLnfIFJtfV+bKCoqOes/6LfM=
 github.com/btcsuite/btcd v0.0.0-20171128150713-2e60448ffcc6/go.mod h1:Dmm/EzmjnCiweXmzRIAiUWCInVmPgjkzgv5k4tVyXiQ=
 github.com/btcsuite/btcd v0.0.0-20190115013929-ed77733ec07d/go.mod h1:d3C0AkH6BRcvO8T0UEPu53cnw4IbV63x1bEjildYhO0=
 github.com/btcsuite/btcd v0.0.0-20190315201642-aa6e0f35703c/go.mod h1:DrZx5ec/dmnfpw9KyYoQyYo7d0KEvTkk/5M/vbZjAr8=
@@ -180,8 +179,8 @@ github.com/cespare/xxhash/v2 v2.1.1/go.mod h1:VGX0DQ3Q6kWi7AoAeZDth3/j3BFtOZR5XL
 github.com/cespare/xxhash/v2 v2.1.2 h1:YRXhKfTDauu4ajMg1TPgFO5jnlC2HCbmLXMcTG5cbYE=
 github.com/cespare/xxhash/v2 v2.1.2/go.mod h1:VGX0DQ3Q6kWi7AoAeZDth3/j3BFtOZR5XLFGgcrjCOs=
 github.com/checkpoint-restore/go-criu/v5 v5.0.0/go.mod h1:cfwC0EG7HMUenopBsUf9d89JlCLQIfgVcNsNN0t6T2M=
-github.com/cheqd/cosmos-sdk v0.45.4-cheqd-tag h1:vQZAlbsqwPkC8DdwRI3TpRJ8ofoqKzAkPvHNzcrx9L0=
-github.com/cheqd/cosmos-sdk v0.45.4-cheqd-tag/go.mod h1:WOqtDxN3eCCmnYLVla10xG7lEXkFjpTaqm2a2WasgCc=
+github.com/cheqd/cosmos-sdk v0.45.5-cheqd-tag h1:Uky4sG2mlbQmEIIaXcpJMKwUQ3BkBJVz2HVjyAWtX0o=
+github.com/cheqd/cosmos-sdk v0.45.5-cheqd-tag/go.mod h1:WOqtDxN3eCCmnYLVla10xG7lEXkFjpTaqm2a2WasgCc=
 github.com/chzyer/logex v1.1.10/go.mod h1:+Ywpsq7O8HXn0nuIou7OrIPyXbp3wmkHB+jjWRnGsAI=
 github.com/chzyer/readline v0.0.0-20180603132655-2972be24d48e/go.mod h1:nSuG5e5PlCu98SY8svDHJxuZscDgtXS6KTTbou5AhLI=
 github.com/chzyer/test v0.0.0-20180213035817-a1ea475d72b1/go.mod h1:Q3SI9o4m/ZMnBNeIyt5eFwwo7qiLfzFZmjNmxjkiQlU=
@@ -227,8 +226,8 @@ github.com/cosmos/gorocksdb v1.2.0 h1:d0l3jJG8M4hBouIZq0mDUHZ+zjOx044J3nGRskwTb4
 github.com/cosmos/gorocksdb v1.2.0/go.mod h1:aaKvKItm514hKfNJpUJXnnOWeBnk2GL4+Qw9NHizILw=
 github.com/cosmos/iavl v0.17.3 h1:s2N819a2olOmiauVa0WAhoIJq9EhSXE9HDBAoR9k+8Y=
 github.com/cosmos/iavl v0.17.3/go.mod h1:prJoErZFABYZGDHka1R6Oay4z9PrNeFFiMKHDAMOi4w=
-github.com/cosmos/ibc-go v1.4.0 h1:oQIFITF4oOkQNTHkKTan1e4ozvFAp34z1rnIbEnn/e0=
-github.com/cosmos/ibc-go v1.4.0/go.mod h1:Ntn57AowrB7bmhFKFrmXbysf290sAZHHBpwZMyNh/vo=
+github.com/cosmos/ibc-go/v3 v3.1.0 h1:aVPqkrGBluz6t9+d/sLZIG/zQ9O1KJzVeR4UlL/IFTQ=
+github.com/cosmos/ibc-go/v3 v3.1.0/go.mod h1:DbOlOa4yKumaHGKApKkJN90L88PCjSD9ZBdAfL9tT40=
 github.com/cosmos/ledger-cosmos-go v0.11.1 h1:9JIYsGnXP613pb2vPjFeMMjBI5lEDsEaF6oYorTy6J4=
 github.com/cosmos/ledger-cosmos-go v0.11.1/go.mod h1:J8//BsAGTo3OC/vDLjMRFLW6q0WAaXvHnVc7ZmE8iUY=
 github.com/cosmos/ledger-go v0.9.2 h1:Nnao/dLwaVTk1Q5U9THldpUMMXU94BOTWPddSmVB6pI=
@@ -691,7 +690,6 @@ github.com/mitchellh/iochan v1.0.0/go.mod h1:JwYml1nuB7xOzsp52dPpHFffvOCDupsG0Qu
 github.com/mitchellh/mapstructure v0.0.0-20160808181253-ca63d7c062ee/go.mod h1:FVVH3fgwuzCH5S8UJGiWEs2h04kUh9fWfEaFds41c1Y=
 github.com/mitchellh/mapstructure v1.1.2/go.mod h1:FVVH3fgwuzCH5S8UJGiWEs2h04kUh9fWfEaFds41c1Y=
 github.com/mitchellh/mapstructure v1.3.3/go.mod h1:bFUtVrKA4DC2yAKiSyO/QUcy7e+RRV2QTWOzhPopBRo=
-github.com/mitchellh/mapstructure v1.4.1/go.mod h1:bFUtVrKA4DC2yAKiSyO/QUcy7e+RRV2QTWOzhPopBRo=
 github.com/mitchellh/mapstructure v1.4.2/go.mod h1:bFUtVrKA4DC2yAKiSyO/QUcy7e+RRV2QTWOzhPopBRo=
 github.com/mitchellh/mapstructure v1.4.3 h1:OVowDSCllw/YjdLkam3/sm7wEtOy59d8ndGgCcyj8cs=
 github.com/mitchellh/mapstructure v1.4.3/go.mod h1:bFUtVrKA4DC2yAKiSyO/QUcy7e+RRV2QTWOzhPopBRo=
@@ -798,7 +796,6 @@ github.com/pascaldekloe/goe v0.1.0/go.mod h1:lzWF7FIEvWOWxwDKqyGYQf6ZUaNfKdP144T
 github.com/pborman/uuid v0.0.0-20170112150404-1b00554d8222/go.mod h1:VyrYX9gd7irzKovcSS6BIIEwPRkP2Wm2m9ufcdFSJ34=
 github.com/pborman/uuid v1.2.0/go.mod h1:X/NO0urCmaxf9VXbdlT7C2Yzkj2IKimNn4k+gtPdI/k=
 github.com/pelletier/go-toml v1.2.0/go.mod h1:5z9KED0ma1S8pY6P1sdut58dfprrGBbd/94hg7ilaic=
-github.com/pelletier/go-toml v1.9.3/go.mod h1:u1nR/EPcESfeI/szUZKdtJ0xRNbUoANCkoOuaOx1Y+c=
 github.com/pelletier/go-toml v1.9.4 h1:tjENF6MfZAg8e4ZmZTeWaWiT2vXtsoO6+iuOjFhECwM=
 github.com/pelletier/go-toml v1.9.4/go.mod h1:u1nR/EPcESfeI/szUZKdtJ0xRNbUoANCkoOuaOx1Y+c=
 github.com/performancecopilot/speed v3.0.0+incompatible/go.mod h1:/CLtqpZ5gBg1M9iaPbIdPPGyKcA8hKdoy6hAWba7Yac=
@@ -918,14 +915,12 @@ github.com/spf13/afero v1.3.3/go.mod h1:5KUK8ByomD5Ti5Artl0RtHeI5pTF7MIDuXL3yY52
 github.com/spf13/afero v1.6.0 h1:xoax2sJ2DT8S8xA2paPFjDCScCNeWsg75VG0DLRreiY=
 github.com/spf13/afero v1.6.0/go.mod h1:Ai8FlHk4v/PARR026UzYexafAt9roJ7LcLMAmO6Z93I=
 github.com/spf13/cast v1.3.0/go.mod h1:Qx5cxh0v+4UWYiBimWS+eyWzqEqokIECu5etghLkUJE=
-github.com/spf13/cast v1.3.1/go.mod h1:Qx5cxh0v+4UWYiBimWS+eyWzqEqokIECu5etghLkUJE=
 github.com/spf13/cast v1.4.1 h1:s0hze+J0196ZfEMTs80N7UlFt0BDuQ7Q+JDnHiMWKdA=
 github.com/spf13/cast v1.4.1/go.mod h1:Qx5cxh0v+4UWYiBimWS+eyWzqEqokIECu5etghLkUJE=
 github.com/spf13/cobra v0.0.3/go.mod h1:1l0Ry5zgKvJasoi3XT1TypsSe7PqH0Sj9dhYf7v3XqQ=
 github.com/spf13/cobra v0.0.5/go.mod h1:3K3wKZymM7VvHMDS9+Akkh4K60UwM26emMESw8tLCHU=
 github.com/spf13/cobra v1.0.0/go.mod h1:/6GTrnGXV9HjY+aR4k0oJ5tcvakLuG6EuKReYlHNrgE=
 github.com/spf13/cobra v1.1.1/go.mod h1:WnodtKOvamDL/PwE2M4iKs8aMDBZ5Q5klgD3qfVJQMI=
-github.com/spf13/cobra v1.2.1/go.mod h1:ExllRjgxM/piMAM+3tAZvg8fsklGAf3tPfi+i8t68Nk=
 github.com/spf13/cobra v1.4.0/go.mod h1:Wo4iy3BUC+X2Fybo0PDqwJIv3dNRiZLHQymsfxlB84g=
 github.com/spf13/cobra v1.5.0 h1:X+jTBEBqF0bHN+9cSMgmfuvv2VHJ9ezmFNf9Y/XstYU=
 github.com/spf13/cobra v1.5.0/go.mod h1:dWXEIy2H428czQCjInthrTRUg7yKbok+2Qi/yBIJoUM=
@@ -940,7 +935,6 @@ github.com/spf13/viper v1.3.2/go.mod h1:ZiWeW+zYFKm7srdB9IoDzzZXaJaI5eL9QjNiN/DM
 github.com/spf13/viper v1.4.0/go.mod h1:PTJ7Z/lr49W6bUbkmS1V3by4uWynFiR9p7+dSq/yZzE=
 github.com/spf13/viper v1.7.0/go.mod h1:8WkrPz2fc9jxqZNCJI/76HCieCp4Q8HaLFoCha5qpdg=
 github.com/spf13/viper v1.7.1/go.mod h1:8WkrPz2fc9jxqZNCJI/76HCieCp4Q8HaLFoCha5qpdg=
-github.com/spf13/viper v1.8.1/go.mod h1:o0Pch8wJ9BVSWGQMbra6iw0oQ5oktSIBaujf1rJH9Ns=
 github.com/spf13/viper v1.10.1 h1:nuJZuYpG7gTj/XqiUwg8bA0cp1+M2mC3J4g5luUYBKk=
 github.com/spf13/viper v1.10.1/go.mod h1:IGlFPqhNAPKRxohIzWpI5QEy4kuI7tcl5WvR+8qy1rU=
 github.com/status-im/keycard-go v0.0.0-20190316090335-8537d3370df4/go.mod h1:RZLeN1LMWmRsyYjvAu+I6Dm9QmlDaIIt+Y+4Kd7Tp+Q=
@@ -1199,7 +1193,6 @@ golang.org/x/oauth2 v0.0.0-20201208152858-08078c50e5b5/go.mod h1:KelEdhl1UZF7XfJ
 golang.org/x/oauth2 v0.0.0-20210218202405-ba52d332ba99/go.mod h1:KelEdhl1UZF7XfJ4dDtk6s++YSgaE7mD/BuKKDLBl4A=
 golang.org/x/oauth2 v0.0.0-20210220000619-9bb904979d93/go.mod h1:KelEdhl1UZF7XfJ4dDtk6s++YSgaE7mD/BuKKDLBl4A=
 golang.org/x/oauth2 v0.0.0-20210313182246-cd4f82c27b84/go.mod h1:KelEdhl1UZF7XfJ4dDtk6s++YSgaE7mD/BuKKDLBl4A=
-golang.org/x/oauth2 v0.0.0-20210402161424-2e8d93401602/go.mod h1:KelEdhl1UZF7XfJ4dDtk6s++YSgaE7mD/BuKKDLBl4A=
 golang.org/x/oauth2 v0.0.0-20210514164344-f6687ab2804c/go.mod h1:KelEdhl1UZF7XfJ4dDtk6s++YSgaE7mD/BuKKDLBl4A=
 golang.org/x/oauth2 v0.0.0-20210628180205-a41e5a781914/go.mod h1:KelEdhl1UZF7XfJ4dDtk6s++YSgaE7mD/BuKKDLBl4A=
 golang.org/x/oauth2 v0.0.0-20210805134026-6f1e6394065a/go.mod h1:KelEdhl1UZF7XfJ4dDtk6s++YSgaE7mD/BuKKDLBl4A=
@@ -1431,7 +1424,6 @@ google.golang.org/api v0.36.0/go.mod h1:+z5ficQTmoYpPn8LCUNVpK5I7hwkpjbcgqA7I34q
 google.golang.org/api v0.40.0/go.mod h1:fYKFpnQN0DsDSKRVRcQSDQNtqWPfM9i+zNPxepjRCQ8=
 google.golang.org/api v0.41.0/go.mod h1:RkxM5lITDfTzmyKFPt+wGrCJbVfniCr2ool8kTBzRTU=
 google.golang.org/api v0.43.0/go.mod h1:nQsDGjRXMo4lvh5hP0TKqF244gqhGcr/YSIykhUk/94=
-google.golang.org/api v0.44.0/go.mod h1:EBOGZqzyhtvMDoxwS97ctnh0zUmYY6CxqXsc1AvkYD8=
 google.golang.org/api v0.47.0/go.mod h1:Wbvgpq1HddcWVtzsVLyfLp8lDg6AA241LmgIL59tHXo=
 google.golang.org/api v0.48.0/go.mod h1:71Pr1vy+TAZRPkPs/xlCf5SsU8WjuAWv1Pfjbtukyy4=
 google.golang.org/api v0.50.0/go.mod h1:4bNT5pAuq5ji4SRZm+5QIkjny9JAyVD/3gaSihNefaw=
@@ -1552,8 +1544,6 @@ gopkg.in/errgo.v2 v2.1.0/go.mod h1:hNsd1EY+bozCKY1Ytp96fpM3vjJbqLJn88ws8XvfDNI=
 gopkg.in/fsnotify.v1 v1.4.7/go.mod h1:Tz8NjZHkW78fSQdbUxIjBTcgA1z1m8ZHf0WmKUhAMys=
 gopkg.in/gcfg.v1 v1.2.3/go.mod h1:yesOnuUOFQAhST5vPY4nbZsb/huCgGGXlipJsBn0b3o=
 gopkg.in/ini.v1 v1.51.0/go.mod h1:pNLf8WUiyNEtQjuu5G5vTm06TEv9tsIgeAvK8hOrP4k=
-gopkg.in/ini.v1 v1.62.0/go.mod h1:pNLf8WUiyNEtQjuu5G5vTm06TEv9tsIgeAvK8hOrP4k=
-gopkg.in/ini.v1 v1.63.2/go.mod h1:pNLf8WUiyNEtQjuu5G5vTm06TEv9tsIgeAvK8hOrP4k=
 gopkg.in/ini.v1 v1.66.2 h1:XfR1dOYubytKy4Shzc2LHrrGhU0lDCfDGG1yLPmpgsI=
 gopkg.in/ini.v1 v1.66.2/go.mod h1:pNLf8WUiyNEtQjuu5G5vTm06TEv9tsIgeAvK8hOrP4k=
 gopkg.in/natefinch/npipe.v2 v2.0.0-20160621034901-c1b8fa8bdcce/go.mod h1:5AcXVHNjg+BDxry382+8OKon8SEWiKktQR07RKPsv1c=
diff --git a/tests/e2e-complex/ibc-defi/cheqd/cheqd_init.sh b/tests/e2e-complex/ibc-defi/cheqd/cheqd-init.sh
similarity index 100%
rename from tests/e2e-complex/ibc-defi/cheqd/cheqd_init.sh
rename to tests/e2e-complex/ibc-defi/cheqd/cheqd-init.sh
diff --git a/tests/e2e-complex/ibc-defi/cheqd/cheqd.Dockerfile b/tests/e2e-complex/ibc-defi/cheqd/cheqd.Dockerfile
deleted file mode 100644
index e0f1566fb..000000000
--- a/tests/e2e-complex/ibc-defi/cheqd/cheqd.Dockerfile
+++ /dev/null
@@ -1,59 +0,0 @@
-#####  Build container  #####
-
-FROM golang:buster as builder
-
-RUN apt-get update && export DEBIAN_FRONTEND=noninteractive \
-    && apt-get -y install --no-install-recommends \
-    curl \
-    protobuf-compiler \
-    libprotobuf-dev \
-    wget \
-    git \
-    nano
-
-# Starport
-# RUN curl https://get.starport.network/starport! | bash
-# There is an issue with the latest starport, especially 0.18 version
-SHELL ["/bin/bash", "-euo", "pipefail", "-c"]
-
-RUN wget -qO- https://github.com/tendermint/starport/releases/download/v0.18.6/starport_0.18.6_linux_amd64.tar.gz | tar xvz -C /tmp/ && cp /tmp/starport /usr/bin
-
-# App
-WORKDIR /app
-
-RUN git clone --depth 1 --branch v0.3.1 https://github.com/cheqd/cheqd-node
-
-WORKDIR /app/cheqd-node
-
-RUN starport chain build
-
-
-#####  Run container  #####
-
-FROM debian:buster
-
-RUN apt-get update && export DEBIAN_FRONTEND=noninteractive \
-    && apt-get -y install --no-install-recommends \
-    nano \
-    curl \
-    wget \
-    netcat
-
-# Node binary
-COPY --from=builder /go/bin/cheqd-noded /bin
-
-RUN groupadd --system --gid 1000 cheqd && \
-    useradd --system --create-home --home-dir /cheqd --shell /bin/bash --gid cheqd --uid 1000 cheqd
-RUN chown -R cheqd /cheqd
-
-WORKDIR /cheqd
-USER cheqd
-
-EXPOSE 26656 26657
-STOPSIGNAL SIGTERM
-
-# Init network
-COPY cheqd_init.sh .
-RUN bash cheqd_init.sh
-
-ENTRYPOINT [ "cheqd-noded", "start" ]
diff --git a/tests/e2e-complex/ibc-defi/docker-compose.yaml b/tests/e2e-complex/ibc-defi/docker-compose.yaml
index e4acb0da0..bc1808be8 100644
--- a/tests/e2e-complex/ibc-defi/docker-compose.yaml
+++ b/tests/e2e-complex/ibc-defi/docker-compose.yaml
@@ -1,34 +1,44 @@
-version: '3.2'
+version: '3.7'
 
 services:
   cheqd:
     image: cheqd
     build:
-      context: ./cheqd
-      dockerfile: cheqd.Dockerfile
+      context: ../../..
+      dockerfile: docker/Dockerfile
+      target: base
     ports:
       - "26656:26656" # p2p
       - "26657:26657" # rpc
       - "9090:9090" # grpc
       - "9091:9091" # grpc-web
+    entrypoint: tail -f /dev/null
 
   osmosis:
     image: osmosis
     build:
-      context: ./osmosis
+      context: osmosis
       dockerfile: osmosis.Dockerfile
     ports:
       - "26666:26656" # p2p
       - "26667:26657" # rpc
       - "9190:9090" # grpc
       - "9191:9091" # grpc-web
+    entrypoint: tail -f /dev/null
 
   hermes:
     image: hermes
     build:
       context: ./hermes
       dockerfile: hermes.Dockerfile
+    configs:
+      - source: hermes-config
+        target: /hermes/.hermes/config.toml
     ports:
       - "3000:3000" # rest
       - "3001:3001" # telemetry
     entrypoint: tail -f /dev/null
+
+configs:
+  hermes-config:
+    file: ./hermes/config.toml
diff --git a/tests/e2e-complex/ibc-defi/gravity/gravity.Dockerfile b/tests/e2e-complex/ibc-defi/gravity/gravity.Dockerfile
deleted file mode 100644
index 644f761ec..000000000
--- a/tests/e2e-complex/ibc-defi/gravity/gravity.Dockerfile
+++ /dev/null
@@ -1,52 +0,0 @@
-#####  Build container  #####
-
-FROM golang:buster as builder
-
-RUN apt-get update && export DEBIAN_FRONTEND=noninteractive \
-    && apt-get -y install --no-install-recommends \
-    curl \
-    protobuf-compiler \
-    libprotobuf-dev \
-    wget \
-    git \
-    nano
-
-# App
-WORKDIR /app
-
-RUN git clone --depth 1 --branch v1.4.0 https://github.com/tendermint/liquidity
-
-WORKDIR /app/liquidity
-
-RUN make install
-
-
-#####  Run container  #####
-
-FROM debian:buster
-
-RUN apt-get update && export DEBIAN_FRONTEND=noninteractive \
-    && apt-get -y install --no-install-recommends \
-    nano \
-    curl \
-    wget \
-    netcat
-
-# Node binary
-COPY --from=builder /go/bin/liquidityd /bin
-
-RUN groupadd --system --gid 1000 gravity && \
-    useradd --system --create-home --home-dir /gravity --shell /bin/bash --gid gravity --uid 1000 gravity
-RUN chown -R gravity /gravity
-
-WORKDIR /gravity
-USER gravity
-
-EXPOSE 26656 26657
-STOPSIGNAL SIGTERM
-
-# Init network
-COPY gravity_init.sh .
-RUN bash gravity_init.sh
-
-ENTRYPOINT [ "liquidityd", "start" ]
diff --git a/tests/e2e-complex/ibc-defi/gravity/gravity_init.sh b/tests/e2e-complex/ibc-defi/gravity/gravity_init.sh
deleted file mode 100755
index c4a03de8b..000000000
--- a/tests/e2e-complex/ibc-defi/gravity/gravity_init.sh
+++ /dev/null
@@ -1,30 +0,0 @@
-#!/bin/bash
-
-set -euox pipefail
-
-# sed in macos requires extra argument
-
-if [[ "$OSTYPE" == "linux-gnu"* ]]; then
-    sed_extension=''
-elif [[ "$OSTYPE" == "darwin"* ]]; then
-    sed_extension='.orig'
-fi
-
-CHAIN_ID="gravity"
-
-# Node
-liquidityd init node0 --chain-id $CHAIN_ID
-NODE_0_VAL_PUBKEY=$(liquidityd tendermint show-validator)
-
-# User
-liquidityd keys add gravity-user --keyring-backend test
-
-# Config
-sed -i $sed_extension 's|minimum-gas-prices = ""|minimum-gas-prices = "0stake"|g' "$HOME/.liquidityapp/config/app.toml"
-sed -i $sed_extension 's|laddr = "tcp://127.0.0.1:26657"|laddr = "tcp://0.0.0.0:26657"|g' "$HOME/.liquidityapp/config/config.toml"
-
-liquidityd add-genesis-account gravity-user 1000000000stake --keyring-backend test
-liquidityd gentx gravity-user 1000000000stake --chain-id $CHAIN_ID --pubkey "$NODE_0_VAL_PUBKEY"  --keyring-backend test
-
-liquidityd collect-gentxs
-liquidityd validate-genesis
diff --git a/tests/e2e-complex/ibc-defi/hermes/config.toml b/tests/e2e-complex/ibc-defi/hermes/config.toml
index 156e7bc51..4a0f513ed 100644
--- a/tests/e2e-complex/ibc-defi/hermes/config.toml
+++ b/tests/e2e-complex/ibc-defi/hermes/config.toml
@@ -21,7 +21,6 @@ enabled = false
 enabled = true
 clear_interval = 100
 clear_on_start = true
-filter = false
 tx_confirmation = true
 
 [rest]
@@ -44,12 +43,14 @@ account_prefix = 'cheqd'
 key_name = 'cheqd-key'
 address_type = { derivation = 'cosmos' }
 store_prefix = 'ibc'
-max_gas = 3000000
+default_gas = 100000
+max_gas = 2000000
 gas_price = { price = 25, denom = 'ncheq' }
 gas_adjustment = 0.1
 max_msg_num = 30
 max_tx_size = 2097152
 clock_drift = '5s'
+max_block_time = '30s'
 trusting_period = '14days'
 trust_threshold = { numerator = '1', denominator = '3' }
 
@@ -62,12 +63,14 @@ rpc_timeout = '10s'
 account_prefix = 'osmo'
 key_name = 'osmosis-key'
 store_prefix = 'ibc'
-max_gas = 3000000
+default_gas = 100000
+max_gas = 400000
 gas_price = { price = 0, denom = 'stake' }
 gas_adjustment = 0.1
 max_msg_num = 30
 max_tx_size = 2097152
 clock_drift = '5s'
+max_block_time = '30s'
 trusting_period = '14days'
 trust_threshold = { numerator = '1', denominator = '3' }
 address_type = { derivation = 'cosmos' }
diff --git a/tests/e2e-complex/ibc-defi/hermes/hermes.Dockerfile b/tests/e2e-complex/ibc-defi/hermes/hermes.Dockerfile
index b4231d386..7bd40b3fd 100644
--- a/tests/e2e-complex/ibc-defi/hermes/hermes.Dockerfile
+++ b/tests/e2e-complex/ibc-defi/hermes/hermes.Dockerfile
@@ -12,7 +12,7 @@ RUN apt-get update && export DEBIAN_FRONTEND=noninteractive \
 
 WORKDIR /app
 
-RUN git clone --depth 1 --branch v0.9.0 https://github.com/informalsystems/ibc-rs
+RUN git clone --depth 1 --branch v0.15.0 https://github.com/informalsystems/ibc-rs
 
 WORKDIR /app/ibc-rs
 
@@ -34,21 +34,18 @@ RUN apt-get update && export DEBIAN_FRONTEND=noninteractive \
 # Node binary
 COPY --from=builder /app/ibc-rs/target/release/hermes /bin
 
-# User
-RUN groupadd --system --gid 1000 hermes && \
-    useradd --system --create-home --home-dir /hermes --shell /bin/bash --gid hermes --uid 1000 hermes
+ARG USER=hermes
+ARG GROUP=hermes
 
-WORKDIR /hermes
+ARG HOME=/home/$USER
 
-# Init
-COPY hermes_init.sh .
-RUN bash hermes_init.sh
+# User
+RUN groupadd --system --gid 1000 $USER && \
+    useradd --system --create-home --home-dir $HOME --shell /bin/bash --gid $GROUP --uid 1000 $USER
 
-# Config
-RUN mkdir .hermes
-COPY config.toml .hermes
+WORKDIR $HOME
 
-RUN chown -R hermes /hermes
-USER hermes
+RUN chown -R $USER $HOME
+USER $USER
 
 ENTRYPOINT [ "hermes" ]
diff --git a/tests/e2e-complex/ibc-defi/hermes/hermes_init.sh b/tests/e2e-complex/ibc-defi/hermes/hermes_init.sh
deleted file mode 100755
index b34d77f65..000000000
--- a/tests/e2e-complex/ibc-defi/hermes/hermes_init.sh
+++ /dev/null
@@ -1,3 +0,0 @@
-#!/bin/bash
-
-set -euox pipefail
diff --git a/tests/e2e-complex/ibc-defi/ibc-transfer-test.sh b/tests/e2e-complex/ibc-defi/ibc-transfer-test.sh
index ce4e43e8b..c006c08ec 100755
--- a/tests/e2e-complex/ibc-defi/ibc-transfer-test.sh
+++ b/tests/e2e-complex/ibc-defi/ibc-transfer-test.sh
@@ -16,7 +16,7 @@ function err() {
 }
 
 function assert_tx_successful() {
-  RES=$1
+  RES="$1"
 
   if [[ $(echo "${RES}" | jq --raw-output '.code') == 0 ]]
   then
@@ -27,14 +27,51 @@ function assert_tx_successful() {
   fi
 }
 
+function assert_network_running() {
+  RES="$1"
+  LATEST_HEIGHT=$(echo "${RES}" | jq --raw-output '.SyncInfo.latest_block_height')
+  info "latest height: ${LATEST_HEIGHT}"
+
+  if [[ $LATEST_HEIGHT -gt 1 ]]
+  then
+      info "network is running"
+  else
+      err "network is not running"
+      exit 1
+  fi
+}
+
+
+info "Cleanup"
+docker-compose down --volumes --remove-orphans
+
+info "Running cheqd network"
+docker-compose up -d cheqd
+docker-compose cp cheqd/cheqd-init.sh cheqd:/home/cheqd/cheqd-init.sh
+docker-compose exec cheqd bash /home/cheqd/cheqd-init.sh
+docker-compose exec -d cheqd cheqd-noded start
+
+info "Running osmosis network"
+docker-compose up -d osmosis
+docker-compose cp osmosis/osmosis_init.sh osmosis:/home/osmosis/osmosis_init.sh
+docker-compose exec osmosis bash /home/osmosis/osmosis_init.sh
+docker-compose exec -d osmosis osmosisd start
+
+info "Waiting for chains"
+# TODO: Get rid of this
+sleep 10
+
+info "Checking statuses"
+CHEQD_STATUS=$(docker-compose exec cheqd cheqd-noded status 2>&1)
+assert_network_running "${CHEQD_STATUS}"
+
+OSMOSIS_STATUS=$(docker-compose exec osmosis osmosisd status 2>&1)
+assert_network_running "${OSMOSIS_STATUS}"
 
-info "Run docker" # ---
-docker-compose up --detach --build --force-recreate --remove-orphans
-sleep 15 # Wait for chains
 
 info "Create relayer user on cheqd"  # ---
 CHEQD_RELAYER_KEY_NAME="cheqd-relayer"
-CHEQD_RELAYER_ACCOUNT=$(docker-compose exec cheqd cheqd-noded keys add ${CHEQD_RELAYER_KEY_NAME} --keyring-backend test --output json)
+CHEQD_RELAYER_ACCOUNT=$(docker-compose exec cheqd cheqd-noded keys add ${CHEQD_RELAYER_KEY_NAME} --keyring-backend test --output json 2>&1)
 CHEQD_RELAYER_ADDRESS=$(echo "${CHEQD_RELAYER_ACCOUNT}" | jq --raw-output '.address')
 CHEQD_RELAYER_MNEMONIC=$(echo "${CHEQD_RELAYER_ACCOUNT}" | jq --raw-output '.mnemonic')
 
@@ -44,7 +81,7 @@ assert_tx_successful "${RES}"
 
 info "Create relayer user on osmosis" # ---
 OSMOSIS_RELAYER_KEY_NAME="osmosis-relayer"
-OSMOSIS_RELAYER_ACCOUNT=$(docker-compose exec osmosis osmosisd keys add ${OSMOSIS_RELAYER_KEY_NAME} --output json --keyring-backend test)
+OSMOSIS_RELAYER_ACCOUNT=$(docker-compose exec osmosis osmosisd keys add ${OSMOSIS_RELAYER_KEY_NAME} --output json --keyring-backend test 2>&1)
 OSMOSIS_RELAYER_ADDRESS=$(echo "${OSMOSIS_RELAYER_ACCOUNT}" | jq --raw-output '.address')
 OSMOSIS_RELAYER_MNEMONIC=$(echo "${OSMOSIS_RELAYER_ACCOUNT}" | jq --raw-output '.mnemonic')
 
@@ -53,12 +90,14 @@ RES=$(docker-compose exec osmosis osmosisd tx bank send osmosis-user "${OSMOSIS_
 assert_tx_successful "${RES}"
 sleep 10 # Wait for state
 
+
 info "Import accounts in hermes" # ---
+docker-compose up -d hermes
 docker-compose exec hermes hermes keys restore cheqd --mnemonic "$CHEQD_RELAYER_MNEMONIC" --name cheqd-key
 docker-compose exec hermes hermes keys restore osmosis --mnemonic "$OSMOSIS_RELAYER_MNEMONIC" --name osmosis-key
 
 info "Open channel" # ---
-docker-compose exec hermes hermes create channel cheqd osmosis --port-a transfer --port-b transfer
+docker-compose exec hermes hermes create channel cheqd --chain-b osmosis --port-a transfer --port-b transfer --new-client-connection
 
 info "Start hermes" # ---
 docker-compose exec -d hermes hermes start
diff --git a/tests/e2e-complex/ibc-defi/osmosis/osmosis.Dockerfile b/tests/e2e-complex/ibc-defi/osmosis/osmosis.Dockerfile
index 28cc4088d..b0a21b4c1 100644
--- a/tests/e2e-complex/ibc-defi/osmosis/osmosis.Dockerfile
+++ b/tests/e2e-complex/ibc-defi/osmosis/osmosis.Dockerfile
@@ -1,31 +1,3 @@
-#####  Build container  #####
-
-FROM golang:buster as builder
-
-RUN apt-get update && export DEBIAN_FRONTEND=noninteractive \
-    && apt-get -y install --no-install-recommends \
-    curl \
-    make \
-    gcc \
-    python \
-    protobuf-compiler \
-    libprotobuf-dev \
-    wget \
-    git \
-    jq
-
-# App
-WORKDIR /app
-
-RUN git clone --depth 1 --branch v4.2.0 https://github.com/osmosis-labs/osmosis
-
-WORKDIR /app/osmosis
-
-RUN make install
-
-
-#####  Run container  #####
-
 FROM debian:buster
 
 RUN apt-get update && export DEBIAN_FRONTEND=noninteractive \
@@ -36,20 +8,21 @@ RUN apt-get update && export DEBIAN_FRONTEND=noninteractive \
     netcat
 
 # Node binary
-COPY --from=builder /go/bin/osmosisd /bin
+COPY --from=osmolabs/osmosis:10 /bin/osmosisd /bin/osmosisd
+
+ARG USER=osmosis
+ARG GROUP=osmosis
+
+ARG HOME=/home/$USER
 
-RUN groupadd --system --gid 1000 osmosis && \
-    useradd --system --create-home --home-dir /osmosis --shell /bin/bash --gid osmosis --uid 1000 osmosis
-RUN chown -R osmosis /osmosis
+# User
+RUN groupadd --system --gid 1000 $USER && \
+    useradd --system --create-home --home-dir $HOME --shell /bin/bash --gid $GROUP --uid 1000 $USER
 
-WORKDIR /osmosis
-USER osmosis
+WORKDIR $HOME
 
-EXPOSE 26656 26657
-STOPSIGNAL SIGTERM
+RUN chown -R $USER $HOME
+USER $USER
 
-# Init network
-COPY osmosis_init.sh .
-RUN bash osmosis_init.sh
 
 ENTRYPOINT [ "osmosisd", "start" ]