diff --git a/go.mod b/go.mod
index c941ff543..a11abf031 100644
--- a/go.mod
+++ b/go.mod
@@ -27,4 +27,4 @@ require (
 )
 
 // Uncomment for tests with alternate branches of 'dmsg'
-replace github.com/skycoin/dmsg => ../dmsg
+// replace github.com/skycoin/dmsg => ../dmsg
diff --git a/pkg/app/packet_test.go b/pkg/app/packet_test.go
deleted file mode 100644
index 7990a166b..000000000
--- a/pkg/app/packet_test.go
+++ /dev/null
@@ -1,24 +0,0 @@
-package app
-
-import (
-	"fmt"
-
-	"github.com/skycoin/dmsg/cipher"
-
-	"github.com/skycoin/skywire/pkg/routing"
-)
-
-func ExamplePacket() {
-	var lpk, rpk cipher.PubKey
-	laddr := routing.Addr{Port: 0, PubKey: lpk}
-	raddr := routing.Addr{Port: 0, PubKey: rpk}
-	loop := routing.Loop{Local: laddr, Remote: raddr}
-
-	fmt.Println(raddr.Network())
-	fmt.Printf("%v\n", raddr)
-	fmt.Printf("%v\n", loop)
-
-	// Output: skywire
-	// 000000000000000000000000000000000000000000000000000000000000000000:0
-	// 000000000000000000000000000000000000000000000000000000000000000000:0 <-> 000000000000000000000000000000000000000000000000000000000000000000:0
-}
diff --git a/pkg/app2/client_test.go b/pkg/app2/client_test.go
index 56e571cbf..1dbb1e513 100644
--- a/pkg/app2/client_test.go
+++ b/pkg/app2/client_test.go
@@ -1,9 +1,9 @@
 package app2
 
 import (
+	"errors"
 	"testing"
 
-	"github.com/pkg/errors"
 	"github.com/skycoin/dmsg/cipher"
 	"github.com/skycoin/skycoin/src/util/logging"
 	"github.com/stretchr/testify/require"
diff --git a/pkg/app2/errors.go b/pkg/app2/errors.go
index 88653a613..39b50ecd1 100644
--- a/pkg/app2/errors.go
+++ b/pkg/app2/errors.go
@@ -1,6 +1,8 @@
 package app2
 
-import "github.com/pkg/errors"
+import (
+	"errors"
+)
 
 var (
 	// ErrPortAlreadyBound is being returned when trying to bind to the port
diff --git a/pkg/app2/id_manager.go b/pkg/app2/id_manager.go
index e6ea530da..44b36ca63 100644
--- a/pkg/app2/id_manager.go
+++ b/pkg/app2/id_manager.go
@@ -1,10 +1,9 @@
 package app2
 
 import (
+	"errors"
 	"fmt"
 	"sync"
-
-	"github.com/pkg/errors"
 )
 
 var (
diff --git a/pkg/app2/id_manager_util.go b/pkg/app2/id_manager_util.go
index 174b29330..ea00fdc4e 100644
--- a/pkg/app2/id_manager_util.go
+++ b/pkg/app2/id_manager_util.go
@@ -1,9 +1,8 @@
 package app2
 
 import (
+	"errors"
 	"net"
-
-	"github.com/pkg/errors"
 )
 
 // assertListener asserts that `v` is of type `net.Listener`.
diff --git a/pkg/app2/listener_test.go b/pkg/app2/listener_test.go
index 9ff53cf7b..831be099e 100644
--- a/pkg/app2/listener_test.go
+++ b/pkg/app2/listener_test.go
@@ -1,9 +1,9 @@
 package app2
 
 import (
+	"errors"
 	"testing"
 
-	"github.com/pkg/errors"
 	"github.com/skycoin/dmsg/cipher"
 	"github.com/skycoin/skycoin/src/util/logging"
 	"github.com/stretchr/testify/require"
diff --git a/pkg/app2/rpc_client_test.go b/pkg/app2/rpc_client_test.go
index 2d3476780..7ed88850f 100644
--- a/pkg/app2/rpc_client_test.go
+++ b/pkg/app2/rpc_client_test.go
@@ -2,11 +2,11 @@ package app2
 
 import (
 	"context"
+	"errors"
 	"net"
 	"net/rpc"
 	"testing"
 
-	"github.com/pkg/errors"
 	"github.com/skycoin/dmsg"
 	"github.com/skycoin/dmsg/cipher"
 	"github.com/skycoin/skycoin/src/util/logging"
@@ -47,7 +47,7 @@ func TestRPCClient_Dial(t *testing.T) {
 
 		dialCtx := context.Background()
 		dialConn := dmsg.NewTransport(&MockConn{}, logging.MustGetLogger("dmsg_tp"),
-			dmsgLocal, dmsgRemote, 0, func() {})
+			dmsgLocal, dmsgRemote, 0, func(_ uint16) {})
 		var noErr error
 
 		n := &network.MockNetworker{}
@@ -186,7 +186,7 @@ func TestRPCClient_Accept(t *testing.T) {
 			Port: remotePort,
 		}
 		lisConn := dmsg.NewTransport(&MockConn{}, logging.MustGetLogger("dmsg_tp"),
-			dmsgLocal, dmsgRemote, 0, func() {})
+			dmsgLocal, dmsgRemote, 0, func(_ uint16) {})
 		var noErr error
 
 		lis := &MockListener{}
diff --git a/pkg/app2/rpc_gateway.go b/pkg/app2/rpc_gateway.go
index dd1387131..b9473d375 100644
--- a/pkg/app2/rpc_gateway.go
+++ b/pkg/app2/rpc_gateway.go
@@ -1,10 +1,10 @@
 package app2
 
 import (
+	"errors"
 	"fmt"
 	"net"
 
-	"github.com/pkg/errors"
 	"github.com/skycoin/skycoin/src/util/logging"
 
 	"github.com/skycoin/skywire/pkg/app2/network"
diff --git a/pkg/app2/rpc_gateway_test.go b/pkg/app2/rpc_gateway_test.go
index 637100a74..4ad1cb9e5 100644
--- a/pkg/app2/rpc_gateway_test.go
+++ b/pkg/app2/rpc_gateway_test.go
@@ -2,12 +2,12 @@ package app2
 
 import (
 	"context"
+	"errors"
 	"math"
 	"net"
 	"strings"
 	"testing"
 
-	"github.com/pkg/errors"
 	"github.com/skycoin/dmsg"
 	"github.com/skycoin/dmsg/cipher"
 	"github.com/skycoin/skycoin/src/util/logging"
@@ -29,7 +29,7 @@ func TestRPCGateway_Dial(t *testing.T) {
 		localPort := routing.Port(100)
 
 		dialCtx := context.Background()
-		dialConn := dmsg.NewTransport(nil, nil, dmsg.Addr{Port: uint16(localPort)}, dmsg.Addr{}, 0, func() {})
+		dialConn := dmsg.NewTransport(nil, nil, dmsg.Addr{Port: uint16(localPort)}, dmsg.Addr{}, 0, func(_ uint16) {})
 		var dialErr error
 
 		n := &network.MockNetworker{}
diff --git a/pkg/router/route_group.go b/pkg/router/route_group.go
index 1d598afc5..62338d884 100644
--- a/pkg/router/route_group.go
+++ b/pkg/router/route_group.go
@@ -4,6 +4,7 @@ import (
 	"bytes"
 	"context"
 	"errors"
+	"io"
 	"net"
 	"sync"
 	"time"
@@ -41,6 +42,8 @@ type RouteGroup struct {
 	//      and push to the appropriate '(RouteGroup).readCh'.
 	readCh  chan []byte  // push reads from Router
 	readBuf bytes.Buffer // for read overflow
+	done    chan struct{}
+	once    sync.Once
 
 	rt routing.Table
 }
@@ -68,7 +71,12 @@ func (r *RouteGroup) Read(p []byte) (n int, err error) {
 		return r.readBuf.Read(p)
 	}
 
-	return ioutil.BufRead(&r.readBuf, <-r.readCh, p)
+	data, ok := <-r.readCh
+	if !ok {
+		return 0, io.ErrClosedPipe
+	}
+
+	return ioutil.BufRead(&r.readBuf, data, p)
 }
 
 // Write writes payload to a RouteGroup
@@ -102,7 +110,6 @@ func (r *RouteGroup) Write(p []byte) (n int, err error) {
 // - Delete all rules (ForwardRules and ConsumeRules) from routing table.
 // - Close all go channels.
 func (r *RouteGroup) Close() error {
-
 	r.mu.Lock()
 	defer r.mu.Unlock()
 
@@ -124,7 +131,10 @@ func (r *RouteGroup) Close() error {
 	}
 	r.rt.DelRules(routeIDs)
 
-	close(r.readCh) // TODO(nkryuchkov): close readCh properly
+	r.once.Do(func() {
+		close(r.done)
+		close(r.readCh)
+	})
 
 	return nil
 }
diff --git a/pkg/router/router.go b/pkg/router/router.go
index d6bc1b195..49f3b5774 100644
--- a/pkg/router/router.go
+++ b/pkg/router/router.go
@@ -133,7 +133,7 @@ func New(n *snet.Network, config *Config) (*router, error) {
 		trustedNodes: trustedNodes,
 	}
 
-	if err := r.rpcSrv.Register(NewGateway(r)); err != nil {
+	if err := r.rpcSrv.Register(NewRPCGateway(r)); err != nil {
 		return nil, fmt.Errorf("failed to register RPC server")
 	}
 
@@ -276,7 +276,7 @@ func (r *router) handleTransportPacket(ctx context.Context, packet routing.Packe
 	}
 
 	desc := rule.RouteDescriptor()
-	rg, ok := r.rgs[desc]
+	rg, ok := r.routeGroup(desc)
 	if !ok {
 		return errors.New("route descriptor does not exist")
 	}
@@ -288,10 +288,23 @@ func (r *router) handleTransportPacket(ctx context.Context, packet routing.Packe
 	switch t := rule.Type(); t {
 	case routing.RuleForward, routing.RuleIntermediaryForward:
 		return r.forwardPacket(ctx, packet.Payload(), rule)
-	default:
-		rg.readCh <- packet.Payload()
-		return nil
+	default: // TODO(nkryuchkov): try to simplify
+		select {
+		case <-rg.done:
+			return io.ErrClosedPipe
+		default:
+			rg.mu.Lock()
+			defer rg.mu.Unlock()
+			select {
+			case rg.readCh <- packet.Payload():
+				return nil
+			case <-rg.done:
+				return io.ErrClosedPipe
+			}
+
+		}
 	}
+
 }
 
 // GetRule gets routing rule.
@@ -342,24 +355,6 @@ func (r *router) forwardPacket(ctx context.Context, payload []byte, rule routing
 	return nil
 }
 
-// func (r *router) consumePacket(payload []byte, rule routing.Rule) error {
-// 	laddr := routing.Addr{Port: rule.RouteDescriptor().SrcPort()}
-// 	raddr := routing.Addr{PubKey: rule.RouteDescriptor().DstPK(), Port: rule.RouteDescriptor().DstPort()}
-//
-// 	route := routing.Route{Desc: routing.NewRouteDescriptor(laddr.PubKey, raddr.PubKey, laddr.Port, raddr.Port)}
-// 	p := &app.Packet{Desc: route.Desc, Payload: payload}
-// 	b, err := r.pm.Get(rule.RouteDescriptor().SrcPort())
-// 	if err != nil {
-// 		return err
-// 	}
-// 	if err := b.conn.Send(app.FrameSend, p, nil); err != nil { // TODO: Stuck here.
-// 		return err
-// 	}
-//
-// 	r.logger.Infof("Forwarded packet to App on Port %d", rule.RouteDescriptor().SrcPort())
-// 	return nil
-// }
-
 // RemoveRouteDescriptor removes loop rule.
 func (r *router) RemoveRouteDescriptor(desc routing.RouteDescriptor) {
 	rules := r.rt.AllRules()
diff --git a/pkg/router/router_test.go b/pkg/router/router_test.go
index 82bca82a7..ebce2393d 100644
--- a/pkg/router/router_test.go
+++ b/pkg/router/router_test.go
@@ -3,6 +3,7 @@ package router
 import (
 	"context"
 	"fmt"
+	"net"
 	"os"
 	"testing"
 	"time"
@@ -15,6 +16,7 @@ import (
 
 	"github.com/skycoin/skywire/pkg/routefinder/rfclient"
 	"github.com/skycoin/skywire/pkg/routing"
+	"github.com/skycoin/skywire/pkg/setup"
 	"github.com/skycoin/skywire/pkg/snet"
 	"github.com/skycoin/skywire/pkg/snet/snettest"
 	"github.com/skycoin/skywire/pkg/transport"
@@ -251,193 +253,193 @@ func TestRouter_Rules(t *testing.T) {
 	})
 
 	// TEST: Ensure AddRule and DeleteRule requests from a SetupNode does as expected.
-	// t.Run("AddRemoveRule", func(t *testing.T) {
-	// 	clearRules()
-	//
-	// 	// Add/Remove rules multiple times.
-	// 	for i := 0; i < 5; i++ {
-	// 		// As setup connections close after a single request completes
-	// 		// So we need two pairs of connections.
-	// 		requestIDIn, requestIDOut := net.Pipe()
-	// 		addIn, addOut := net.Pipe()
-	// 		delIn, delOut := net.Pipe()
-	// 		errCh := make(chan error, 2)
-	// 		go func() {
-	// 			errCh <- r.handleSetupConn(requestIDOut) // Receive RequestRegistrationID request.
-	// 			errCh <- r.handleSetupConn(addOut)       // Receive AddRule request.
-	// 			errCh <- r.handleSetupConn(delOut)       // Receive DeleteRule request.
-	// 			close(errCh)
-	// 		}()
-	//
-	// 		// Emulate SetupNode sending RequestRegistrationID request.
-	// 		proto := setup.NewSetupProtocol(requestIDIn)
-	// 		ids, err := proto.ReserveRtIDs(context.TODO(), 1)
-	// 		require.NoError(t, err)
-	//
-	// 		// Emulate SetupNode sending AddRule request.
-	// 		rule := routing.IntermediaryForwardRule(10*time.Minute, ids[0], 3, uuid.New())
-	// 		proto = setup.NewSetupProtocol(addIn)
-	// 		err = proto.AddRules(context.TODO(), []routing.Rule{rule})
-	// 		require.NoError(t, err)
-	//
-	// 		// Check routing table state after AddRule.
-	// 		assert.Equal(t, 1, rt.Count())
-	// 		r, err := rt.Rule(ids[0])
-	// 		require.NoError(t, err)
-	// 		assert.Equal(t, rule, r)
-	//
-	// 		// Emulate SetupNode sending RemoveRule request.
-	// 		require.NoError(t, setup.DeleteRule(context.TODO(), setup.NewSetupProtocol(delIn), ids[0]))
-	//
-	// 		// Check routing table state after DeleteRule.
-	// 		assert.Equal(t, 0, rt.Count())
-	// 		r, err = rt.Rule(ids[0])
-	// 		assert.Error(t, err)
-	// 		assert.Nil(t, r)
-	//
-	// 		require.NoError(t, requestIDIn.Close())
-	// 		require.NoError(t, addIn.Close())
-	// 		require.NoError(t, delIn.Close())
-	// 		for err := range errCh {
-	// 			require.NoError(t, err)
-	// 		}
-	// 	}
-	// })
+	t.Run("AddRemoveRule", func(t *testing.T) {
+		clearRules()
+
+		// Add/Remove rules multiple times.
+		for i := 0; i < 5; i++ {
+			// As setup connections close after a single request completes
+			// So we need two pairs of connections.
+			requestIDIn, requestIDOut := net.Pipe()
+			addIn, addOut := net.Pipe()
+			delIn, delOut := net.Pipe()
+			errCh := make(chan error, 2)
+			go func() {
+				errCh <- r.handleSetupConn(requestIDOut) // Receive RequestRegistrationID request.
+				errCh <- r.handleSetupConn(addOut)       // Receive AddRule request.
+				errCh <- r.handleSetupConn(delOut)       // Receive DeleteRule request.
+				close(errCh)
+			}()
+
+			// Emulate SetupNode sending RequestRegistrationID request.
+			proto := setup.NewSetupProtocol(requestIDIn)
+			ids, err := proto.ReserveRtIDs(context.TODO(), 1)
+			require.NoError(t, err)
+
+			// Emulate SetupNode sending AddRule request.
+			rule := routing.IntermediaryForwardRule(10*time.Minute, ids[0], 3, uuid.New())
+			proto = setup.NewSetupProtocol(addIn)
+			err = proto.AddRules(context.TODO(), []routing.Rule{rule})
+			require.NoError(t, err)
+
+			// Check routing table state after AddRule.
+			assert.Equal(t, 1, rt.Count())
+			r, err := rt.Rule(ids[0])
+			require.NoError(t, err)
+			assert.Equal(t, rule, r)
+
+			// Emulate SetupNode sending RemoveRule request.
+			require.NoError(t, setup.DeleteRule(context.TODO(), setup.NewSetupProtocol(delIn), ids[0]))
+
+			// Check routing table state after DeleteRule.
+			assert.Equal(t, 0, rt.Count())
+			r, err = rt.Rule(ids[0])
+			assert.Error(t, err)
+			assert.Nil(t, r)
+
+			require.NoError(t, requestIDIn.Close())
+			require.NoError(t, addIn.Close())
+			require.NoError(t, delIn.Close())
+			for err := range errCh {
+				require.NoError(t, err)
+			}
+		}
+	})
 
 	// TEST: Ensure DeleteRule requests from SetupNode is handled properly.
-	// t.Run("DeleteRules", func(t *testing.T) {
-	// 	clearRules()
-	//
-	// 	in, out := net.Pipe()
-	// 	errCh := make(chan error, 1)
-	// 	go func() {
-	// 		errCh <- r.handleSetupConn(out)
-	// 		close(errCh)
-	// 	}()
-	// 	defer func() {
-	// 		require.NoError(t, in.Close())
-	// 		require.NoError(t, <-errCh)
-	// 	}()
-	//
-	// 	proto := setup.NewSetupProtocol(in)
-	//
-	// 	id, err := r.rt.ReserveKey()
-	// 	require.NoError(t, err)
-	//
-	// 	rule := routing.IntermediaryForwardRule(10*time.Minute, id, 3, uuid.New())
-	//
-	// 	err = r.rt.SaveRule(rule)
-	// 	require.NoError(t, err)
-	//
-	// 	assert.Equal(t, 1, rt.Count())
-	//
-	// 	require.NoError(t, setup.DeleteRule(context.TODO(), proto, id))
-	// 	assert.Equal(t, 0, rt.Count())
-	// })
+	t.Run("DeleteRules", func(t *testing.T) {
+		clearRules()
+
+		in, out := net.Pipe()
+		errCh := make(chan error, 1)
+		go func() {
+			errCh <- r.handleSetupConn(out)
+			close(errCh)
+		}()
+		defer func() {
+			require.NoError(t, in.Close())
+			require.NoError(t, <-errCh)
+		}()
+
+		proto := setup.NewSetupProtocol(in)
+
+		id, err := r.rt.ReserveKey()
+		require.NoError(t, err)
+
+		rule := routing.IntermediaryForwardRule(10*time.Minute, id, 3, uuid.New())
+
+		err = r.rt.SaveRule(rule)
+		require.NoError(t, err)
+
+		assert.Equal(t, 1, rt.Count())
+
+		require.NoError(t, setup.DeleteRule(context.TODO(), proto, id))
+		assert.Equal(t, 0, rt.Count())
+	})
 
 	// TEST: Ensure visorRoutesCreated request from SetupNode is handled properly.
-	// t.Run("RoutesCreated", func(t *testing.T) {
-	// 	clearRules()
-	//
-	// 	var inLoop routing.Loop
-	// 	var inRule routing.Rule
-	//
-	// 	r.OnRoutesCreated = func(loop routing.Loop, rule routing.Rule) (err error) {
-	// 		inLoop = loop
-	// 		inRule = rule
-	// 		return nil
-	// 	}
-	// 	defer func() { r.OnRoutesCreated = nil }()
-	//
-	// 	in, out := net.Pipe()
-	// 	errCh := make(chan error, 1)
-	// 	go func() {
-	// 		errCh <- r.handleSetupConn(out)
-	// 		close(errCh)
-	// 	}()
-	// 	defer func() {
-	// 		require.NoError(t, in.Close())
-	// 		require.NoError(t, <-errCh)
-	// 	}()
-	//
-	// 	proto := setup.NewSetupProtocol(in)
-	// 	pk, _ := cipher.GenerateKeyPair()
-	//
-	// 	rule := routing.ConsumeRule(10*time.Minute, 2, pk, 2, 3)
-	// 	require.NoError(t, rt.SaveRule(rule))
-	//
-	// 	rule = routing.IntermediaryForwardRule(10*time.Minute, 1, 3, uuid.New())
-	// 	require.NoError(t, rt.SaveRule(rule))
-	//
-	// 	ld := routing.LoopData{
-	// 		Loop: routing.Loop{
-	// 			Remote: routing.Addr{
-	// 				PubKey: pk,
-	// 				Port:   3,
-	// 			},
-	// 			Local: routing.Addr{
-	// 				Port: 2,
-	// 			},
-	// 		},
-	// 		RouteID: 1,
-	// 	}
-	// 	err := proto.RoutesCreated(context.TODO(), ld)
-	// 	require.NoError(t, err)
-	// 	assert.Equal(t, rule, inRule)
-	// 	assert.Equal(t, routing.Port(2), inLoop.Local.Port)
-	// 	assert.Equal(t, routing.Port(3), inLoop.Remote.Port)
-	// 	assert.Equal(t, pk, inLoop.Remote.PubKey)
-	// })
+	t.Run("RoutesCreated", func(t *testing.T) {
+		clearRules()
+
+		var inLoop routing.Loop
+		var inRule routing.Rule
+
+		r.OnRoutesCreated = func(loop routing.Loop, rule routing.Rule) (err error) {
+			inLoop = loop
+			inRule = rule
+			return nil
+		}
+		defer func() { r.OnRoutesCreated = nil }()
+
+		in, out := net.Pipe()
+		errCh := make(chan error, 1)
+		go func() {
+			errCh <- r.handleSetupConn(out)
+			close(errCh)
+		}()
+		defer func() {
+			require.NoError(t, in.Close())
+			require.NoError(t, <-errCh)
+		}()
+
+		proto := setup.NewSetupProtocol(in)
+		pk, _ := cipher.GenerateKeyPair()
+
+		rule := routing.ConsumeRule(10*time.Minute, 2, pk, 2, 3)
+		require.NoError(t, rt.SaveRule(rule))
+
+		rule = routing.IntermediaryForwardRule(10*time.Minute, 1, 3, uuid.New())
+		require.NoError(t, rt.SaveRule(rule))
+
+		ld := routing.LoopData{
+			Loop: routing.Loop{
+				Remote: routing.Addr{
+					PubKey: pk,
+					Port:   3,
+				},
+				Local: routing.Addr{
+					Port: 2,
+				},
+			},
+			RouteID: 1,
+		}
+		err := proto.RoutesCreated(context.TODO(), ld)
+		require.NoError(t, err)
+		assert.Equal(t, rule, inRule)
+		assert.Equal(t, routing.Port(2), inLoop.Local.Port)
+		assert.Equal(t, routing.Port(3), inLoop.Remote.Port)
+		assert.Equal(t, pk, inLoop.Remote.PubKey)
+	})
 
 	// TEST: Ensure LoopClosed request from SetupNode is handled properly.
-	// t.Run("LoopClosed", func(t *testing.T) {
-	// 	clearRules()
-	//
-	// 	var inLoop routing.Loop
-	//
-	// 	r.OnLoopClosed = func(loop routing.Loop) error {
-	// 		inLoop = loop
-	// 		return nil
-	// 	}
-	// 	defer func() { r.OnLoopClosed = nil }()
-	//
-	// 	in, out := net.Pipe()
-	// 	errCh := make(chan error, 1)
-	// 	go func() {
-	// 		errCh <- r.handleSetupConn(out)
-	// 		close(errCh)
-	// 	}()
-	// 	defer func() {
-	// 		require.NoError(t, in.Close())
-	// 		require.NoError(t, <-errCh)
-	// 	}()
-	//
-	// 	proto := setup.NewSetupProtocol(in)
-	// 	pk, _ := cipher.GenerateKeyPair()
-	//
-	// 	rule := routing.ConsumeRule(10*time.Minute, 2, pk, 2, 3)
-	// 	require.NoError(t, rt.SaveRule(rule))
-	//
-	// 	rule = routing.IntermediaryForwardRule(10*time.Minute, 1, 3, uuid.New())
-	// 	require.NoError(t, rt.SaveRule(rule))
-	//
-	// 	ld := routing.LoopData{
-	// 		Loop: routing.Loop{
-	// 			Remote: routing.Addr{
-	// 				PubKey: pk,
-	// 				Port:   3,
-	// 			},
-	// 			Local: routing.Addr{
-	// 				Port: 2,
-	// 			},
-	// 		},
-	// 		RouteID: 1,
-	// 	}
-	// 	require.NoError(t, setup.LoopClosed(context.TODO(), proto, ld))
-	// 	assert.Equal(t, routing.Port(2), inLoop.Local.Port)
-	// 	assert.Equal(t, routing.Port(3), inLoop.Remote.Port)
-	// 	assert.Equal(t, pk, inLoop.Remote.PubKey)
-	// })
+	t.Run("LoopClosed", func(t *testing.T) {
+		clearRules()
+
+		var inLoop routing.Loop
+
+		r.OnLoopClosed = func(loop routing.Loop) error {
+			inLoop = loop
+			return nil
+		}
+		defer func() { r.OnLoopClosed = nil }()
+
+		in, out := net.Pipe()
+		errCh := make(chan error, 1)
+		go func() {
+			errCh <- r.handleSetupConn(out)
+			close(errCh)
+		}()
+		defer func() {
+			require.NoError(t, in.Close())
+			require.NoError(t, <-errCh)
+		}()
+
+		proto := setup.NewSetupProtocol(in)
+		pk, _ := cipher.GenerateKeyPair()
+
+		rule := routing.ConsumeRule(10*time.Minute, 2, pk, 2, 3)
+		require.NoError(t, rt.SaveRule(rule))
+
+		rule = routing.IntermediaryForwardRule(10*time.Minute, 1, 3, uuid.New())
+		require.NoError(t, rt.SaveRule(rule))
+
+		ld := routing.LoopData{
+			Loop: routing.Loop{
+				Remote: routing.Addr{
+					PubKey: pk,
+					Port:   3,
+				},
+				Local: routing.Addr{
+					Port: 2,
+				},
+			},
+			RouteID: 1,
+		}
+		require.NoError(t, setup.LoopClosed(context.TODO(), proto, ld))
+		assert.Equal(t, routing.Port(2), inLoop.Local.Port)
+		assert.Equal(t, routing.Port(3), inLoop.Remote.Port)
+		assert.Equal(t, pk, inLoop.Remote.PubKey)
+	})
 }
 
 type TestEnv struct {
diff --git a/pkg/router/gateway.go b/pkg/router/rpc_gateway.go
similarity index 76%
rename from pkg/router/gateway.go
rename to pkg/router/rpc_gateway.go
index 841c48c19..7d63adee7 100644
--- a/pkg/router/gateway.go
+++ b/pkg/router/rpc_gateway.go
@@ -7,19 +7,19 @@ import (
 	"github.com/skycoin/skywire/pkg/setup"
 )
 
-type Gateway struct {
+type RPCGateway struct {
 	logger *logging.Logger
-	router *router // TODO(nkryuchkov): move part of Router methods to Gateway
+	router *router // TODO(nkryuchkov): move part of Router methods to RPCGateway
 }
 
-func NewGateway(router *router) *Gateway {
-	return &Gateway{
+func NewRPCGateway(router *router) *RPCGateway {
+	return &RPCGateway{
 		logger: logging.MustGetLogger("router-gateway"),
 		router: router,
 	}
 }
 
-func (r *Gateway) AddEdgeRules(rules routing.EdgeRules, ok *bool) error {
+func (r *RPCGateway) AddEdgeRules(rules routing.EdgeRules, ok *bool) error {
 	go func() {
 		r.router.accept <- rules
 	}()
@@ -34,7 +34,7 @@ func (r *Gateway) AddEdgeRules(rules routing.EdgeRules, ok *bool) error {
 	return nil
 }
 
-func (r *Gateway) AddIntermediaryRules(rules []routing.Rule, ok *bool) error {
+func (r *RPCGateway) AddIntermediaryRules(rules []routing.Rule, ok *bool) error {
 	if err := r.router.saveRoutingRules(rules...); err != nil {
 		*ok = false
 		r.logger.WithError(err).Warnf("Request completed with error.")
@@ -45,7 +45,7 @@ func (r *Gateway) AddIntermediaryRules(rules []routing.Rule, ok *bool) error {
 	return nil
 }
 
-func (r *Gateway) ReserveIDs(n uint8, routeIDs *[]routing.RouteID) error {
+func (r *RPCGateway) ReserveIDs(n uint8, routeIDs *[]routing.RouteID) error {
 	ids, err := r.router.occupyRouteID(n)
 	if err != nil {
 		r.logger.WithError(err).Warnf("Request completed with error.")
diff --git a/pkg/router/rpc_gateway_test.go b/pkg/router/rpc_gateway_test.go
new file mode 100644
index 000000000..cfe286e5b
--- /dev/null
+++ b/pkg/router/rpc_gateway_test.go
@@ -0,0 +1,2 @@
+package router
+
diff --git a/pkg/routing/packet_test.go b/pkg/routing/packet_test.go
index 8333e93db..fe413f6be 100644
--- a/pkg/routing/packet_test.go
+++ b/pkg/routing/packet_test.go
@@ -6,15 +6,32 @@ import (
 	"github.com/stretchr/testify/assert"
 )
 
-func TestMakePacket(t *testing.T) {
+func TestMakeDataPacket(t *testing.T) {
 	packet := MakeDataPacket(2, []byte("foo"))
-	assert.Equal(
-		t,
-		[]byte{0x0, 0x3, 0x0, 0x0, 0x0, 0x2, 0x66, 0x6f, 0x6f},
-		[]byte(packet),
-	)
+	expected := []byte{0x0, 0x0, 0x0, 0x0, 0x2, 0x0, 0x3, 0x66, 0x6f, 0x6f}
 
+	assert.Equal(t, expected, []byte(packet))
 	assert.Equal(t, uint16(3), packet.Size())
 	assert.Equal(t, RouteID(2), packet.RouteID())
 	assert.Equal(t, []byte("foo"), packet.Payload())
 }
+
+func TestMakeClosePacket(t *testing.T) {
+	packet := MakeClosePacket(3, CloseRequested)
+	expected := []byte{0x1, 0x0, 0x0, 0x0, 0x3, 0x0, 0x1, 0x0}
+
+	assert.Equal(t, expected, []byte(packet))
+	assert.Equal(t, uint16(1), packet.Size())
+	assert.Equal(t, RouteID(3), packet.RouteID())
+	assert.Equal(t, []byte{0x0}, packet.Payload())
+}
+
+func TestMakeKeepAlivePacket(t *testing.T) {
+	packet := MakeKeepAlivePacket(4)
+	expected := []byte{0x2, 0x0, 0x0, 0x0, 0x4, 0x0, 0x0}
+
+	assert.Equal(t, expected, []byte(packet))
+	assert.Equal(t, uint16(0), packet.Size())
+	assert.Equal(t, RouteID(4), packet.RouteID())
+	assert.Equal(t, []byte{}, packet.Payload())
+}
diff --git a/pkg/setup/node.go b/pkg/setup/node.go
index a65e16199..612d042f8 100644
--- a/pkg/setup/node.go
+++ b/pkg/setup/node.go
@@ -83,7 +83,7 @@ func (sn *Node) Serve() error {
 		sn.logger.WithField("requester", conn.RemotePK()).Infof("Received request.")
 
 		rpcS := rpc.NewServer()
-		if err := rpcS.Register(NewGateway(conn.RemotePK(), sn)); err != nil {
+		if err := rpcS.Register(NewRPCGateway(conn.RemotePK(), sn)); err != nil {
 			return err
 		}
 		go rpcS.ServeConn(conn)
diff --git a/pkg/setup/node_test.go b/pkg/setup/node_test.go
index 2ad099075..b07369ecf 100644
--- a/pkg/setup/node_test.go
+++ b/pkg/setup/node_test.go
@@ -3,11 +3,28 @@
 package setup
 
 import (
+	"context"
+	"encoding/json"
+	"errors"
+	"fmt"
 	"log"
 	"os"
+	"sync"
+	"sync/atomic"
 	"testing"
+	"time"
 
+	"github.com/google/uuid"
+	"github.com/skycoin/dmsg"
+	"github.com/skycoin/dmsg/cipher"
+	"github.com/skycoin/dmsg/disc"
 	"github.com/skycoin/skycoin/src/util/logging"
+	"github.com/stretchr/testify/require"
+	"golang.org/x/net/nettest"
+
+	"github.com/skycoin/skywire/pkg/metrics"
+	"github.com/skycoin/skywire/pkg/routing"
+	"github.com/skycoin/skywire/pkg/snet"
 )
 
 func TestMain(m *testing.M) {
@@ -40,324 +57,324 @@ func TestMain(m *testing.M) {
 // 3. Hanging may be not the problem of the DMSG. Probably some of the communication part here is wrong.
 // The reason I think so is that - if we ensure read timeouts, why doesn't this test constantly fail?
 // Maybe some wrapper for DMSG is wrong, or some internal operations before the actual communication behave bad
-// func TestNode(t *testing.T) {
-// 	// Prepare mock dmsg discovery.
-// 	discovery := disc.NewMock()
-//
-// 	// Prepare dmsg server.
-// 	server, serverErr := createServer(t, discovery)
-// 	defer func() {
-// 		require.NoError(t, server.Close())
-// 		require.NoError(t, errWithTimeout(serverErr))
-// 	}()
-//
-// 	type clientWithDMSGAddrAndListener struct {
-// 		*dmsg.Client
-// 		Addr     dmsg.Addr
-// 		Listener *dmsg.Listener
-// 	}
-//
-// 	// CLOSURE: sets up dmsg clients.
-// 	prepClients := func(n int) ([]clientWithDMSGAddrAndListener, func()) {
-// 		clients := make([]clientWithDMSGAddrAndListener, n)
-// 		for i := 0; i < n; i++ {
-// 			var port uint16
-// 			// setup node
-// 			if i == 0 {
-// 				port = snet.SetupPort
-// 			} else {
-// 				port = snet.AwaitSetupPort
-// 			}
-// 			pk, sk, err := cipher.GenerateDeterministicKeyPair([]byte{byte(i)})
-// 			require.NoError(t, err)
-// 			t.Logf("client[%d] PK: %s\n", i, pk)
-// 			c := dmsg.NewClient(pk, sk, discovery, dmsg.SetLogger(logging.MustGetLogger(fmt.Sprintf("client_%d:%s:%d", i, pk, port))))
-// 			require.NoError(t, c.InitiateServerConnections(context.TODO(), 1))
-// 			listener, err := c.Listen(port)
-// 			require.NoError(t, err)
-// 			clients[i] = clientWithDMSGAddrAndListener{
-// 				Client: c,
-// 				Addr: dmsg.Addr{
-// 					PK:   pk,
-// 					Port: port,
-// 				},
-// 				Listener: listener,
-// 			}
-// 		}
-// 		return clients, func() {
-// 			for _, c := range clients {
-// 				//require.NoError(t, c.Listener.Close())
-// 				require.NoError(t, c.Close())
-// 			}
-// 		}
-// 	}
-//
-// 	// CLOSURE: sets up setup node.
-// 	prepSetupNode := func(c *dmsg.Client, listener *dmsg.Listener) (*Node, func()) {
-// 		sn := &Node{
-// 			logger:  logging.MustGetLogger("setup_node"),
-// 			dmsgC:   c,
-// 			dmsgL:   listener,
-// 			metrics: metrics.NewDummy(),
-// 		}
-// 		go func() {
-// 			if err := sn.Serve(); err != nil {
-// 				sn.logger.WithError(err).Error("Failed to serve")
-// 			}
-// 		}()
-// 		return sn, func() {
-// 			require.NoError(t, sn.Close())
-// 		}
-// 	}
-//
-//// TEST: Emulates the communication between 4 visor nodes and a setup node,
-//// where the first client node initiates a loop to the last.
-//t.Run("CreateRoutes", func(t *testing.T) {
-//	// client index 0 is for setup node.
-//	// clients index 1 to 4 are for visor nodes.
-//	clients, closeClients := prepClients(5)
-//	defer closeClients()
-//
-//	// prepare and serve setup node (using client 0).
-//	_, closeSetup := prepSetupNode(clients[0].Client, clients[0].Listener)
-//	setupPK := clients[0].Addr.PK
-//	setupPort := clients[0].Addr.Port
-//	defer closeSetup()
-//
-//	// prepare loop creation (client_1 will use this to request loop creation with setup node).
-//	ld := routing.LoopDescriptor{
-//		Loop: routing.Loop{
-//			Local:  routing.Addr{PubKey: clients[1].Addr.PK, Port: 1},
-//			Remote: routing.Addr{PubKey: clients[4].Addr.PK, Port: 1},
-//		},
-//		Reverse: routing.Route{
-//			&routing.Hop{From: clients[1].Addr.PK, To: clients[2].Addr.PK, Transport: uuid.New()},
-//			&routing.Hop{From: clients[2].Addr.PK, To: clients[3].Addr.PK, Transport: uuid.New()},
-//			&routing.Hop{From: clients[3].Addr.PK, To: clients[4].Addr.PK, Transport: uuid.New()},
-//		},
-//		Forward: routing.Route{
-//			&routing.Hop{From: clients[4].Addr.PK, To: clients[3].Addr.PK, Transport: uuid.New()},
-//			&routing.Hop{From: clients[3].Addr.PK, To: clients[2].Addr.PK, Transport: uuid.New()},
-//			&routing.Hop{From: clients[2].Addr.PK, To: clients[1].Addr.PK, Transport: uuid.New()},
-//		},
-//		KeepAlive: 1 * time.Hour,
-//	}
-//
-//	// client_1 initiates loop creation with setup node.
-//	iTp, err := clients[1].Dial(context.TODO(), setupPK, setupPort)
-//	require.NoError(t, err)
-//	iTpErrs := make(chan error, 2)
-//	go func() {
-//		iTpErrs <- CreateRoutes(context.TODO(), NewSetupProtocol(iTp), ld)
-//		iTpErrs <- iTp.Close()
-//		close(iTpErrs)
-//	}()
-//	defer func() {
-//		i := 0
-//		for err := range iTpErrs {
-//			require.NoError(t, err, i)
-//			i++
-//		}
-//	}()
-//
-//	var addRuleDone sync.WaitGroup
-//	var nextRouteID uint32
-//	// CLOSURE: emulates how a visor node should react when expecting an AddRules packet.
-//	expectAddRules := func(client int, expRule routing.RuleType) {
-//		conn, err := clients[client].Listener.Accept()
-//		require.NoError(t, err)
-//
-//		fmt.Printf("client %v:%v accepted\n", client, clients[client].Addr)
-//
-//		proto := NewSetupProtocol(conn)
-//
-//		pt, _, err := proto.ReadPacket()
-//		require.NoError(t, err)
-//		require.Equal(t, PacketRequestRouteID, pt)
-//
-//		fmt.Printf("client %v:%v got PacketRequestRouteID\n", client, clients[client].Addr)
-//
-//		routeID := atomic.AddUint32(&nextRouteID, 1)
-//
-//		// TODO: This error is not checked due to a bug in dmsg.
-//		_ = proto.WritePacket(RespSuccess, []routing.RouteID{routing.RouteID(routeID)}) // nolint:errcheck
-//		require.NoError(t, err)
-//
-//		fmt.Printf("client %v:%v responded to with registration ID: %v\n", client, clients[client].Addr, routeID)
-//
-//		require.NoError(t, conn.Close())
-//
-//		conn, err = clients[client].Listener.Accept()
-//		require.NoError(t, err)
-//
-//		fmt.Printf("client %v:%v accepted 2nd time\n", client, clients[client].Addr)
-//
-//		proto = NewSetupProtocol(conn)
-//
-//		pt, pp, err := proto.ReadPacket()
-//		require.NoError(t, err)
-//		require.Equal(t, PacketAddRules, pt)
-//
-//		fmt.Printf("client %v:%v got PacketAddRules\n", client, clients[client].Addr)
-//
-//		var rs []routing.Rule
-//		require.NoError(t, json.Unmarshal(pp, &rs))
-//
-//		for _, r := range rs {
-//			require.Equal(t, expRule, r.Type())
-//		}
-//
-//		// TODO: This error is not checked due to a bug in dmsg.
-//		err = proto.WritePacket(RespSuccess, nil)
-//		_ = err
-//
-//		fmt.Printf("client %v:%v responded for PacketAddRules\n", client, clients[client].Addr)
-//
-//		require.NoError(t, conn.Close())
-//
-//		addRuleDone.Done()
-//	}
-//
-//	// CLOSURE: emulates how a visor node should react when expecting an OnConfirmLoop packet.
-//	expectConfirmLoop := func(client int) {
-//		tp, err := clients[client].Listener.AcceptTransport()
-//		require.NoError(t, err)
-//
-//		proto := NewSetupProtocol(tp)
-//
-//		pt, pp, err := proto.ReadPacket()
-//		require.NoError(t, err)
-//		require.Equal(t, PacketConfirmLoop, pt)
-//
-//		var d routing.LoopData
-//		require.NoError(t, json.Unmarshal(pp, &d))
-//
-//		switch client {
-//		case 1:
-//			require.Equal(t, ld.Loop, d.Loop)
-//		case 4:
-//			require.Equal(t, ld.Loop.Local, d.Loop.Remote)
-//			require.Equal(t, ld.Loop.Remote, d.Loop.Local)
-//		default:
-//			t.Fatalf("We shouldn't be receiving a OnConfirmLoop packet from client %d", client)
-//		}
-//
-//		// TODO: This error is not checked due to a bug in dmsg.
-//		err = proto.WritePacket(RespSuccess, nil)
-//		_ = err
-//
-//		require.NoError(t, tp.Close())
-//	}
-//
-//	// since the route establishment is asynchronous,
-//	// we must expect all the messages in parallel
-//	addRuleDone.Add(4)
-//	go expectAddRules(4, routing.RuleApp)
-//	go expectAddRules(3, routing.RuleForward)
-//	go expectAddRules(2, routing.RuleForward)
-//	go expectAddRules(1, routing.RuleForward)
-//	addRuleDone.Wait()
-//	fmt.Println("FORWARD ROUTE DONE")
-//	addRuleDone.Add(4)
-//	go expectAddRules(1, routing.RuleApp)
-//	go expectAddRules(2, routing.RuleForward)
-//	go expectAddRules(3, routing.RuleForward)
-//	go expectAddRules(4, routing.RuleForward)
-//	addRuleDone.Wait()
-//	fmt.Println("REVERSE ROUTE DONE")
-//	expectConfirmLoop(1)
-//	expectConfirmLoop(4)
-//})
-//
-// TEST: Emulates the communication between 2 visor nodes and a setup nodes,
-// where a route is already established,
-// and the first client attempts to tear it down.
-// t.Run("CloseLoop", func(t *testing.T) {
-// 	// client index 0 is for setup node.
-// 	// clients index 1 and 2 are for visor nodes.
-// 	clients, closeClients := prepClients(3)
-// 	defer closeClients()
-//
-// 	// prepare and serve setup node.
-// 	_, closeSetup := prepSetupNode(clients[0].Client, clients[0].Listener)
-// 	setupPK := clients[0].Addr.PK
-// 	setupPort := clients[0].Addr.Port
-// 	defer closeSetup()
-//
-// 	// prepare loop data describing the loop that is to be closed.
-// 	ld := routing.LoopData{
-// 		Loop: routing.Loop{
-// 			Local: routing.Addr{
-// 				PubKey: clients[1].Addr.PK,
-// 				Port:   1,
-// 			},
-// 			Remote: routing.Addr{
-// 				PubKey: clients[2].Addr.PK,
-// 				Port:   2,
-// 			},
-// 		},
-// 		RouteID: 3,
-// 	}
-//
-// 	// client_1 initiates close loop with setup node.
-// 	iTp, err := clients[1].Dial(context.TODO(), setupPK, setupPort)
-// 	require.NoError(t, err)
-// 	iTpErrs := make(chan error, 2)
-// 	go func() {
-// 		iTpErrs <- CloseLoop(context.TODO(), NewSetupProtocol(iTp), ld)
-// 		iTpErrs <- iTp.Close()
-// 		close(iTpErrs)
-// 	}()
-// 	defer func() {
-// 		i := 0
-// 		for err := range iTpErrs {
-// 			require.NoError(t, err, i)
-// 			i++
-// 		}
-// 	}()
-//
-// 	// client_2 accepts close request.
-// 	tp, err := clients[2].Listener.AcceptTransport()
-// 	require.NoError(t, err)
-// 	defer func() { require.NoError(t, tp.Close()) }()
-//
-// 	proto := NewSetupProtocol(tp)
-//
-// 	pt, pp, err := proto.ReadPacket()
-// 	require.NoError(t, err)
-// 	require.Equal(t, PacketLoopClosed, pt)
-//
-// 	var d routing.LoopData
-// 	require.NoError(t, json.Unmarshal(pp, &d))
-// 	require.Equal(t, ld.Loop.Remote, d.Loop.Local)
-// 	require.Equal(t, ld.Loop.Local, d.Loop.Remote)
-//
-// 	// TODO: This error is not checked due to a bug in dmsg.
-// 	err = proto.WritePacket(RespSuccess, nil)
-// 	_ = err
-// })
-// }
-//
-// func createServer(t *testing.T, dc disc.APIClient) (srv *dmsg.Server, srvErr <-chan error) {
-// 	pk, sk, err := cipher.GenerateDeterministicKeyPair([]byte("s"))
-// 	require.NoError(t, err)
-// 	l, err := nettest.NewLocalListener("tcp")
-// 	require.NoError(t, err)
-// 	srv, err = dmsg.NewServer(pk, sk, "", l, dc)
-// 	require.NoError(t, err)
-// 	errCh := make(chan error, 1)
-// 	go func() {
-// 		errCh <- srv.Serve()
-// 		close(errCh)
-// 	}()
-// 	return srv, errCh
-// }
-//
-// func errWithTimeout(ch <-chan error) error {
-// 	select {
-// 	case err := <-ch:
-// 		return err
-// 	case <-time.After(5 * time.Second):
-// 		return errors.New("timeout")
-// 	}
-// }
+func TestNode(t *testing.T) {
+	// Prepare mock dmsg discovery.
+	discovery := disc.NewMock()
+
+	// Prepare dmsg server.
+	server, serverErr := createServer(t, discovery)
+	defer func() {
+		require.NoError(t, server.Close())
+		require.NoError(t, errWithTimeout(serverErr))
+	}()
+
+	type clientWithDMSGAddrAndListener struct {
+		*dmsg.Client
+		Addr     dmsg.Addr
+		Listener *dmsg.Listener
+	}
+
+	// CLOSURE: sets up dmsg clients.
+	prepClients := func(n int) ([]clientWithDMSGAddrAndListener, func()) {
+		clients := make([]clientWithDMSGAddrAndListener, n)
+		for i := 0; i < n; i++ {
+			var port uint16
+			// setup node
+			if i == 0 {
+				port = snet.SetupPort
+			} else {
+				port = snet.AwaitSetupPort
+			}
+			pk, sk, err := cipher.GenerateDeterministicKeyPair([]byte{byte(i)})
+			require.NoError(t, err)
+			t.Logf("client[%d] PK: %s\n", i, pk)
+			c := dmsg.NewClient(pk, sk, discovery, dmsg.SetLogger(logging.MustGetLogger(fmt.Sprintf("client_%d:%s:%d", i, pk, port))))
+			require.NoError(t, c.InitiateServerConnections(context.TODO(), 1))
+			listener, err := c.Listen(port)
+			require.NoError(t, err)
+			clients[i] = clientWithDMSGAddrAndListener{
+				Client: c,
+				Addr: dmsg.Addr{
+					PK:   pk,
+					Port: port,
+				},
+				Listener: listener,
+			}
+		}
+		return clients, func() {
+			for _, c := range clients {
+				//require.NoError(t, c.Listener.Close())
+				require.NoError(t, c.Close())
+			}
+		}
+	}
+
+	// CLOSURE: sets up setup node.
+	prepSetupNode := func(c *dmsg.Client, listener *dmsg.Listener) (*Node, func()) {
+		sn := &Node{
+			logger:  logging.MustGetLogger("setup_node"),
+			dmsgC:   c,
+			dmsgL:   listener,
+			metrics: metrics.NewDummy(),
+		}
+		go func() {
+			if err := sn.Serve(); err != nil {
+				sn.logger.WithError(err).Error("Failed to serve")
+			}
+		}()
+		return sn, func() {
+			require.NoError(t, sn.Close())
+		}
+	}
+
+	// TEST: Emulates the communication between 4 visor nodes and a setup node,
+	// where the first client node initiates a loop to the last.
+	t.Run("CreateRoutes", func(t *testing.T) {
+		// client index 0 is for setup node.
+		// clients index 1 to 4 are for visor nodes.
+		clients, closeClients := prepClients(5)
+		defer closeClients()
+
+		// prepare and serve setup node (using client 0).
+		_, closeSetup := prepSetupNode(clients[0].Client, clients[0].Listener)
+		setupPK := clients[0].Addr.PK
+		setupPort := clients[0].Addr.Port
+		defer closeSetup()
+
+		// prepare loop creation (client_1 will use this to request loop creation with setup node).
+		ld := routing.LoopDescriptor{
+			Loop: routing.Loop{
+				Local:  routing.Addr{PubKey: clients[1].Addr.PK, Port: 1},
+				Remote: routing.Addr{PubKey: clients[4].Addr.PK, Port: 1},
+			},
+			Reverse: routing.Route{
+				&routing.Hop{From: clients[1].Addr.PK, To: clients[2].Addr.PK, Transport: uuid.New()},
+				&routing.Hop{From: clients[2].Addr.PK, To: clients[3].Addr.PK, Transport: uuid.New()},
+				&routing.Hop{From: clients[3].Addr.PK, To: clients[4].Addr.PK, Transport: uuid.New()},
+			},
+			Forward: routing.Route{
+				&routing.Hop{From: clients[4].Addr.PK, To: clients[3].Addr.PK, Transport: uuid.New()},
+				&routing.Hop{From: clients[3].Addr.PK, To: clients[2].Addr.PK, Transport: uuid.New()},
+				&routing.Hop{From: clients[2].Addr.PK, To: clients[1].Addr.PK, Transport: uuid.New()},
+			},
+			KeepAlive: 1 * time.Hour,
+		}
+
+		// client_1 initiates loop creation with setup node.
+		iTp, err := clients[1].Dial(context.TODO(), setupPK, setupPort)
+		require.NoError(t, err)
+		iTpErrs := make(chan error, 2)
+		go func() {
+			iTpErrs <- CreateRoutes(context.TODO(), NewSetupProtocol(iTp), ld)
+			iTpErrs <- iTp.Close()
+			close(iTpErrs)
+		}()
+		defer func() {
+			i := 0
+			for err := range iTpErrs {
+				require.NoError(t, err, i)
+				i++
+			}
+		}()
+
+		var addRuleDone sync.WaitGroup
+		var nextRouteID uint32
+		// CLOSURE: emulates how a visor node should react when expecting an AddRules packet.
+		expectAddRules := func(client int, expRule routing.RuleType) {
+			conn, err := clients[client].Listener.Accept()
+			require.NoError(t, err)
+
+			fmt.Printf("client %v:%v accepted\n", client, clients[client].Addr)
+
+			proto := NewSetupProtocol(conn)
+
+			pt, _, err := proto.ReadPacket()
+			require.NoError(t, err)
+			require.Equal(t, PacketRequestRouteID, pt)
+
+			fmt.Printf("client %v:%v got PacketRequestRouteID\n", client, clients[client].Addr)
+
+			routeID := atomic.AddUint32(&nextRouteID, 1)
+
+			// TODO: This error is not checked due to a bug in dmsg.
+			_ = proto.WritePacket(RespSuccess, []routing.RouteID{routing.RouteID(routeID)}) // nolint:errcheck
+			require.NoError(t, err)
+
+			fmt.Printf("client %v:%v responded to with registration ID: %v\n", client, clients[client].Addr, routeID)
+
+			require.NoError(t, conn.Close())
+
+			conn, err = clients[client].Listener.Accept()
+			require.NoError(t, err)
+
+			fmt.Printf("client %v:%v accepted 2nd time\n", client, clients[client].Addr)
+
+			proto = NewSetupProtocol(conn)
+
+			pt, pp, err := proto.ReadPacket()
+			require.NoError(t, err)
+			require.Equal(t, PacketAddRules, pt)
+
+			fmt.Printf("client %v:%v got PacketAddRules\n", client, clients[client].Addr)
+
+			var rs []routing.Rule
+			require.NoError(t, json.Unmarshal(pp, &rs))
+
+			for _, r := range rs {
+				require.Equal(t, expRule, r.Type())
+			}
+
+			// TODO: This error is not checked due to a bug in dmsg.
+			err = proto.WritePacket(RespSuccess, nil)
+			_ = err
+
+			fmt.Printf("client %v:%v responded for PacketAddRules\n", client, clients[client].Addr)
+
+			require.NoError(t, conn.Close())
+
+			addRuleDone.Done()
+		}
+
+		// CLOSURE: emulates how a visor node should react when expecting an OnConfirmLoop packet.
+		expectConfirmLoop := func(client int) {
+			tp, err := clients[client].Listener.AcceptTransport()
+			require.NoError(t, err)
+
+			proto := NewSetupProtocol(tp)
+
+			pt, pp, err := proto.ReadPacket()
+			require.NoError(t, err)
+			require.Equal(t, PacketConfirmLoop, pt)
+
+			var d routing.LoopData
+			require.NoError(t, json.Unmarshal(pp, &d))
+
+			switch client {
+			case 1:
+				require.Equal(t, ld.Loop, d.Loop)
+			case 4:
+				require.Equal(t, ld.Loop.Local, d.Loop.Remote)
+				require.Equal(t, ld.Loop.Remote, d.Loop.Local)
+			default:
+				t.Fatalf("We shouldn't be receiving a OnConfirmLoop packet from client %d", client)
+			}
+
+			// TODO: This error is not checked due to a bug in dmsg.
+			err = proto.WritePacket(RespSuccess, nil)
+			_ = err
+
+			require.NoError(t, tp.Close())
+		}
+
+		// since the route establishment is asynchronous,
+		// we must expect all the messages in parallel
+		addRuleDone.Add(4)
+		go expectAddRules(4, routing.RuleApp)
+		go expectAddRules(3, routing.RuleForward)
+		go expectAddRules(2, routing.RuleForward)
+		go expectAddRules(1, routing.RuleForward)
+		addRuleDone.Wait()
+		fmt.Println("FORWARD ROUTE DONE")
+		addRuleDone.Add(4)
+		go expectAddRules(1, routing.RuleApp)
+		go expectAddRules(2, routing.RuleForward)
+		go expectAddRules(3, routing.RuleForward)
+		go expectAddRules(4, routing.RuleForward)
+		addRuleDone.Wait()
+		fmt.Println("REVERSE ROUTE DONE")
+		expectConfirmLoop(1)
+		expectConfirmLoop(4)
+	})
+
+	// TEST: Emulates the communication between 2 visor nodes and a setup nodes,
+	// where a route is already established,
+	// and the first client attempts to tear it down.
+	t.Run("CloseLoop", func(t *testing.T) {
+		// client index 0 is for setup node.
+		// clients index 1 and 2 are for visor nodes.
+		clients, closeClients := prepClients(3)
+		defer closeClients()
+
+		// prepare and serve setup node.
+		_, closeSetup := prepSetupNode(clients[0].Client, clients[0].Listener)
+		setupPK := clients[0].Addr.PK
+		setupPort := clients[0].Addr.Port
+		defer closeSetup()
+
+		// prepare loop data describing the loop that is to be closed.
+		ld := routing.LoopData{
+			Loop: routing.Loop{
+				Local: routing.Addr{
+					PubKey: clients[1].Addr.PK,
+					Port:   1,
+				},
+				Remote: routing.Addr{
+					PubKey: clients[2].Addr.PK,
+					Port:   2,
+				},
+			},
+			RouteID: 3,
+		}
+
+		// client_1 initiates close loop with setup node.
+		iTp, err := clients[1].Dial(context.TODO(), setupPK, setupPort)
+		require.NoError(t, err)
+		iTpErrs := make(chan error, 2)
+		go func() {
+			iTpErrs <- CloseLoop(context.TODO(), NewSetupProtocol(iTp), ld)
+			iTpErrs <- iTp.Close()
+			close(iTpErrs)
+		}()
+		defer func() {
+			i := 0
+			for err := range iTpErrs {
+				require.NoError(t, err, i)
+				i++
+			}
+		}()
+
+		// client_2 accepts close request.
+		tp, err := clients[2].Listener.AcceptTransport()
+		require.NoError(t, err)
+		defer func() { require.NoError(t, tp.Close()) }()
+
+		proto := NewSetupProtocol(tp)
+
+		pt, pp, err := proto.ReadPacket()
+		require.NoError(t, err)
+		require.Equal(t, PacketLoopClosed, pt)
+
+		var d routing.LoopData
+		require.NoError(t, json.Unmarshal(pp, &d))
+		require.Equal(t, ld.Loop.Remote, d.Loop.Local)
+		require.Equal(t, ld.Loop.Local, d.Loop.Remote)
+
+		// TODO: This error is not checked due to a bug in dmsg.
+		err = proto.WritePacket(RespSuccess, nil)
+		_ = err
+	})
+}
+
+func createServer(t *testing.T, dc disc.APIClient) (srv *dmsg.Server, srvErr <-chan error) {
+	pk, sk, err := cipher.GenerateDeterministicKeyPair([]byte("s"))
+	require.NoError(t, err)
+	l, err := nettest.NewLocalListener("tcp")
+	require.NoError(t, err)
+	srv, err = dmsg.NewServer(pk, sk, "", l, dc)
+	require.NoError(t, err)
+	errCh := make(chan error, 1)
+	go func() {
+		errCh <- srv.Serve()
+		close(errCh)
+	}()
+	return srv, errCh
+}
+
+func errWithTimeout(ch <-chan error) error {
+	select {
+	case err := <-ch:
+		return err
+	case <-time.After(5 * time.Second):
+		return errors.New("timeout")
+	}
+}
diff --git a/pkg/setup/gateway.go b/pkg/setup/rpc_gateway.go
similarity index 89%
rename from pkg/setup/gateway.go
rename to pkg/setup/rpc_gateway.go
index 6eb2ccc1f..5a276a815 100644
--- a/pkg/setup/gateway.go
+++ b/pkg/setup/rpc_gateway.go
@@ -13,21 +13,21 @@ import (
 	"github.com/skycoin/skywire/pkg/routing"
 )
 
-type Gateway struct {
+type RPCGateway struct {
 	logger *logging.Logger
 	reqPK  cipher.PubKey
 	sn     *Node
 }
 
-func NewGateway(reqPK cipher.PubKey, sn *Node) *Gateway {
-	return &Gateway{
+func NewRPCGateway(reqPK cipher.PubKey, sn *Node) *RPCGateway {
+	return &RPCGateway{
 		logger: logging.MustGetLogger("setup-gateway"),
 		reqPK:  reqPK,
 		sn:     sn,
 	}
 }
 
-func (g *Gateway) DialRouteGroup(route routing.BidirectionalRoute, rules *routing.EdgeRules) (failure error) {
+func (g *RPCGateway) DialRouteGroup(route routing.BidirectionalRoute, rules *routing.EdgeRules) (failure error) {
 	startTime := time.Now()
 	defer func() {
 		g.sn.metrics.Record(time.Since(startTime), failure != nil)
@@ -107,7 +107,7 @@ func (g *Gateway) DialRouteGroup(route routing.BidirectionalRoute, rules *routin
 	return nil
 }
 
-func (g *Gateway) reserveRouteIDs(ctx context.Context, route routing.BidirectionalRoute) (*idReservoir, error) {
+func (g *RPCGateway) reserveRouteIDs(ctx context.Context, route routing.BidirectionalRoute) (*idReservoir, error) {
 	reservoir, total := newIDReservoir(route.Forward, route.Reverse)
 	g.logger.Infof("There are %d route IDs to reserve.", total)
 
diff --git a/pkg/visor/visor_test.go b/pkg/visor/visor_test.go
index 5ae56cb7a..fea4a3e62 100644
--- a/pkg/visor/visor_test.go
+++ b/pkg/visor/visor_test.go
@@ -19,6 +19,7 @@ import (
 	"github.com/stretchr/testify/require"
 
 	"github.com/skycoin/skywire/pkg/app"
+	"github.com/skycoin/skywire/pkg/router"
 	"github.com/skycoin/skywire/pkg/routing"
 	"github.com/skycoin/skywire/pkg/snet"
 	"github.com/skycoin/skywire/pkg/transport"
@@ -259,6 +260,14 @@ type mockRouter struct {
 	errChan chan error
 }
 
+func (r *mockRouter) DialRoutes(ctx context.Context, rPK cipher.PubKey, lPort, rPort routing.Port, opts *router.DialOptions) (*router.RouteGroup, error) {
+	panic("implement me")
+}
+
+func (r *mockRouter) AcceptRoutes() (*router.RouteGroup, error) {
+	panic("implement me")
+}
+
 func (r *mockRouter) Ports() []routing.Port {
 	r.Lock()
 	p := r.ports