diff --git a/.gitignore b/.gitignore
index 105b3d29d..30346ae64 100644
--- a/.gitignore
+++ b/.gitignore
@@ -6,4 +6,7 @@ release.tar.gz
 nchainz/
 .idea/
 .csv
-chain-code/
\ No newline at end of file
+chain-code/
+two-chains/ibc-*
+two-chains/.relayer
+two-chains/*.log
diff --git a/Dockerfile b/Dockerfile
index cb35bb960..6fc682eb1 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -7,15 +7,14 @@ COPY . .
 
 # Update and install needed deps prioir to installing the binary.
 RUN apk update && \
-    apk --no-cache add make git && \
-    make install
+  apk --no-cache add make git && \
+  make install
 
 FROM alpine:latest
 
 ENV RELAYER /relayer
 
-RUN addgroup rlyuser && \
-    adduser -S -G rlyuser rlyuser -h "$RELAYER"
+RUN addgroup rlyuser && adduser -S -G rlyuser rlyuser -h "$RELAYER"
 
 USER rlyuser
 
diff --git a/Makefile b/Makefile
index 985a86fe6..27efd6cc2 100644
--- a/Makefile
+++ b/Makefile
@@ -48,6 +48,15 @@ install: go.sum
 ###############################################################################
 # Tests / CI
 ###############################################################################
+
+two-chains:
+	@docker-compose -f ./two-chains/docker-compose.yaml down
+	@rm -fr ./two-chains/ibc-* ./two-chains/.relayer ./two-chains/rly.log
+	@docker-compose -f ./two-chains/docker-compose.yaml up -d
+	@while ! curl localhost:26657 &> /dev/null; do sleep 1; done
+	@while ! curl localhost:26667 &> /dev/null; do sleep 1; done
+	@cd ./two-chains && sh relayer-setup && cd ..
+
 test:
 	@TEST_DEBUG=true go test -mod=readonly -v ./test/...
 
@@ -66,8 +75,6 @@ lint:
 	@find . -name '*.go' -type f -not -path "*.git*" | xargs gofmt -d -s
 	@go mod verify
 
-.PHONY: install build lint coverage clean
-
 ###############################################################################
 # Chain Code Downloads
 ###############################################################################
@@ -104,3 +111,5 @@ check-swagger:
 
 update-swagger-docs: check-swagger
 	swagger generate spec -o ./docs/swagger-ui/swagger.yaml
+
+.PHONY: two-chains test install build lint coverage clean
diff --git a/README.md b/README.md
index f6cdfbd2f..a76750269 100644
--- a/README.md
+++ b/README.md
@@ -36,7 +36,6 @@ wanting to build their [IBC](https://ibcprotocol.org/)-compliant relayer.
   - [Compatibility Table](#compatibility-table)
   - [Testnet](#testnet)
   - [Demo](#demo)
-  - [Setting up Developer Environment](#setting-up-developer-environment)
   - [Security Notice](#security-notice)
   - [Code of Conduct](#code-of-conduct)
 
@@ -263,27 +262,6 @@ $ rly q bal ibc-1
 # You can change the amount of fees you are paying on each chain in the configuration.
 ```
 
-## Setting up Developer Environment
-
-Working with the relayer can frequently involve working with local development
-branches of your desired applications/networks, e.g. `gaia`, `akash`, in addition
-to `cosmos-sdk` and the `relayer`.
-
-To setup your environment to point at the local versions of the code and reduce
-the amount of time in your read-eval-print loops try the following:
-
-1. Set `replace github.com/cosmos/cosmos-sdk => /path/to/local/github.com/comsos/cosmos-sdk`
-   at the end of the `go.mod` files for the `relayer` and your network/application,
-   e.g. `gaia`. This will force building from the local version of the `cosmos-sdk`
-   when running the `./dev-env` script.
-2. After `./dev-env` has run, you can use `go run main.go` for any relayer
-   commands you are working on. This allows you make changes and immediately test
-   them as long as there are no server side changes.
-3. If you make changes in `cosmos-sdk` that need to be reflected server-side,
-   be sure to re-run `./two-chainz`.
-4. If you need to work off of a `gaia` branch other than `master`, change the
-   branch name at the top of the `./two-chainz` script.
-
 ## Security Notice
 
 If you would like to report a security critical bug related to the relayer repo,
diff --git a/cmd/tx.go b/cmd/tx.go
index a862bf64b..dca858042 100644
--- a/cmd/tx.go
+++ b/cmd/tx.go
@@ -54,10 +54,13 @@ Most of these commands take a [path] argument. Make sure:
 
 func sendCmd() *cobra.Command {
 	cmd := &cobra.Command{
-		Use:     "send [chain-id] [from-key] [to-address] [amount]",
-		Short:   "send funds to a different address on the same chain",
-		Args:    cobra.ExactArgs(4),
-		Example: strings.TrimSpace(fmt.Sprintf(`$ %s tx send testkey cosmos10yft4nc8tacpngwlpyq3u4t88y7qzc9xv0q4y8 10000uatom`, appName)),
+		Use:   "send [chain-id] [from-key] [to-address] [amount]",
+		Short: "send funds to a different address on the same chain",
+		Args:  cobra.ExactArgs(4),
+		Example: strings.TrimSpace(fmt.Sprintf(`
+$ %s tx send testkey cosmos10yft4nc8tacpngwlpyq3u4t88y7qzc9xv0q4y8 10000uatom`,
+			appName,
+		)),
 		RunE: func(cmd *cobra.Command, args []string) error {
 			c, err := config.Chains.Get(args[0])
 			if err != nil {
diff --git a/configs/demo/paths/demo.json b/configs/demo/paths/demo.json
index 3be245258..369fae2f0 100644
--- a/configs/demo/paths/demo.json
+++ b/configs/demo/paths/demo.json
@@ -1,18 +1,12 @@
 {
   "src": {
     "chain-id": "ibc-0",
-    "client-id": "",
-    "connection-id": "",
-    "channel-id": "",
     "port-id": "transfer",
     "order": "unordered",
     "version": "ics20-1"
   },
   "dst": {
     "chain-id": "ibc-1",
-    "client-id": "",
-    "connection-id": "",
-    "channel-id": "",
     "port-id": "transfer",
     "order": "unordered",
     "version": "ics20-1"
diff --git a/dev-env b/dev-env
deleted file mode 100755
index 019b55fd1..000000000
--- a/dev-env
+++ /dev/null
@@ -1,29 +0,0 @@
-#/bin/bash -e
-
-RELAYER_DIR="$GOPATH/src/github.com/cosmos/relayer"
-RELAYER_CONF="$HOME/.relayer"
-GAIA_CONF="$(pwd)/data"
-
-# Ensure user understands what will be deleted
-if ([[ -d $RELAYER_CONF ]] || [[ -d $GAIA_CONF ]]) && [[ ! "$1" == "skip" ]]; then
-  read -p "$0 will delete \$HOME/.relayer and \$(pwd)/data folder. Do you wish to continue? (y/n): " -n 1 -r
-  echo
-  if [[ ! $REPLY =~ ^[Yy]$ ]]; then
-      exit 1
-  fi
-fi
-
-cd $RELAYER_DIR
-rm -rf $RELAYER_CONF &> /dev/null
-bash scripts/two-chainz "skip"
-
-echo "waiting for blocks..."
-sleep 3
-
-rly tx link demo -d -o 3s
-rly tx txf ibc-0 ibc-1 100000samoleans $(rly ch addr ibc-1)
-rly tx txf ibc-1 ibc-0 100000samoleans $(rly ch addr ibc-0)
-sleep 1
-rly tx relay demo -d
-sleep 1
-rly tx acks demo -d
diff --git a/docker-compose.yaml b/docker-compose.yaml
deleted file mode 100644
index 064e7d197..000000000
--- a/docker-compose.yaml
+++ /dev/null
@@ -1,30 +0,0 @@
-version: "3.7"
-services:
-    ibc-0:
-        image: "jackzampolin/gaiatest:gaiav3.0"
-        ports:
-            - "46657:26657"
-        command: 
-            - "ibc-0"
-            - "${IBC0ADDR}"
-    ibc-1:
-        image: "jackzampolin/gaiatest:gaiav3.0"
-        ports:
-            - "46658:26657"
-        command: 
-            - "ibc-1"
-            - "${IBC1ADDR}"
-    ibc-2:
-        image: "jackzampolin/gaiatest:gaiav3.0"
-        ports:
-            - "46659:26657"
-        command: 
-            - "ibc-2"
-            - "${IBC2ADDR}"
-    ibc-3:
-        image: "jackzampolin/gaiatest:gaiav3.0"
-        ports:
-            - "46660:26657"
-        command: 
-            - "ibc-3"
-            - "${IBC3ADDR}"
diff --git a/main.go b/main.go
index 120b750f1..50ab0e973 100644
--- a/main.go
+++ b/main.go
@@ -1,18 +1,3 @@
-/*
-Copyright © 2020 Jack Zampolin jack.zampolin@gmail.com
-
-Licensed under the Apache License, Version 2.0 (the "License");
-you may not use this file except in compliance with the License.
-You may obtain a copy of the License at
-
-    http://www.apache.org/licenses/LICENSE-2.0
-
-Unless required by applicable law or agreed to in writing, software
-distributed under the License is distributed on an "AS IS" BASIS,
-WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-See the License for the specific language governing permissions and
-limitations under the License.
-*/
 package main
 
 import "github.com/cosmos/relayer/cmd"
diff --git a/relayer/tm-light-client.go b/relayer/tm-light-client.go
index dc6b43d08..52626fef3 100644
--- a/relayer/tm-light-client.go
+++ b/relayer/tm-light-client.go
@@ -34,6 +34,9 @@ var (
 	// a lock to prevent two processes from trying to access the light client
 	// database at the same time resulting in errors and panics.
 	lightDBMutex sync.Mutex
+
+	// ErrDatabase defines a sentinel database general error type.
+	ErrDatabase = errors.New("database failure")
 )
 
 func lightError(err error) error { return fmt.Errorf("light client: %w", err) }
@@ -175,28 +178,29 @@ func (c *Chain) LightClient(db dbm.DB) (*light.Client, error) {
 	)
 }
 
-// NewLightDB returns a new instance of the lightclient database connection
-// CONTRACT: must close the database connection when done with it (defer df())
-func (c *Chain) NewLightDB() (db *dbm.GoLevelDB, df func(), err error) {
-	// a lock is used to prevent error messages or panics from two processes
-	// trying to simultanenously use the light client
+// NewLightDB returns a new instance of the lightclient database connection. The
+// caller MUST close the database connection through a deferred execution of the
+// returned cleanup function.
+func (c *Chain) NewLightDB() (db *dbm.GoLevelDB, cleanup func(), err error) {
+	// XXX: A lock is used to prevent error messages or panics from two processes
+	// trying to simultaneously use the light client.
 	lightDBMutex.Lock()
 
 	db, err = dbm.NewGoLevelDB(c.ChainID, lightDir(c.HomePath))
 	if err != nil {
 		lightDBMutex.Unlock()
-		return nil, nil, fmt.Errorf("can't open light client database: %w", err)
+		return nil, nil, fmt.Errorf("%s: %w", err, ErrDatabase)
 	}
 
-	df = func() {
+	cleanup = func() {
 		err := db.Close()
 		lightDBMutex.Unlock()
 		if err != nil {
-			panic(err)
+			panic(fmt.Sprintf("failed to close light client database: %s", err))
 		}
 	}
 
-	return
+	return db, cleanup, nil
 }
 
 // DeleteLightDB removes the light client database on disk, forcing re-initialization
@@ -269,12 +273,25 @@ func (c *Chain) GetLatestLightHeight() (int64, error) {
 	return client.LastTrustedHeight()
 }
 
-// MustGetLatestLightHeight returns the latest height of the light client
-// and panics if an error occurs.
+// MustGetLatestLightHeight returns the latest height of the light client. If
+// an error occurs due to a database failure, we keep trying with a delayed
+// re-attempt. Otherwise, we panic.
 func (c *Chain) MustGetLatestLightHeight() uint64 {
 	height, err := c.GetLatestLightHeight()
 	if err != nil {
-		panic(err)
+		if errors.Is(err, ErrDatabase) {
+			// XXX: Sleep and try again if the database is unavailable. This can easily
+			// happen if two distinct resources try to access the database at the same
+			// time. To avoid causing a corrupted or lost packet, we keep trying as to
+			// not halt the relayer.
+			//
+			// ref: https://github.com/cosmos/relayer/issues/444
+			c.logger.Error("failed to get latest height due to a database failure; trying again...", "err", err)
+			time.Sleep(time.Second)
+			c.MustGetLatestLightHeight()
+		} else {
+			panic(err)
+		}
 	}
 
 	return uint64(height)
diff --git a/scripts/one-chain b/scripts/one-chain
index d0995fec4..b2325b58e 100755
--- a/scripts/one-chain
+++ b/scripts/one-chain
@@ -109,4 +109,4 @@ else
 fi
 
 # Start the gaia
-redirect $BINARY --home $CHAINDIR/$CHAINID start --pruning=nothing --grpc.address="0.0.0.0:$GRPCPORT" > $CHAINDIR/$CHAINID.log &
+redirect $BINARY --home $CHAINDIR/$CHAINID start --pruning=nothing --grpc.address="0.0.0.0:$GRPCPORT" > $CHAINDIR/$CHAINID.log 2>&1 &
diff --git a/two-chains/chains/ibc-0.json b/two-chains/chains/ibc-0.json
new file mode 100644
index 000000000..fe1ac6471
--- /dev/null
+++ b/two-chains/chains/ibc-0.json
@@ -0,0 +1,9 @@
+{
+  "key": "ibc-0-relayer-key",
+  "chain-id": "ibc-0",
+  "rpc-addr": "http://localhost:26657",
+  "account-prefix": "cosmos",
+  "gas-adjustment": 1.5,
+  "gas-prices": "0.025uatom",
+  "trusting-period": "336h"
+}
diff --git a/two-chains/chains/ibc-1.json b/two-chains/chains/ibc-1.json
new file mode 100644
index 000000000..a8b83d2df
--- /dev/null
+++ b/two-chains/chains/ibc-1.json
@@ -0,0 +1,9 @@
+{
+  "key": "ibc-1-relayer-key",
+  "chain-id": "ibc-1",
+  "rpc-addr": "http://localhost:26667",
+  "account-prefix": "cosmos",
+  "gas-adjustment": 1.5,
+  "gas-prices": "0.025uatom",
+  "trusting-period": "336h"
+}
diff --git a/two-chains/docker-compose.yaml b/two-chains/docker-compose.yaml
new file mode 100644
index 000000000..5972da5ba
--- /dev/null
+++ b/two-chains/docker-compose.yaml
@@ -0,0 +1,38 @@
+version: "3.9"
+services:
+    ibc-0:
+        image: "tendermint/gaia:v4.2.0"
+        ports:
+            - "26656-26657:26656-26657"
+            - "1317:1317"
+            - "9090:9090"
+        volumes:
+            - ./ibc-0:/gaia/.gaia:Z
+        command: >
+            sh -c "gaiad --chain-id=ibc-0 init ibc-0
+            && gaiad keys add validator --keyring-backend='test' --output json > $$HOME/.gaia/validator_seed.json 2> /dev/null
+            && gaiad keys add user --keyring-backend='test' --output json > $$HOME/.gaia/key_seed.json 2> /dev/null
+            && gaiad add-genesis-account $$(gaiad keys --keyring-backend='test' show user -a) 100000000000stake,100000000000uatom
+            && gaiad add-genesis-account $$(gaiad keys --keyring-backend='test' show validator -a) 100000000000stake,100000000000uatom
+            && gaiad gentx validator 100000000000stake --keyring-backend='test' --chain-id ibc-0
+            && gaiad collect-gentxs
+            && sed -i'.bak' -e 's#tcp://127.0.0.1:26657#tcp://0.0.0.0:26657#g' $$HOME/.gaia/config/config.toml
+            && gaiad start --pruning=nothing"
+    ibc-1:
+        image: "tendermint/gaia:v4.2.0"
+        ports:
+            - "26666-26667:26656-26657"
+            - "1318:1317"
+            - "9091:9090"
+        volumes:
+            - ./ibc-1:/gaia/.gaia:Z
+        command: >
+            sh -c "gaiad --chain-id=ibc-1 init ibc-1
+            && gaiad keys add validator --keyring-backend='test' --output json > $$HOME/.gaia/validator_seed.json 2> /dev/null
+            && gaiad keys add user --keyring-backend='test' --output json > $$HOME/.gaia/key_seed.json 2> /dev/null
+            && gaiad add-genesis-account $$(gaiad keys --keyring-backend='test' show user -a) 100000000000stake,100000000000uatom
+            && gaiad add-genesis-account $$(gaiad keys --keyring-backend='test' show validator -a) 100000000000stake,100000000000uatom
+            && gaiad gentx validator 100000000000stake --keyring-backend='test' --chain-id ibc-1
+            && gaiad collect-gentxs
+            && sed -i'.bak' -e 's#tcp://127.0.0.1:26657#tcp://0.0.0.0:26657#g' $$HOME/.gaia/config/config.toml
+            && gaiad start --pruning=nothing"
diff --git a/two-chains/paths/transfer.json b/two-chains/paths/transfer.json
new file mode 100644
index 000000000..369fae2f0
--- /dev/null
+++ b/two-chains/paths/transfer.json
@@ -0,0 +1,15 @@
+{
+  "src": {
+    "chain-id": "ibc-0",
+    "port-id": "transfer",
+    "order": "unordered",
+    "version": "ics20-1"
+  },
+  "dst": {
+    "chain-id": "ibc-1",
+    "port-id": "transfer",
+    "order": "unordered",
+    "version": "ics20-1"
+  },
+  "strategy": { "type": "naive" }
+}
diff --git a/two-chains/relayer-setup b/two-chains/relayer-setup
new file mode 100755
index 000000000..99b8ce037
--- /dev/null
+++ b/two-chains/relayer-setup
@@ -0,0 +1,31 @@
+#!/bin/bash
+
+relayer_dir=./.relayer
+
+echo "--> removing old relayer test directory"
+rm -fr $relayer_dir
+
+echo "--> creating new relayer test directory"
+mkdir $relayer_dir
+
+echo "--> generating relayer configuration..."
+rly config init --home $relayer_dir
+rly config add-chains ./chains --home $relayer_dir
+
+echo "--> importing relayer keys..."
+seed_ibc0=$(jq -r '.mnemonic' ./ibc-0/key_seed.json)
+seed_ibc1=$(jq -r '.mnemonic' ./ibc-1/key_seed.json)
+echo "--> key $(rly keys restore --home $relayer_dir ibc-0 ibc-0-relayer-key "$seed_ibc0") imported from ibc-0 to relayer"
+echo "--> key $(rly keys restore --home $relayer_dir ibc-1 ibc-1-relayer-key "$seed_ibc1") imported from ibc-1 to relayer"
+
+echo "--> adding transfer path to relayer..."
+rly config add-paths ./paths --home $relayer_dir
+
+echo "--> creating light clients..."
+rly light init ibc-0 -f --home $relayer_dir
+rly light init ibc-1 -f --home $relayer_dir
+
+echo "--> linking transfer path..."
+rly tx link transfer --home $relayer_dir -r 10 -o 20s
+
+echo "--> relayer ready to use 🎉"
diff --git a/two-chains/relayer-test b/two-chains/relayer-test
new file mode 100755
index 000000000..f45630e22
--- /dev/null
+++ b/two-chains/relayer-test
@@ -0,0 +1,53 @@
+#!/bin/bash
+
+relayer_dir=./.relayer
+
+# start relayer on the transfer path
+echo "--> starting the relayer..."
+rm -fr rly.log
+rly start transfer --home $relayer_dir --time-threshold=1m > rly.log 2>&1 &
+rly_pid=$!
+
+sleep 5
+
+declare -a transfer_pids
+
+for i in {0..19}
+do
+  # send transfer and store PID
+  echo "--> ($((i+1))/20) sending transfer..."
+  rly tx transfer ibc-0 ibc-1 1000uatom cosmos1skjwj5whet0lpe65qaq4rpq03hjxlwd9nf39lk --path=transfer --home $relayer_dir &
+  transfer_pids+=($!)
+
+  sleep 1
+done
+
+# wait for all transfer processes to exit
+successful_transfers=0
+for pid in "${transfer_pids[@]}"
+do
+  wait $pid
+  result=$?
+  if [ $result -eq 0 ]; then
+    ((successful_transfers++))
+  fi
+done
+
+echo "--> successful transfers: $successful_transfers"
+
+if [ $successful_transfers -eq 0 ]; then
+  echo "--> all transfers failed"
+  exit 1
+fi
+
+# ensure the relayer is still running and kill it afterwards
+if ps -p $rly_pid > /dev/null
+then
+  echo "--> stopping relayer..."
+  kill $rly_pid
+else
+  echo "--> relayer is not running!"
+  exit 1
+fi
+
+echo "--> finished 🎉"