diff --git a/wallet-new/cardano-sl-wallet-new.cabal b/wallet-new/cardano-sl-wallet-new.cabal
index e21d236bdca..52827201c2d 100755
--- a/wallet-new/cardano-sl-wallet-new.cabal
+++ b/wallet-new/cardano-sl-wallet-new.cabal
@@ -16,11 +16,9 @@ cabal-version:       >=1.10
 library
   hs-source-dirs:      src
   exposed-modules:     Cardano.Wallet.API
-                       Cardano.Wallet.API.Development
-                       Cardano.Wallet.API.Development.Handlers
-                       Cardano.Wallet.API.Development.Helpers
-                       Cardano.Wallet.API.Development.LegacyHandlers
                        Cardano.Wallet.API.Indices
+                       Cardano.Wallet.API.Internal
+                       Cardano.Wallet.API.Internal.Handlers
                        Cardano.Wallet.API.Request
                        Cardano.Wallet.API.Request.Filter
                        Cardano.Wallet.API.Request.Pagination
@@ -292,6 +290,7 @@ executable cardano-generate-swagger-file
                      , cardano-sl-core
                      , cardano-sl-wallet-new
                      , optparse-applicative
+                     , servant-server
                      , swagger2
                      , universum >= 0.1.11
 
@@ -302,6 +301,7 @@ executable cardano-generate-swagger-file
                        ScopedTypeVariables
                        FlexibleContexts
                        MonadFailDesugaring
+                       TypeOperators
 
 
 -- Cryptic executable name to mitigate $PATH limitation
@@ -506,7 +506,7 @@ test-suite wallet-new-specs
   hs-source-dirs:   test test/unit
 
   other-modules:    APISpec
-                    DevelopmentSpec
+                    InternalAPISpec
                     MarshallingSpec
                     SwaggerSpec
                     RequestSpec
diff --git a/wallet-new/generate-swagger-file/Main.hs b/wallet-new/generate-swagger-file/Main.hs
index 622bfbfdc6c..efc53926d0b 100644
--- a/wallet-new/generate-swagger-file/Main.hs
+++ b/wallet-new/generate-swagger-file/Main.hs
@@ -1,5 +1,4 @@
-{-# LANGUAGE LambdaCase      #-}
-{-# LANGUAGE TemplateHaskell #-}
+{-# LANGUAGE LambdaCase #-}
 
 module Main where
 
@@ -7,8 +6,9 @@ import           Universum
 
 import           Data.Swagger (Swagger)
 import           Options.Applicative
+import           Servant ((:<|>))
 
-import           Cardano.Wallet.API (devAPI, v0API, v1API)
+import           Cardano.Wallet.API (InternalAPI, V1API, v0API)
 import           Pos.Core.Update (ApplicationName (..), SoftwareVersion (..))
 import           Pos.Util.CompileInfo (CompileTimeInfo (CompileTimeInfo),
                      gitRev)
@@ -27,7 +27,6 @@ data Command = Command
 data TargetAPI
     = TargetWalletV1
     | TargetWalletV0
-    | TargetWalletDev
     deriving (Show)
 
 
@@ -49,7 +48,7 @@ main =
         cmdParser :: Parser Command
         cmdParser = Command
             <$> targetAPIOption (short 't' <> long "target" <> metavar "API"
-                  <> help "Target API with version (e.g. 'wallet@v1', 'wallet@v0', 'wallet@dev'...)")
+                  <> help "Target API with version (e.g. 'wallet@v1', 'wallet@v0')")
 
             <*> optional (strOption (short 'o' <> long "output-file" <> metavar "FILEPATH"
                     <> help ("Output file, default to: " <> defaultOutputFilename)))
@@ -58,7 +57,6 @@ main =
         targetAPIOption = option $ maybeReader $ \case
             "wallet@v0"  -> Just TargetWalletV0
             "wallet@v1"  -> Just TargetWalletV1
-            "wallet@dev" -> Just TargetWalletDev
             _            -> Nothing
     in do
         Command{..} <-
@@ -71,12 +69,12 @@ main =
 
 mkSwagger :: (CompileTimeInfo, SoftwareVersion) -> TargetAPI -> Swagger
 mkSwagger details = \case
-    TargetWalletDev ->
-        Swagger.api details devAPI Swagger.highLevelShortDescription
     TargetWalletV0 ->
         Swagger.api details v0API  Swagger.highLevelShortDescription
     TargetWalletV1  ->
-        Swagger.api details v1API  Swagger.highLevelDescription
+        Swagger.api details v1API' Swagger.highLevelDescription
+  where
+    v1API' = Proxy :: Proxy (V1API :<|> InternalAPI)
 
 
 -- NOTE The software version is hard-coded here. Do determine the SoftwareVersion,
diff --git a/wallet-new/integration/TransactionSpecs.hs b/wallet-new/integration/TransactionSpecs.hs
index 9ab76acd5da..3e1955d5e71 100644
--- a/wallet-new/integration/TransactionSpecs.hs
+++ b/wallet-new/integration/TransactionSpecs.hs
@@ -45,18 +45,25 @@ transactionSpecs wRef wc = do
                     , pmtGroupingPolicy = Nothing
                     , pmtSpendingPassword = Nothing
                     }
-                tenthOf (V1 c) = V1 (Core.mkCoin (Core.getCoin c `div` 10))
+                tenthOf (V1 c) =
+                    V1 (Core.mkCoin (max 1 (Core.getCoin c `div` 10)))
 
             etxn <- postTransaction wc payment
 
             txn <- fmap wrData etxn `shouldPrism` _Right
 
-            eresp <- getTransactionIndex wc (Just (walId wallet)) (Just (accIndex toAcct)) Nothing
+            eresp <- getTransactionIndex
+                wc
+                (Just (walId wallet))
+                (Just (accIndex toAcct))
+                Nothing
             resp <- fmap wrData eresp `shouldPrism` _Right
 
             map txId resp `shouldContain` [txId txn]
 
-        it "asset-locked wallets can receive funds and transaction are confirmed in index" $ do
+        it ( "asset-locked wallets can receive funds and transactions are "
+           <> "confirmed in index"
+           ) $ do
             genesis <- genesisWallet wc
             (fromAcct, _) <- firstAccountAndId wc genesis
 
diff --git a/wallet-new/src/Cardano/Wallet/API.hs b/wallet-new/src/Cardano/Wallet/API.hs
index efd21a75414..75f534ddd04 100644
--- a/wallet-new/src/Cardano/Wallet/API.hs
+++ b/wallet-new/src/Cardano/Wallet/API.hs
@@ -1,18 +1,15 @@
 module Cardano.Wallet.API
        ( V0API
+       , V0API'
        , v0API
        , V1API
        , v1API
-       , DevAPI
-       , devAPI
+       , InternalAPI
+       , internalAPI
        , WalletAPI
        , walletAPI
-       , WalletDevAPI
-       , walletDevAPI
        , WalletDocAPI
        , walletDocAPI
-       , WalletDevDocAPI
-       , walletDevDocAPI
        ) where
 
 import           Cardano.Wallet.API.Types (WalletLoggingConfig)
@@ -20,7 +17,7 @@ import           Pos.Util.Servant (LoggingApi)
 import           Servant ((:<|>), (:>), Proxy (..))
 import           Servant.Swagger.UI (SwaggerSchemaUI)
 
-import qualified Cardano.Wallet.API.Development as Dev
+import qualified Cardano.Wallet.API.Internal as Internal
 import qualified Cardano.Wallet.API.V0 as V0
 import qualified Cardano.Wallet.API.V1 as V1
 
@@ -38,35 +35,30 @@ import qualified Cardano.Wallet.API.V1 as V1
 -- * 'Cardano.Wallet.Server' contains the main server;
 -- * 'Cardano.Wallet.API.V0.Handlers' contains all the @Handler@s serving the V0 API;
 -- * 'Cardano.Wallet.API.V1.Handlers' contains all the @Handler@s serving the V1 API;
--- * 'Cardano.Wallet.API.Development.Handlers' contains all the @Handler@s serving the Dev API;
+-- * 'Cardano.Wallet.API.Internalelopment.Handlers' contains all the @Handler@s serving the Internal API;
 
 type V0Doc = "docs" :> "v0" :> SwaggerSchemaUI "index" "swagger.json"
-type V0API = "api" :> V0.API
+type V1Doc = "docs" :> "v1" :> SwaggerSchemaUI "index" "swagger.json"
+
+
+type V0API  = "api" :> V0.API
+type V0API' = "api" :> "v0" :> V0.API
 v0API :: Proxy V0API
 v0API = Proxy
 
-type V1Doc = "docs" :> "v1" :> SwaggerSchemaUI "index" "swagger.json"
 type V1API = "api" :> "v1" :> V1.API
 v1API :: Proxy V1API
 v1API = Proxy
 
-type DevDoc = "docs" :> "development" :> SwaggerSchemaUI "index" "swagger.json"
-type DevAPI = "api" :> "development" :> Dev.API
-devAPI :: Proxy DevAPI
-devAPI = Proxy
+type InternalAPI = "api" :> "internal" :> Internal.API
+internalAPI :: Proxy InternalAPI
+internalAPI = Proxy
 
-type WalletAPI = LoggingApi WalletLoggingConfig (V0API :<|> V1API)
+
+type WalletAPI = LoggingApi WalletLoggingConfig (V0API' :<|> V0API :<|> V1API :<|> InternalAPI)
 walletAPI :: Proxy WalletAPI
 walletAPI = Proxy
 
-type WalletDevAPI = DevAPI :<|> WalletAPI
-walletDevAPI :: Proxy WalletDevAPI
-walletDevAPI = Proxy
-
 type WalletDocAPI = V0Doc :<|> V1Doc
 walletDocAPI :: Proxy WalletDocAPI
 walletDocAPI = Proxy
-
-type WalletDevDocAPI = DevDoc :<|> WalletDocAPI
-walletDevDocAPI :: Proxy WalletDevDocAPI
-walletDevDocAPI = Proxy
diff --git a/wallet-new/src/Cardano/Wallet/API/Development.hs b/wallet-new/src/Cardano/Wallet/API/Development.hs
deleted file mode 100644
index 76d060ec9d4..00000000000
--- a/wallet-new/src/Cardano/Wallet/API/Development.hs
+++ /dev/null
@@ -1,36 +0,0 @@
-{-# OPTIONS_GHC -fno-warn-orphans #-}
--- orphan instance is proivded for V1 WalletStateSnapshot, as it is only
--- exposed as an octetstream anyway
-
-module Cardano.Wallet.API.Development where
-
-import           Universum
-
-import           Cardano.Wallet.API.Response (ValidJSON, WalletResponse)
-import           Cardano.Wallet.API.Types (Tags)
-import           Cardano.Wallet.API.V1.Types (V1 (..))
-import           Data.Aeson
-import           Data.Swagger (NamedSchema (..), ToSchema (..))
-import           Pos.Wallet.Web.Methods.Misc (WalletStateSnapshot)
-import           Servant
-import           Servant.API.ContentTypes (OctetStream)
-
--- the ToSchema instance that was being generated for this type is invalid,
--- so we make one here an dhide it behind the WalletStateSnapshot
-instance ToSchema (V1 WalletStateSnapshot) where
-    declareNamedSchema _ =
-        pure $ NamedSchema (Just "V1WalletStateSnapshot") mempty
-
-instance ToJSON (V1 WalletStateSnapshot) where
-    toJSON (V1 x) = toJSON x
-
-type API
-    = Tags '["Development"] :>
-    (
-         "dump-wallet-state"  :> Summary "Dump wallet state."
-                              :> Get '[OctetStream] (WalletResponse (V1 WalletStateSnapshot))
-    :<|> "secret-keys"        :> Summary "Clear wallet state and delete all the secret keys."
-                              :> DeleteNoContent '[ValidJSON] NoContent
-    :<|> "fail"               :> Summary "Throw a generic error"
-                              :> GetNoContent '[ValidJSON] NoContent
-    )
diff --git a/wallet-new/src/Cardano/Wallet/API/Development/Handlers.hs b/wallet-new/src/Cardano/Wallet/API/Development/Handlers.hs
deleted file mode 100644
index 698b8e81db4..00000000000
--- a/wallet-new/src/Cardano/Wallet/API/Development/Handlers.hs
+++ /dev/null
@@ -1,15 +0,0 @@
-module Cardano.Wallet.API.Development.Handlers
-    ( handlers
-    ) where
-
-import           Universum
-
-import           Cardano.Wallet.Server.CLI (RunMode (..))
-
-import           Servant
-
-import qualified Cardano.Wallet.API.Development as Dev
-
--- TODO: Add handlers for new wallet
-handlers :: RunMode -> Server Dev.API
-handlers _ = error "TODO"
diff --git a/wallet-new/src/Cardano/Wallet/API/Development/Helpers.hs b/wallet-new/src/Cardano/Wallet/API/Development/Helpers.hs
deleted file mode 100644
index 7ae1eb169f4..00000000000
--- a/wallet-new/src/Cardano/Wallet/API/Development/Helpers.hs
+++ /dev/null
@@ -1,12 +0,0 @@
-module Cardano.Wallet.API.Development.Helpers where
-
-import           Universum
-
-import           Cardano.Wallet.Server.CLI (RunMode (..), isDebugMode)
-import           Servant (err403)
-
-
-developmentOnly :: MonadThrow m => RunMode -> m a -> m a
-developmentOnly runMode api
-    | isDebugMode runMode = api
-    | otherwise = throwM err403
diff --git a/wallet-new/src/Cardano/Wallet/API/Development/LegacyHandlers.hs b/wallet-new/src/Cardano/Wallet/API/Development/LegacyHandlers.hs
deleted file mode 100644
index 6408b0a357d..00000000000
--- a/wallet-new/src/Cardano/Wallet/API/Development/LegacyHandlers.hs
+++ /dev/null
@@ -1,68 +0,0 @@
-{-# LANGUAGE DataKinds             #-}
-{-# LANGUAGE FlexibleInstances     #-}
-{-# LANGUAGE MultiParamTypeClasses #-}
-{-# LANGUAGE PolyKinds             #-}
-{-# LANGUAGE RankNTypes            #-}
-{-# LANGUAGE TypeFamilies          #-}
-
-module Cardano.Wallet.API.Development.LegacyHandlers
-    ( handlers
-    , deleteSecretKeys
-    ) where
-
-import           Control.Monad.Catch (MonadThrow)
-import           Universum
-
-import qualified Cardano.Wallet.API.Development as Dev
-import           Cardano.Wallet.API.Development.Helpers (developmentOnly)
-import           Cardano.Wallet.API.Response (WalletResponse, single)
-import           Cardano.Wallet.API.V1.Migration
-import           Cardano.Wallet.API.V1.Types (V1 (..))
-import           Cardano.Wallet.Server.CLI (RunMode (..))
-
-import qualified Pos.Client.KeyStorage as V0
-import qualified Pos.Wallet.Web.Methods.Misc as V0
-import qualified Pos.Wallet.Web.State as V0
-
-import           Servant
-
--- | Until we depend from V0 logic to implement the each 'Handler' we
--- still need the natural transformation here.
-handlers :: (forall a. MonadV1 a -> Handler a)
-         -> RunMode
-         -> Server Dev.API
-handlers naturalTransformation runMode =
-         hoistServer (Proxy @Dev.API) naturalTransformation handlers'
-         where
-            -- | @Servant@ handlers needed by test cases.
-            -- They are not available in public, but for development mode only.
-            handlers' :: ( V0.WalletDbReader ctx m
-                         , V0.MonadKeys m
-                         , MonadThrow m
-                         , MonadIO m
-                         )
-                      => ServerT Dev.API m
-            handlers' =    getWalletState runMode
-                      :<|> deleteSecretKeys runMode
-                      :<|> throwSomething runMode
-
-getWalletState :: ( MonadThrow m, MonadIO m, V0.WalletDbReader ctx m)
-               => RunMode
-               -> m (WalletResponse (V1 V0.WalletStateSnapshot))
-getWalletState runMode =
-    developmentOnly runMode (fmap V1 . single <$> V0.dumpState)
-
-deleteSecretKeys :: ( V0.WalletDbReader ctx m
-                    , V0.MonadKeys m
-                    , MonadThrow m
-                    , MonadIO m
-                    )
-                 => RunMode
-                 -> m NoContent
-deleteSecretKeys runMode = do
-    db <- V0.askWalletDB
-    developmentOnly runMode (V0.deleteAllSecretKeys >> V0.testReset db >> return NoContent)
-
-throwSomething :: MonadThrow m => RunMode -> m NoContent
-throwSomething runMode =
-    developmentOnly runMode $ error "A generic error happened in dev mode"
diff --git a/wallet-new/src/Cardano/Wallet/API/Internal.hs b/wallet-new/src/Cardano/Wallet/API/Internal.hs
new file mode 100644
index 00000000000..e64cc7e287a
--- /dev/null
+++ b/wallet-new/src/Cardano/Wallet/API/Internal.hs
@@ -0,0 +1,23 @@
+-- | This module contains the top level API definition for frontend-related
+-- tasks.  The API endpoints presented here are intended for use with the
+-- Daedalus client, and aren't useful for wallets, exchanges, and other users.
+module Cardano.Wallet.API.Internal where
+
+import           Cardano.Wallet.API.Response (ValidJSON)
+import           Cardano.Wallet.API.Types (Tags)
+import           Servant ((:<|>), (:>), DeleteNoContent, NoContent, Post,
+                     Summary)
+
+type API = Tags '["Internal"] :>
+    (    "apply-update"
+        :> Summary "Apply the next available update"
+        :> Post '[ValidJSON] NoContent
+
+    :<|> "postpone-update"
+        :> Summary "Discard and postpone the next available update"
+        :> Post '[ValidJSON] NoContent
+
+    :<|> "reset-wallet-state"
+        :> Summary "Clear wallet state and all associated secret keys"
+        :> DeleteNoContent '[ValidJSON] NoContent
+    )
diff --git a/wallet-new/src/Cardano/Wallet/API/Internal/Handlers.hs b/wallet-new/src/Cardano/Wallet/API/Internal/Handlers.hs
new file mode 100644
index 00000000000..a2f25bf3587
--- /dev/null
+++ b/wallet-new/src/Cardano/Wallet/API/Internal/Handlers.hs
@@ -0,0 +1,50 @@
+{-# LANGUAGE DataKinds             #-}
+{-# LANGUAGE FlexibleInstances     #-}
+{-# LANGUAGE MultiParamTypeClasses #-}
+{-# LANGUAGE PolyKinds             #-}
+{-# LANGUAGE RankNTypes            #-}
+{-# LANGUAGE TypeFamilies          #-}
+
+module Cardano.Wallet.API.Internal.Handlers where
+
+import           Universum
+
+import           Control.Monad.Catch (MonadThrow)
+import           Servant
+
+import           Cardano.Wallet.API.V1.Migration
+import           Cardano.Wallet.Server.CLI (RunMode (..), isDebugMode)
+
+import qualified Cardano.Wallet.API.Internal as Internal
+import qualified Pos.Client.KeyStorage as V0
+import qualified Pos.Wallet.Web.Methods.Misc as V0
+import qualified Pos.Wallet.Web.State as V0
+
+
+-- | Until we depend from V0 logic to implement the each 'Handler' we
+-- still need the natural transformation here.
+handlers
+    :: (forall a. MonadV1 a -> Handler a)
+    -> RunMode
+    -> Server Internal.API
+handlers naturalTransformation runMode =
+    let
+        handlers' =
+                 V0.applyUpdate
+            :<|> V0.postponeUpdate
+            :<|> resetWalletState runMode
+    in
+        hoistServer (Proxy @Internal.API) naturalTransformation handlers'
+
+
+resetWalletState
+    :: (V0.WalletDbReader ctx m, V0.MonadKeys m, MonadThrow m, MonadIO m)
+    => RunMode
+    -> m NoContent
+resetWalletState runMode
+    | isDebugMode runMode = do
+        V0.deleteAllSecretKeys
+        void (V0.askWalletDB >>= V0.testReset)
+        return NoContent
+    | otherwise =
+        throwM err403
diff --git a/wallet-new/src/Cardano/Wallet/API/V1/Accounts.hs b/wallet-new/src/Cardano/Wallet/API/V1/Accounts.hs
index 620c52a121f..dc47b2f7a8e 100644
--- a/wallet-new/src/Cardano/Wallet/API/V1/Accounts.hs
+++ b/wallet-new/src/Cardano/Wallet/API/V1/Accounts.hs
@@ -31,4 +31,10 @@ type API
           :> Summary "Update an Account for the given Wallet."
           :> ReqBody '[ValidJSON] (Update Account)
           :> Put '[ValidJSON] (WalletResponse Account)
+    :<|> "wallets" :> CaptureWalletId :> "accounts"
+          :> CaptureAccountId
+          :> Summary "Redeem a certificate"
+          :> "certificates"
+          :> ReqBody '[ValidJSON] Redemption
+          :> Post '[ValidJSON] (WalletResponse Transaction)
     )
diff --git a/wallet-new/src/Cardano/Wallet/API/V1/Internal.hs b/wallet-new/src/Cardano/Wallet/API/V1/Internal.hs
new file mode 100644
index 00000000000..e6ca0d71597
--- /dev/null
+++ b/wallet-new/src/Cardano/Wallet/API/V1/Internal.hs
@@ -0,0 +1,22 @@
+{-# LANGUAGE DeriveGeneric #-}
+
+-- | This module contains the top level API definition for frontend-related
+-- tasks.  The API endpoints presented here are intended for use with the
+-- Daedalus client, and aren't useful for wallets, exchanges, and other users.
+module Cardano.Wallet.API.V1.Internal where
+
+import           Servant
+
+type API = Tags '["Internal"] :>
+    (    "apply-update"
+        :> Summary "Apply the next available update"
+        :> Post '[ValidJSON] NoContent
+
+    :<|> "postpone-update"
+        :> Summary "Discard and postpone the next available update"
+        :> Post '[ValidJSON] NoContent
+
+    :<|> "reset-wallet-state"
+        :> Summary "Clear wallet state and all associated secret keys"
+        :> DeleteNoContent '[ValidJSON] NoContent
+    )
diff --git a/wallet-new/src/Cardano/Wallet/API/V1/Internal/Update.hs b/wallet-new/src/Cardano/Wallet/API/V1/Internal/Update.hs
new file mode 100644
index 00000000000..10c0aa1142d
--- /dev/null
+++ b/wallet-new/src/Cardano/Wallet/API/V1/Internal/Update.hs
@@ -0,0 +1,13 @@
+module Cardano.Wallet.API.V1.Internal.Update where
+
+import           Servant
+
+import           Cardano.Wallet.API.Response (ValidJSON)
+
+type API =
+    "update"
+    :> ( "apply"
+        :> Post '[ValidJSON] NoContent
+    :<|> "postpone"
+        :> Post '[ValidJSON] NoContent
+    )
diff --git a/wallet-new/src/Cardano/Wallet/API/V1/LegacyHandlers.hs b/wallet-new/src/Cardano/Wallet/API/V1/LegacyHandlers.hs
index c225e494df4..081c59a215d 100644
--- a/wallet-new/src/Cardano/Wallet/API/V1/LegacyHandlers.hs
+++ b/wallet-new/src/Cardano/Wallet/API/V1/LegacyHandlers.hs
@@ -45,9 +45,17 @@ handlers :: ( HasConfigurations
             -> TVar NtpStatus
             -> Server V1.API
 handlers naturalTransformation pm diffusion ntpStatus =
-         hoistServer (Proxy @Addresses.API) naturalTransformation Addresses.handlers
-    :<|> hoistServer (Proxy @Wallets.API) naturalTransformation Wallets.handlers
-    :<|> hoistServer (Proxy @Accounts.API) naturalTransformation Accounts.handlers
-    :<|> hoistServer (Proxy @Transactions.API) naturalTransformation (Transactions.handlers pm (sendTx diffusion))
-    :<|> hoistServer (Proxy @Settings.API) naturalTransformation Settings.handlers
-    :<|> hoistServer (Proxy @Info.API) naturalTransformation (Info.handlers diffusion ntpStatus)
+         hoist' (Proxy @Addresses.API) Addresses.handlers
+    :<|> hoist' (Proxy @Wallets.API) Wallets.handlers
+    :<|> hoist' (Proxy @Accounts.API) (Accounts.handlers pm sendTx')
+    :<|> hoist' (Proxy @Transactions.API) (Transactions.handlers pm sendTx')
+    :<|> hoist' (Proxy @Settings.API) Settings.handlers
+    :<|> hoist' (Proxy @Info.API) (Info.handlers diffusion ntpStatus)
+  where
+    hoist'
+        :: forall (api :: *). HasServer api '[]
+        => Proxy api
+        -> ServerT api MonadV1
+        -> Server api
+    hoist' p = hoistServer p naturalTransformation
+    sendTx' = sendTx diffusion
diff --git a/wallet-new/src/Cardano/Wallet/API/V1/LegacyHandlers/Accounts.hs b/wallet-new/src/Cardano/Wallet/API/V1/LegacyHandlers/Accounts.hs
index 36034ea3c6b..c765d5f53d8 100644
--- a/wallet-new/src/Cardano/Wallet/API/V1/LegacyHandlers/Accounts.hs
+++ b/wallet-new/src/Cardano/Wallet/API/V1/LegacyHandlers/Accounts.hs
@@ -5,27 +5,35 @@ module Cardano.Wallet.API.V1.LegacyHandlers.Accounts
 
 import           Universum
 
-import           Cardano.Wallet.API.Request
-import           Cardano.Wallet.API.Response
-import qualified Cardano.Wallet.API.V1.Accounts as Accounts
-import           Cardano.Wallet.API.V1.Migration
-import           Cardano.Wallet.API.V1.Types
 import qualified Data.IxSet.Typed as IxSet
+import           Servant
 
+import           Pos.Core.Txp (TxAux)
+import           Pos.Crypto (ProtocolMagic)
+import qualified Pos.Util.Servant as V0
 import qualified Pos.Wallet.Web.Account as V0
 import qualified Pos.Wallet.Web.ClientTypes.Types as V0
 import qualified Pos.Wallet.Web.Methods.Logic as V0
-import           Servant
+import qualified Pos.Wallet.Web.Methods.Redeem as V0
+
+import           Cardano.Wallet.API.Request
+import           Cardano.Wallet.API.Response
+import qualified Cardano.Wallet.API.V1.Accounts as Accounts
+import           Cardano.Wallet.API.V1.Migration
+import           Cardano.Wallet.API.V1.Types
 
 handlers
     :: HasConfigurations
-    => ServerT Accounts.API MonadV1
-handlers =
+    => ProtocolMagic
+    -> (TxAux -> MonadV1 Bool)
+    -> ServerT Accounts.API MonadV1
+handlers pm submitTx =
          deleteAccount
     :<|> getAccount
     :<|> listAccounts
     :<|> newAccount
     :<|> updateAccount
+    :<|> redeemAda pm submitTx
 
 deleteAccount
     :: (V0.MonadWalletLogic ctx m)
@@ -68,3 +76,32 @@ updateAccount wId accIdx accUpdate = do
     accMeta <- migrate accUpdate
     cAccount <- V0.updateAccount newAccId accMeta
     single <$> (migrate cAccount)
+
+redeemAda
+    :: HasConfigurations
+    => ProtocolMagic
+    -> (TxAux -> MonadV1 Bool)
+    -> WalletId
+    -> AccountIndex
+    -> Redemption
+    -> MonadV1 (WalletResponse Transaction)
+redeemAda pm submitTx walletId accountIndex r = do
+    let ShieldedRedemptionCode seed = redemptionRedemptionCode r
+        V1 spendingPassword = redemptionSpendingPassword r
+    accountId <- migrate (walletId, accountIndex)
+    let caccountId = V0.encodeCType accountId
+    fmap single . migrate =<< case redemptionMnemonic r of
+        Just (RedemptionMnemonic mnemonic) -> do
+            let phrase = V0.CBackupPhrase mnemonic
+            let cpaperRedeem = V0.CPaperVendWalletRedeem
+                    { V0.pvWalletId = caccountId
+                    , V0.pvSeed = seed
+                    , V0.pvBackupPhrase = phrase
+                    }
+            V0.redeemAdaPaperVend pm submitTx spendingPassword cpaperRedeem
+        Nothing -> do
+            let cwalletRedeem = V0.CWalletRedeem
+                    { V0.crWalletId = caccountId
+                    , V0.crSeed = seed
+                    }
+            V0.redeemAda pm submitTx spendingPassword cwalletRedeem
diff --git a/wallet-new/src/Cardano/Wallet/API/V1/LegacyHandlers/Internal/Update.hs b/wallet-new/src/Cardano/Wallet/API/V1/LegacyHandlers/Internal/Update.hs
new file mode 100644
index 00000000000..2179e8ece1f
--- /dev/null
+++ b/wallet-new/src/Cardano/Wallet/API/V1/LegacyHandlers/Internal/Update.hs
@@ -0,0 +1,17 @@
+module Cardano.Wallet.API.V1.LegacyHandlers.Internal.Update where
+
+import           Servant
+
+import qualified Pos.Wallet.Web.Methods.Misc as V0
+
+import qualified Cardano.Wallet.API.V1.Internal.Update as Update
+import           Cardano.Wallet.API.V1.Migration (MonadV1)
+
+handlers :: ServerT Update.API MonadV1
+handlers = applyUpdate :<|> postponeUpdate
+
+applyUpdate :: MonadV1 NoContent
+applyUpdate = V0.applyUpdate
+
+postponeUpdate :: MonadV1 NoContent
+postponeUpdate = V0.postponeUpdate
diff --git a/wallet-new/src/Cardano/Wallet/API/V1/LegacyHandlers/Wallets.hs b/wallet-new/src/Cardano/Wallet/API/V1/LegacyHandlers/Wallets.hs
index 02ab089f731..3521374597a 100644
--- a/wallet-new/src/Cardano/Wallet/API/V1/LegacyHandlers/Wallets.hs
+++ b/wallet-new/src/Cardano/Wallet/API/V1/LegacyHandlers/Wallets.hs
@@ -83,7 +83,7 @@ newWallet NewWallet{..} = do
     let newWalletHandler CreateWallet  = V0.newWallet
         newWalletHandler RestoreWallet = V0.restoreWalletFromSeed
         (V1 spendingPassword) = fromMaybe (V1 mempty) newwalSpendingPassword
-        (V1 backupPhrase) = newwalBackupPhrase
+        (BackupPhrase backupPhrase) = newwalBackupPhrase
     initMeta <- V0.CWalletMeta <$> pure newwalName
                               <*> migrate newwalAssuranceLevel
                               <*> pure 0
diff --git a/wallet-new/src/Cardano/Wallet/API/V1/Migration/Types.hs b/wallet-new/src/Cardano/Wallet/API/V1/Migration/Types.hs
index ee2a6856b5b..761b98c8d25 100644
--- a/wallet-new/src/Cardano/Wallet/API/V1/Migration/Types.hs
+++ b/wallet-new/src/Cardano/Wallet/API/V1/Migration/Types.hs
@@ -3,8 +3,8 @@
 {-# LANGUAGE LambdaCase           #-}
 {-# LANGUAGE TypeSynonymInstances #-}
 
-module Cardano.Wallet.API.V1.Migration.Types (
-      Migrate(..)
+module Cardano.Wallet.API.V1.Migration.Types
+    ( Migrate(..)
     , migrate
     ) where
 
@@ -28,6 +28,7 @@ import qualified Pos.Core.Slotting as Core
 import qualified Pos.Core.Txp as Txp
 import           Pos.Crypto (decodeHash)
 import qualified Pos.Txp.Toil.Types as V0
+import           Pos.Util.Mnemonic (Mnemonic)
 import qualified Pos.Util.Servant as V0
 import qualified Pos.Wallet.Web.ClientTypes.Instances ()
 import qualified Pos.Wallet.Web.ClientTypes.Types as V0
@@ -121,7 +122,11 @@ instance Migrate V0.CCoin (V1 Core.Coin) where
 instance Migrate (V1 Core.Coin) V0.CCoin where
     eitherMigrate (V1 c) = pure (V0.encodeCType c)
 
---
+instance (n ~ m, n ~ 12)
+    => Migrate (Mnemonic n) (V0.CBackupPhrase m) where
+    eitherMigrate =
+        Right . V0.CBackupPhrase
+
 instance Migrate (V0.CId V0.Wal) V1.WalletId where
     eitherMigrate (V0.CId (V0.CHash h)) = pure (V1.WalletId h)
 
diff --git a/wallet-new/src/Cardano/Wallet/API/V1/Swagger.hs b/wallet-new/src/Cardano/Wallet/API/V1/Swagger.hs
index ba15159dce5..242d10fbc32 100644
--- a/wallet-new/src/Cardano/Wallet/API/V1/Swagger.hs
+++ b/wallet-new/src/Cardano/Wallet/API/V1/Swagger.hs
@@ -26,7 +26,6 @@ import           Cardano.Wallet.TypeLits (KnownSymbols (..))
 import qualified Pos.Core as Core
 import           Pos.Core.Update (SoftwareVersion)
 import           Pos.Util.CompileInfo (CompileTimeInfo, ctiGitRevision)
-import           Pos.Util.Mnemonic (Mnemonic)
 import           Pos.Util.Servant (LoggingApi)
 import           Pos.Wallet.Web.Swagger.Instances.Schema ()
 
@@ -846,7 +845,7 @@ api (compileInfo, curSoftwareVersion) walletAPI mkDescription = toSwagger wallet
   & host ?~ "127.0.0.1:8090"
   & info.description ?~ (mkDescription $ DescriptionEnvironment
     { deErrorExample          = decodeUtf8 $ encodePretty Errors.WalletNotFound
-    , deMnemonicExample       = decodeUtf8 $ encode (genExample @(Mnemonic 12))
+    , deMnemonicExample       = decodeUtf8 $ encode (genExample @BackupPhrase)
     , deDefaultPerPage        = fromString (show defaultPerPageEntries)
     , deWalletErrorTable      = errorsDescription
     , deGitRevision           = ctiGitRevision compileInfo
diff --git a/wallet-new/src/Cardano/Wallet/API/V1/Swagger/Example.hs b/wallet-new/src/Cardano/Wallet/API/V1/Swagger/Example.hs
index ca6fb73e6dd..b92570ff2da 100644
--- a/wallet-new/src/Cardano/Wallet/API/V1/Swagger/Example.hs
+++ b/wallet-new/src/Cardano/Wallet/API/V1/Swagger/Example.hs
@@ -6,19 +6,18 @@ import           Cardano.Wallet.API.Response
 import           Cardano.Wallet.API.V1.Types
 import           Cardano.Wallet.Orphans.Arbitrary ()
 import           Data.Default (Default (def))
-import qualified Data.Map.Strict as Map
 import           Node (NodeId (..))
 import           Test.QuickCheck (Arbitrary (..), Gen, listOf1, oneof)
 
 import           Pos.Client.Txp.Util (InputSelectionPolicy (..))
-import qualified Pos.Core.Common as Core
-import qualified Pos.Crypto.Signing as Core
-import           Pos.Util.Mnemonic (Mnemonic)
 import           Pos.Wallet.Web.ClientTypes (CUpdateInfo)
 import           Pos.Wallet.Web.Methods.Misc (WalletStateSnapshot (..))
-
 import           Test.Pos.Wallet.Arbitrary.Web.ClientTypes ()
 
+import qualified Data.Map.Strict as Map
+import qualified Pos.Core.Common as Core
+import qualified Pos.Crypto.Signing as Core
+
 
 class Arbitrary a => Example a where
     example :: Gen a
@@ -65,11 +64,8 @@ instance Example (V1 Address) where
                     , Core.SingleKeyDistr <$> arbitrary
                     ]
 
-instance Example (Mnemonic 12)  where
-    example = pure def
-
-instance Example (V1 (Mnemonic 12)) where
-    example = V1 <$> example
+instance Example BackupPhrase where
+    example = pure (BackupPhrase def)
 
 instance Example Address
 instance Example Metadata
diff --git a/wallet-new/src/Cardano/Wallet/API/V1/Types.hs b/wallet-new/src/Cardano/Wallet/API/V1/Types.hs
index 0785181ba8d..d23d6da4107 100644
--- a/wallet-new/src/Cardano/Wallet/API/V1/Types.hs
+++ b/wallet-new/src/Cardano/Wallet/API/V1/Types.hs
@@ -1,11 +1,13 @@
 {-# LANGUAGE ConstraintKinds            #-}
 {-# LANGUAGE DeriveGeneric              #-}
+{-# LANGUAGE DerivingStrategies         #-}
 {-# LANGUAGE ExplicitNamespaces         #-}
 {-# LANGUAGE GeneralizedNewtypeDeriving #-}
 {-# LANGUAGE KindSignatures             #-}
 {-# LANGUAGE LambdaCase                 #-}
 {-# LANGUAGE OverloadedStrings          #-}
 {-# LANGUAGE PolyKinds                  #-}
+{-# LANGUAGE StrictData                 #-}
 {-# LANGUAGE TemplateHaskell            #-}
 
 -- The hlint parser fails on the `pattern` function, so we disable the
@@ -72,6 +74,10 @@ module Cardano.Wallet.API.V1.Types (
   , NodeInfo (..)
   , TimeInfo(..)
   , SubscriptionStatus(..)
+  , Redemption(..)
+  , RedemptionMnemonic(..)
+  , BackupPhrase(..)
+  , ShieldedRedemptionCode(..)
   -- * Some types for the API
   , CaptureWalletId
   , CaptureAccountId
@@ -259,23 +265,6 @@ instance ByteArray.ByteArrayAccess a => ByteArray.ByteArrayAccess (V1 a) where
    length (V1 a) = ByteArray.length a
    withByteArray (V1 a) callback = ByteArray.withByteArray a callback
 
-instance Arbitrary (V1 (Mnemonic 12)) where
-    arbitrary =
-        V1 <$> arbitrary
-
-instance ToJSON (V1 (Mnemonic 12)) where
-    toJSON =
-        toJSON . unV1
-
-instance FromJSON (V1 (Mnemonic 12)) where
-    parseJSON =
-        fmap V1 . parseJSON
-
-instance ToSchema (V1 (Mnemonic 12)) where
-    declareNamedSchema _ = do
-        NamedSchema _ schm <- declareNamedSchema (Proxy @(Mnemonic 12))
-        return $ NamedSchema (Just "V1BackupPhrase") schm
-
 mkPassPhrase :: Text -> Either Text Core.PassPhrase
 mkPassPhrase text =
     case Base16.decode text of
@@ -405,7 +394,6 @@ instance Monoid (V1 Core.PassPhrase) where
 
 type WalletName = Text
 
-
 -- | Wallet's Assurance Level
 data AssuranceLevel =
     NormalAssurance
@@ -481,9 +469,25 @@ instance BuildableSafeGen WalletOperation where
     buildSafeGen _ RestoreWallet = "restore"
 
 
+newtype BackupPhrase = BackupPhrase
+    { unBackupPhrase :: Mnemonic 12
+    }
+    deriving stock (Eq, Show)
+    deriving newtype (ToJSON, FromJSON, Arbitrary)
+
+deriveSafeBuildable ''BackupPhrase
+instance BuildableSafeGen BackupPhrase where
+    buildSafeGen _ _  = "<backup phrase>"
+
+instance ToSchema BackupPhrase where
+    declareNamedSchema _ =
+        pure
+            . NamedSchema (Just "V1BackupPhrase")
+            $ toSchema (Proxy @(Mnemonic 12))
+
 -- | A type modelling the request for a new 'Wallet'.
 data NewWallet = NewWallet {
-      newwalBackupPhrase     :: !(V1 (Mnemonic 12))
+      newwalBackupPhrase     :: !BackupPhrase
     , newwalSpendingPassword :: !(Maybe SpendingPassword)
     , newwalAssuranceLevel   :: !AssuranceLevel
     , newwalName             :: !WalletName
@@ -1770,6 +1774,81 @@ instance BuildableSafeGen NodeInfo where
         nfoLocalTimeInformation
         (Map.toList nfoSubscriptionStatus)
 
+-- | A redemption mnemonic.
+newtype RedemptionMnemonic = RedemptionMnemonic
+    { unRedemptionMnemonic :: Mnemonic 9
+    }
+    deriving stock (Eq, Show, Generic)
+    deriving newtype (ToJSON, FromJSON, Arbitrary)
+
+instance ToSchema RedemptionMnemonic where
+    declareNamedSchema _ = pure $
+        NamedSchema (Just "RedemptionMnemonic") (toSchema (Proxy @(Mnemonic 9)))
+
+-- | A shielded redemption code.
+newtype ShieldedRedemptionCode = ShieldedRedemptionCode
+    { unShieldedRedemptionCode :: Text
+    } deriving (Eq, Show, Generic)
+      deriving newtype (ToJSON, FromJSON)
+
+-- | This instance could probably be improved. A 'ShieldedRedemptionCode' is
+-- a hash of the redemption key.
+instance Arbitrary ShieldedRedemptionCode where
+    arbitrary = ShieldedRedemptionCode <$> arbitrary
+
+instance ToSchema ShieldedRedemptionCode where
+    declareNamedSchema _ =
+        pure
+            $ NamedSchema (Just "ShieldedRedemptionCode") $ mempty
+            & type_ .~ SwaggerString
+
+deriveSafeBuildable ''ShieldedRedemptionCode
+instance BuildableSafeGen ShieldedRedemptionCode where
+    buildSafeGen _ _ =
+        bprint "<shielded redemption code>"
+
+-- | The request body for redeeming some Ada.
+data Redemption = Redemption
+    { redemptionRedemptionCode   :: ShieldedRedemptionCode
+    -- ^ The redemption code associated with the Ada to redeem.
+    , redemptionMnemonic         :: Maybe RedemptionMnemonic
+    -- ^ An optional mnemonic. This mnemonic was included with paper
+    -- certificates, and the presence of this field indicates that we're
+    -- doing a paper vend.
+    , redemptionSpendingPassword :: SpendingPassword
+    -- ^ The user must provide a spending password that matches the wallet that
+    -- will be receiving the redemption funds.
+    } deriving (Eq, Show, Generic)
+
+deriveSafeBuildable ''Redemption
+instance BuildableSafeGen Redemption where
+    buildSafeGen sl r = bprint ("{"
+        %" redemptionCode="%buildSafe sl
+        %" mnemonic=<mnemonic>"
+        %" spendingPassword="%buildSafe sl
+        %" }")
+        (redemptionRedemptionCode r)
+        (redemptionSpendingPassword r)
+
+deriveJSON Serokell.defaultOptions  ''Redemption
+
+instance ToSchema Redemption where
+    declareNamedSchema =
+        genericSchemaDroppingPrefix "redemption" (\(--^) props -> props
+            & "redemptionCode"
+            --^ "The redemption code associated with the Ada to redeem."
+            & "mnemonic"
+            --^ ( "An optional mnemonic. This must be provided for a paper "
+                <> "certificate redemption."
+                )
+            & "spendingPassword"
+            --^ ( "An optional spending password. This must match the password "
+                <> "for the provided wallet ID and account index."
+                )
+        )
+
+instance Arbitrary Redemption where
+    arbitrary = Redemption <$> arbitrary <*> arbitrary <*> arbitrary
 
 --
 -- POST/PUT requests isomorphisms
diff --git a/wallet-new/src/Cardano/Wallet/Client.hs b/wallet-new/src/Cardano/Wallet/Client.hs
index 3f175d11d83..8a826874916 100644
--- a/wallet-new/src/Cardano/Wallet/Client.hs
+++ b/wallet-new/src/Cardano/Wallet/Client.hs
@@ -99,6 +99,8 @@ data WalletClient m
         :: WalletId -> New Account -> Resp m Account
     , updateAccount
          :: WalletId -> AccountIndex -> Update Account -> Resp m Account
+    , redeemAda
+        :: WalletId -> AccountIndex -> Redemption -> Resp m Transaction
     -- transactions endpoints
     , postTransaction
          :: Payment -> Resp m Transaction
@@ -183,44 +185,46 @@ getWallets = paginateAll . getWalletIndexPaged
 hoistClient :: (forall x. m x -> n x) -> WalletClient m -> WalletClient n
 hoistClient phi wc = WalletClient
     { getAddressIndexPaginated =
-         \x -> phi . getAddressIndexPaginated wc x
+        \x -> phi . getAddressIndexPaginated wc x
     , postAddress =
-         phi . postAddress wc
+        phi . postAddress wc
     , getAddress =
-         phi . getAddress wc
+        phi . getAddress wc
     , postWallet =
-         phi . postWallet wc
+        phi . postWallet wc
     , getWalletIndexFilterSorts =
-         \x y p -> phi . getWalletIndexFilterSorts wc x y p
+        \x y p -> phi . getWalletIndexFilterSorts wc x y p
     , updateWalletPassword =
-         \x -> phi . updateWalletPassword wc x
+        \x -> phi . updateWalletPassword wc x
     , deleteWallet =
-         phi . deleteWallet wc
+        phi . deleteWallet wc
     , getWallet =
-         phi . getWallet wc
+        phi . getWallet wc
     , updateWallet =
-         \x -> phi . updateWallet wc x
+        \x -> phi . updateWallet wc x
     , deleteAccount =
-         \x -> phi . deleteAccount wc x
+        \x -> phi . deleteAccount wc x
     , getAccount =
-         \x -> phi . getAccount wc x
+        \x -> phi . getAccount wc x
     , getAccountIndexPaged =
-         \x mp -> phi . getAccountIndexPaged wc x mp
+        \x mp -> phi . getAccountIndexPaged wc x mp
     , postAccount =
-         \x -> phi . postAccount wc x
+        \x -> phi . postAccount wc x
     , updateAccount =
-         \x y -> phi . updateAccount wc x y
+        \x y -> phi . updateAccount wc x y
+    , redeemAda =
+        \x y -> phi . redeemAda wc x y
     , postTransaction =
-         phi . postTransaction wc
+        phi . postTransaction wc
     , getTransactionIndexFilterSorts =
-         \wid maid maddr mp mpp f ->
-             phi . getTransactionIndexFilterSorts wc wid maid maddr mp mpp f
+        \wid maid maddr mp mpp f ->
+            phi . getTransactionIndexFilterSorts wc wid maid maddr mp mpp f
     , getTransactionFee =
-         phi . getTransactionFee wc
+        phi . getTransactionFee wc
     , getNodeSettings =
-         phi (getNodeSettings wc)
+        phi (getNodeSettings wc)
     , getNodeInfo =
-         phi (getNodeInfo wc)
+        phi (getNodeInfo wc)
     }
 
 -- | Generalize a @'WalletClient' 'IO'@ into a @('MonadIO' m) =>
diff --git a/wallet-new/src/Cardano/Wallet/Client/Http.hs b/wallet-new/src/Cardano/Wallet/Client/Http.hs
index d628ed27fc3..423ccacafa0 100644
--- a/wallet-new/src/Cardano/Wallet/Client/Http.hs
+++ b/wallet-new/src/Cardano/Wallet/Client/Http.hs
@@ -116,6 +116,8 @@ mkHttpClient baseUrl manager = WalletClient
         = \w -> run . postAccountR w
     , updateAccount
         = \x y -> run . updateAccountR x y
+    , redeemAda
+        = run ... redeemAdaR
     -- transactions endpoints
     , postTransaction
         = run . postTransactionR
@@ -166,6 +168,7 @@ mkHttpClient baseUrl manager = WalletClient
         :<|> getAccountIndexPagedR
         :<|> postAccountR
         :<|> updateAccountR
+        :<|> redeemAdaR
         = accountsAPI
 
     postTransactionR
diff --git a/wallet-new/src/Cardano/Wallet/LegacyServer.hs b/wallet-new/src/Cardano/Wallet/LegacyServer.hs
index 545c712e34a..c7828f376ef 100644
--- a/wallet-new/src/Cardano/Wallet/LegacyServer.hs
+++ b/wallet-new/src/Cardano/Wallet/LegacyServer.hs
@@ -3,24 +3,25 @@ module Cardano.Wallet.LegacyServer where
 
 import           Universum
 
+import           Servant
+
 import           Cardano.Wallet.API
 import           Cardano.Wallet.API.V1.Migration (HasCompileInfo,
                      HasConfigurations)
-
-import qualified Cardano.Wallet.API.Development.LegacyHandlers as Dev
-import qualified Cardano.Wallet.API.V0.Handlers as V0
-import qualified Cardano.Wallet.API.V1.LegacyHandlers as V1
 import           Cardano.Wallet.API.V1.Swagger (swaggerSchemaUIServer)
-import qualified Cardano.Wallet.API.V1.Swagger as Swagger
 import           Cardano.Wallet.Server.CLI (RunMode (..))
-
 import           Ntp.Client (NtpStatus)
 import           Pos.Crypto (ProtocolMagic)
 import           Pos.Infra.Diffusion.Types (Diffusion (..))
 import           Pos.Update.Configuration (curSoftwareVersion)
 import           Pos.Util.CompileInfo (compileInfo)
 import           Pos.Wallet.Web.Mode (WalletWebMode)
-import           Servant
+
+import qualified Cardano.Wallet.API.Internal.Handlers as Internal
+import qualified Cardano.Wallet.API.V0.Handlers as V0
+import qualified Cardano.Wallet.API.V1.LegacyHandlers as V1
+import qualified Cardano.Wallet.API.V1.Swagger as Swagger
+
 
 -- | This function has the tricky task of plumbing different versions of the API,
 -- with potentially different monadic stacks into a uniform @Server@ we can use
@@ -30,25 +31,17 @@ walletServer :: (HasConfigurations, HasCompileInfo)
              -> ProtocolMagic
              -> Diffusion WalletWebMode
              -> TVar NtpStatus
+             -> RunMode
              -> Server WalletAPI
-walletServer natV0 pm diffusion ntpStatus = v0Handler :<|> v1Handler
-  where
-    v0Handler    = V0.handlers natV0 pm diffusion ntpStatus
-    v1Handler    = V1.handlers natV0 pm diffusion ntpStatus
-
-
-walletDevServer
-    :: (HasConfigurations, HasCompileInfo)
-    => (forall a. WalletWebMode a -> Handler a)
-    -> ProtocolMagic
-    -> Diffusion WalletWebMode
-    -> TVar NtpStatus
-    -> RunMode
-    -> Server WalletDevAPI
-walletDevServer natV0 pm diffusion ntpStatus runMode = devHandler :<|> walletHandler
+walletServer natV0 pm diffusion ntpStatus runMode =
+         v0Handler
+    :<|> v0Handler
+    :<|> v1Handler
+    :<|> internalHandler
   where
-    devHandler    = Dev.handlers natV0 runMode
-    walletHandler = walletServer natV0 pm diffusion ntpStatus
+    v0Handler       = V0.handlers natV0 pm diffusion ntpStatus
+    v1Handler       = V1.handlers natV0 pm diffusion ntpStatus
+    internalHandler = Internal.handlers natV0 runMode
 
 
 walletDocServer
@@ -56,13 +49,6 @@ walletDocServer
     => Server WalletDocAPI
 walletDocServer = v0DocHandler :<|> v1DocHandler
   where
+    v1API'       = Proxy :: Proxy (V1API :<|> InternalAPI)
     v0DocHandler = swaggerSchemaUIServer (Swagger.api (compileInfo, curSoftwareVersion) v0API Swagger.highLevelShortDescription)
-    v1DocHandler = swaggerSchemaUIServer (Swagger.api (compileInfo, curSoftwareVersion) v1API Swagger.highLevelDescription)
-
-
-walletDevDocServer
-    :: (HasConfigurations, HasCompileInfo)
-    => Server WalletDevDocAPI
-walletDevDocServer = devDocHandler :<|> walletDocServer
-  where
-    devDocHandler = swaggerSchemaUIServer (Swagger.api (compileInfo, curSoftwareVersion) devAPI Swagger.highLevelShortDescription)
+    v1DocHandler = swaggerSchemaUIServer (Swagger.api (compileInfo, curSoftwareVersion) v1API' Swagger.highLevelDescription)
diff --git a/wallet-new/src/Cardano/Wallet/Server.hs b/wallet-new/src/Cardano/Wallet/Server.hs
index 5946d9b0762..8ef6f11c4b7 100644
--- a/wallet-new/src/Cardano/Wallet/Server.hs
+++ b/wallet-new/src/Cardano/Wallet/Server.hs
@@ -1,55 +1,49 @@
 module Cardano.Wallet.Server
     ( walletServer
-    , walletDevServer
     , walletDocServer
-    , walletDevDocServer
     ) where
 
-import           Servant
 import           Universum
 
+import           Servant
+
 import           Cardano.Wallet.API
-import qualified Cardano.Wallet.API.Development.Handlers as Dev
-import qualified Cardano.Wallet.API.V1.Handlers as V1
 import           Cardano.Wallet.API.V1.Swagger (swaggerSchemaUIServer)
-import qualified Cardano.Wallet.API.V1.Swagger as Swagger
 import           Cardano.Wallet.Server.CLI (RunMode (..))
 import           Cardano.Wallet.WalletLayer (ActiveWalletLayer)
 import           Pos.Update.Configuration (HasUpdateConfiguration,
                      curSoftwareVersion)
 import           Pos.Util.CompileInfo (HasCompileInfo, compileInfo)
 
+import qualified Cardano.Wallet.API.V1.Handlers as V1
+import qualified Cardano.Wallet.API.V1.Swagger as Swagger
+
+
 -- | Serve the REST interface to the wallet
 --
 -- NOTE: Unlike the legacy server, the handlers will not run in a special
 -- Cardano monad because they just interfact with the Wallet object.
 walletServer :: ActiveWalletLayer IO
+             -> RunMode
              -> Server WalletAPI
-walletServer w = v0Handler :<|> v1Handler
+walletServer w _ =
+         v0Handler
+    :<|> v0Handler
+    :<|> v1Handler
+    :<|> internalHandler
   where
     -- TODO: Not sure if we want to support the V0 API with the new wallet.
     -- For now I'm assuming we're not going to.
     --
     -- TODO: It'd be nicer to not throw an exception here, but servant doesn't
     -- make this very easy at the moment.
-    v0Handler    = error "V0 API no longer supported"
-    v1Handler    = V1.handlers w
+    v0Handler       = error "V0 API no longer supported"
+    v1Handler       = V1.handlers w
+    internalHandler = error "Internal API not yet defined"
 
-walletDevServer :: ActiveWalletLayer IO
-             -> RunMode
-             -> Server WalletDevAPI
-walletDevServer w runMode = devHandler :<|> walletHandler
-  where
-    devHandler    = Dev.handlers runMode
-    walletHandler = walletServer w
 
 walletDocServer :: (HasCompileInfo, HasUpdateConfiguration) => Server WalletDocAPI
 walletDocServer = v0DocHandler :<|> v1DocHandler
   where
     v0DocHandler = error "V0 API no longer supported"
     v1DocHandler = swaggerSchemaUIServer (Swagger.api (compileInfo, curSoftwareVersion) v1API Swagger.highLevelDescription)
-
-walletDevDocServer :: (HasCompileInfo, HasUpdateConfiguration) => Server WalletDevDocAPI
-walletDevDocServer = devDocHandler :<|> walletDocServer
-  where
-    devDocHandler = swaggerSchemaUIServer (Swagger.api (compileInfo, curSoftwareVersion) devAPI Swagger.highLevelShortDescription)
diff --git a/wallet-new/src/Cardano/Wallet/Server/Plugins.hs b/wallet-new/src/Cardano/Wallet/Server/Plugins.hs
index b7f65f6c1f8..a55dfe9b6d1 100644
--- a/wallet-new/src/Cardano/Wallet/Server/Plugins.hs
+++ b/wallet-new/src/Cardano/Wallet/Server/Plugins.hs
@@ -108,13 +108,8 @@ walletDocumentation WalletBackendParams {..} = pure $ \_ ->
   where
     application :: WalletWebMode Application
     application = do
-        let app =
-                if isDebugMode walletRunMode then
-                    Servant.serve API.walletDevDocAPI LegacyServer.walletDevDocServer
-                else
-                    Servant.serve API.walletDocAPI LegacyServer.walletDocServer
+        let app = Servant.serve API.walletDocAPI LegacyServer.walletDocServer
         return $ withMiddleware walletRunMode app
-
     tls =
         if isDebugMode walletRunMode then Nothing else walletTLSParams
 
@@ -146,25 +141,19 @@ legacyWalletBackend pm WalletBackendParams {..} ntpStatus = pure $ \diffusion ->
     -- Gets the Wai `Application` to run.
     getApplication :: Diffusion WalletWebMode -> WalletWebMode Application
     getApplication diffusion = do
-      logInfo "Wallet Web API has STARTED!"
-      wsConn <- getWalletWebSockets
-      ctx <- V0.walletWebModeContext
-      let app = upgradeApplicationWS wsConn $
-            if isDebugMode walletRunMode then
-              Servant.serve API.walletDevAPI $ LegacyServer.walletDevServer
+        logInfo "Wallet Web API has STARTED!"
+        wsConn <- getWalletWebSockets
+        ctx <- V0.walletWebModeContext
+        return
+            $ withMiddleware walletRunMode
+            $ upgradeApplicationWS wsConn
+            $ Servant.serve API.walletAPI
+            $ LegacyServer.walletServer
                 (V0.convertHandler ctx)
                 pm
                 diffusion
                 ntpStatus
                 walletRunMode
-            else
-              Servant.serve API.walletAPI $ LegacyServer.walletServer
-                (V0.convertHandler ctx)
-                pm
-                diffusion
-                ntpStatus
-
-      return $ withMiddleware walletRunMode app
 
     exceptionHandler :: SomeException -> Response
     exceptionHandler se =
@@ -228,10 +217,7 @@ walletBackend protocolMagic (NewWalletBackendParams WalletBackendParams{..}) (pa
     getApplication active = do
       logInfo "New wallet API has STARTED!"
       return $ withMiddleware walletRunMode $
-        if isDebugMode walletRunMode then
-          Servant.serve API.walletDevAPI $ Server.walletDevServer active walletRunMode
-        else
-          Servant.serve API.walletAPI $ Server.walletServer active
+        Servant.serve API.walletAPI $ Server.walletServer active walletRunMode
 
     lower :: env -> ReaderT env IO a -> IO a
     lower env m = runReaderT m env
diff --git a/wallet-new/src/Cardano/Wallet/WalletLayer/Kernel.hs b/wallet-new/src/Cardano/Wallet/WalletLayer/Kernel.hs
index d0e742b6f98..a006e037f1c 100644
--- a/wallet-new/src/Cardano/Wallet/WalletLayer/Kernel.hs
+++ b/wallet-new/src/Cardano/Wallet/WalletLayer/Kernel.hs
@@ -97,7 +97,7 @@ bracketPassiveWallet logFunction keystore f =
     passiveWalletLayer wallet invoke =
         PassiveWalletLayer
             { _pwlCreateWallet   =
-                \(V1.NewWallet (V1 mnemonic) mbSpendingPassword v1AssuranceLevel v1WalletName operation) -> do
+                \(V1.NewWallet (V1.BackupPhrase mnemonic) mbSpendingPassword v1AssuranceLevel v1WalletName operation) -> do
                     liftIO $ limitExecutionTimeTo (30 :: Second) CreateWalletTimeLimitReached $ do
                         case operation of
                              V1.RestoreWallet -> error "Not implemented, see [CBR-243]."
diff --git a/wallet-new/src/Cardano/Wallet/WalletLayer/Legacy.hs b/wallet-new/src/Cardano/Wallet/WalletLayer/Legacy.hs
index 7a2934c7985..6e58b96cded 100644
--- a/wallet-new/src/Cardano/Wallet/WalletLayer/Legacy.hs
+++ b/wallet-new/src/Cardano/Wallet/WalletLayer/Legacy.hs
@@ -21,9 +21,9 @@ import           Cardano.Wallet.WalletLayer.Types (ActiveWalletLayer (..),
 import           Cardano.Wallet.API.V1.Migration (migrate)
 import           Cardano.Wallet.API.V1.Migration.Types ()
 import           Cardano.Wallet.API.V1.Types (Account, AccountIndex,
-                     AccountUpdate, Address, NewAccount (..), NewAddress,
-                     NewWallet (..), V1 (..), Wallet, WalletId,
-                     WalletOperation (..), WalletUpdate)
+                     AccountUpdate, Address, BackupPhrase (..),
+                     NewAccount (..), NewAddress, NewWallet (..), V1 (..),
+                     Wallet, WalletId, WalletOperation (..), WalletUpdate)
 import           Cardano.Wallet.Kernel.Diffusion (WalletDiffusion (..))
 
 import           Pos.Client.KeyStorage (MonadKeys)
@@ -123,9 +123,8 @@ pwlCreateWallet
     => NewWallet
     -> m (Either CreateWalletError Wallet)
 pwlCreateWallet NewWallet{..} = do
-
     let spendingPassword = fromMaybe mempty $ coerce newwalSpendingPassword
-    let backupPhrase     = CBackupPhrase $ coerce newwalBackupPhrase
+    let backupPhrase     = CBackupPhrase $ unBackupPhrase newwalBackupPhrase
 
     initMeta    <- CWalletMeta  <$> pure newwalName
                                 <*> migrate newwalAssuranceLevel
diff --git a/wallet-new/test/DevelopmentSpec.hs b/wallet-new/test/InternalAPISpec.hs
similarity index 90%
rename from wallet-new/test/DevelopmentSpec.hs
rename to wallet-new/test/InternalAPISpec.hs
index 89ab8b7e73e..789475f6aa5 100644
--- a/wallet-new/test/DevelopmentSpec.hs
+++ b/wallet-new/test/InternalAPISpec.hs
@@ -12,7 +12,7 @@
 {-# LANGUAGE UndecidableInstances  #-}
 
 -- Spec for testing `development` endpoints
-module DevelopmentSpec (spec) where
+module InternalAPISpec (spec) where
 
 import           Universum
 
@@ -27,8 +27,7 @@ import           Test.Hspec.QuickCheck (modifyMaxSuccess)
 import           Test.Pos.Configuration (withDefConfigurations)
 import           Test.Pos.Wallet.Web.Mode (walletPropertySpec)
 
-import           Cardano.Wallet.API.Development.LegacyHandlers
-                     (deleteSecretKeys)
+import           Cardano.Wallet.API.Internal.Handlers (resetWalletState)
 import           Cardano.Wallet.Server.CLI (RunMode (..))
 import           Data.Default (def)
 import           Servant
@@ -49,7 +48,7 @@ deleteAllSecretKeysSpec = do
         assertProperty (not $ null sKeys)
             "Something went wrong: Secret key has not been added."
 
-        _ <- lift $ deleteSecretKeys DebugMode
+        _ <- lift $ resetWalletState DebugMode
         sKeys' <- lift getSecretKeysPlain
         assertProperty (null sKeys')
             "Oooops, secret keys not have been deleted in debug mode"
@@ -59,7 +58,7 @@ deleteAllSecretKeysSpec = do
         sKeys <- lift getSecretKeysPlain
         assertProperty (not $ null sKeys)
             "Something went wrong: Secret key has not been added."
-        _ <- lift $ catch (deleteSecretKeys ProductionMode) (\(_ :: SomeException) -> pure NoContent)
+        _ <- lift $ catch (resetWalletState ProductionMode) (\(_ :: SomeException) -> pure NoContent)
         -- ^ Catch `ServantErr` throwing from `deleteSecretKeys` to not fail the test before end
         sKeys' <- lift getSecretKeysPlain
         assertProperty (not $ null sKeys')
diff --git a/wallet-new/test/MarshallingSpec.hs b/wallet-new/test/MarshallingSpec.hs
index 12ad689b894..a030acc4ab1 100644
--- a/wallet-new/test/MarshallingSpec.hs
+++ b/wallet-new/test/MarshallingSpec.hs
@@ -17,8 +17,6 @@ import           Test.QuickCheck
 import           Test.QuickCheck.Instances ()
 import qualified Test.QuickCheck.Property as Property
 
-import           Pos.Util.Mnemonic (Mnemonic)
-
 import qualified Pos.Core as Core
 import qualified Pos.Core.Update as Core
 
@@ -34,9 +32,10 @@ spec :: Spec
 spec = parallel $ describe "Marshalling & Unmarshalling" $ do
     parallel $ describe "Roundtrips" $ do
         -- Aeson roundrips
-        aesonRoundtripProp @(V1 (Mnemonic 12)) Proxy
         aesonRoundtripProp @Account Proxy
         aesonRoundtripProp @AssuranceLevel Proxy
+        aesonRoundtripProp @BackupPhrase Proxy
+        aesonRoundtripProp @Redemption Proxy
         aesonRoundtripProp @(V1 Core.SoftwareVersion) Proxy
         aesonRoundtripProp @NodeSettings Proxy
         aesonRoundtripProp @Payment Proxy
diff --git a/wallet-new/test/Spec.hs b/wallet-new/test/Spec.hs
index 9ce1f467b87..74d1afcd32f 100644
--- a/wallet-new/test/Spec.hs
+++ b/wallet-new/test/Spec.hs
@@ -13,7 +13,7 @@ import           Test.QuickCheck
 import           Cardano.Wallet.API.V1.Types
 
 import qualified APISpec as API
-import qualified DevelopmentSpec as Dev
+import qualified InternalAPISpec as InternalAPI
 import qualified MarshallingSpec as Marshalling
 import qualified RequestSpec as ReqSpec
 import qualified SwaggerSpec as Swagger
@@ -22,7 +22,7 @@ import qualified WalletHandlersSpec as WalletHandlers
 -- | Tests whether or not some instances (JSON, Bi, etc) roundtrips.
 main :: IO ()
 main = hspec $ do
-    Dev.spec
+    InternalAPI.spec
     Marshalling.spec
     API.spec
     Swagger.spec
diff --git a/wallet-new/test/unit/Test/Spec/CreateWallet.hs b/wallet-new/test/unit/Test/Spec/CreateWallet.hs
index 474679af549..5ba11109735 100644
--- a/wallet-new/test/unit/Test/Spec/CreateWallet.hs
+++ b/wallet-new/test/unit/Test/Spec/CreateWallet.hs
@@ -55,7 +55,7 @@ genNewWalletRq = do
     walletName       <- pick arbitrary
     spendingPassword <- pick (frequency [(20, pure Nothing), (80, Just <$> arbitrary)])
     mnemonic <- BIP39.entropyToMnemonic <$> liftIO (BIP39.genEntropy @(BIP39.EntropySize 12))
-    return $ V1.NewWallet (V1.V1 mnemonic)
+    return $ V1.NewWallet (V1.BackupPhrase mnemonic)
                           spendingPassword
                           assuranceLevel
                           walletName
@@ -111,7 +111,7 @@ spec = describe "CreateWallet" $ do
                                                     V1.NormalAssurance -> AssuranceLevelNormal
                                                     V1.StrictAssurance -> AssuranceLevelStrict
                         res <- Kernel.createHdWallet wallet
-                                                     (coerce newwalBackupPhrase)
+                                                     (V1.unBackupPhrase newwalBackupPhrase)
                                                      (maybe emptyPassphrase coerce newwalSpendingPassword)
                                                      hdAssuranceLevel
                                                      (WalletName newwalName)
diff --git a/wallet/Makefile b/wallet/Makefile
new file mode 100644
index 00000000000..f117806d839
--- /dev/null
+++ b/wallet/Makefile
@@ -0,0 +1,13 @@
+help: ## Print documentation
+	@grep -E '^[a-zA-Z_-]+:.*?## .*$$' $(MAKEFILE_LIST) | sort | awk 'BEGIN {FS = ":.*?## "}; {printf "\033[36m%-30s\033[0m %s\n", $$1, $$2}'
+
+ghcid: ## Run ghcid with the wallet-new project
+	ghcid \
+	    --command "stack ghci cardano-sl-wallet --ghci-options=-fno-code"
+
+ghcid-test: ## Have ghcid run the test suite for the wallet-new-specs on successful recompile
+	ghcid \
+	    --command "stack ghci cardano-sl-wallet:lib cardano-sl-wallet:test:cardano-wallet-test --ghci-options=-fobject-code" \
+	    --test "main"
+
+.PHONY: ghcid ghcid-test help