diff --git a/agorad.go b/agorad.go
new file mode 100644
index 0000000..164ae7a
--- /dev/null
+++ b/agorad.go
@@ -0,0 +1,214 @@
+package client
+
+import (
+	"context"
+	"errors"
+	"fmt"
+	"io"
+	"net"
+	"net/http"
+	"os"
+	"path/filepath"
+	"strings"
+	"sync"
+
+	proxy "github.com/grpc-ecosystem/grpc-gateway/runtime"
+	"github.com/lightninglabs/agora/client/auctioneer"
+	"github.com/lightninglabs/agora/client/clmrpc"
+	"github.com/lightninglabs/agora/client/trader"
+	"github.com/lightninglabs/loop/lndclient"
+	"github.com/lightningnetwork/lnd/build"
+	"google.golang.org/grpc"
+)
+
+// Start runs agorad in daemon mode. It will listen for grpc connections,
+// execute commands and pass back auction status information.
+func Start(config *Config) error {
+	// Show the version and exit if the version flag was specified.
+	appName := filepath.Base(os.Args[0])
+	appName = strings.TrimSuffix(appName, filepath.Ext(appName))
+	if config.ShowVersion {
+		fmt.Println(appName, "version", Version())
+		os.Exit(0)
+	}
+
+	// Special show command to list supported subsystems and exit.
+	if config.DebugLevel == "show" {
+		fmt.Printf("Supported subsystems: %v\n",
+			logWriter.SupportedSubsystems())
+		os.Exit(0)
+	}
+
+	// Append the network type to the log directory so it is
+	// "namespaced" per network in the same fashion as the data directory.
+	config.LogDir = filepath.Join(config.LogDir, config.Network)
+
+	// Initialize logging at the default logging level.
+	err := logWriter.InitLogRotator(
+		filepath.Join(config.LogDir, DefaultLogFilename),
+		config.MaxLogFileSize, config.MaxLogFiles,
+	)
+	if err != nil {
+		return err
+	}
+	err = build.ParseAndSetDebugLevels(config.DebugLevel, logWriter)
+	if err != nil {
+		return err
+	}
+
+	// Print the version before executing either primary directive.
+	log.Infof("Version: %v", Version())
+
+	lnd, err := getLnd(config.Network, config.Lnd)
+	if err != nil {
+		return err
+	}
+	defer lnd.Close()
+
+	// If no auction server is specified, use the default addresses for
+	// mainnet and testnet.
+	if config.AuctionServer == "" && len(config.AuctioneerDialOpts) == 0 {
+		switch config.Network {
+		case "mainnet":
+			config.AuctionServer = MainnetServer
+		case "testnet":
+			config.AuctionServer = TestnetServer
+		default:
+			return errors.New("no auction server address specified")
+		}
+	}
+
+	log.Infof("Auction server address: %v", config.AuctionServer)
+
+	// Create an instance of the auctioneer client library.
+	auctioneerClient, cleanup, err := auctioneer.NewClient(
+		config.AuctionServer, config.Insecure, config.TLSPathAuctSrv,
+		lnd.WalletKit, config.AuctioneerDialOpts...,
+	)
+	if err != nil {
+		return err
+	}
+	defer cleanup()
+
+	// Instantiate the agorad gRPC server.
+	networkDir := filepath.Join(config.BaseDir, config.Network)
+	traderServer, err := trader.NewServer(
+		&lnd.LndServices, auctioneerClient, networkDir,
+	)
+	if err != nil {
+		return err
+	}
+
+	serverOpts := []grpc.ServerOption{}
+	grpcServer := grpc.NewServer(serverOpts...)
+	clmrpc.RegisterChannelAuctioneerClientServer(grpcServer, traderServer)
+
+	// Next, start the gRPC server listening for HTTP/2 connections.
+	// If the provided grpcListener is not nil, it means agorad is being
+	// used as a library and the listener might not be a real network
+	// connection (but maybe a UNIX socket or bufconn). So we don't spin up
+	// a REST listener in that case.
+	log.Infof("Starting gRPC listener")
+	var (
+		wg           sync.WaitGroup
+		grpcListener = config.RPCListener
+		restListener net.Listener
+		restProxy    *http.Server
+	)
+	if grpcListener == nil {
+		grpcListener, err = net.Listen("tcp", config.RPCListen)
+		if err != nil {
+			return fmt.Errorf("RPC server unable to listen on %s",
+				config.RPCListen)
+
+		}
+		defer closeOrLog(grpcListener)
+
+		// We'll also create and start an accompanying proxy to serve
+		// clients through REST.
+		ctx, cancel := context.WithCancel(context.Background())
+		defer cancel()
+		mux := proxy.NewServeMux()
+		proxyOpts := []grpc.DialOption{grpc.WithInsecure()}
+		err = clmrpc.RegisterChannelAuctioneerClientHandlerFromEndpoint(
+			ctx, mux, config.RPCListen, proxyOpts,
+		)
+		if err != nil {
+			return err
+		}
+
+		log.Infof("Starting REST proxy listener")
+		restListener, err = net.Listen("tcp", config.RESTListen)
+		if err != nil {
+			return fmt.Errorf("REST proxy unable to listen on %s",
+				config.RESTListen)
+		}
+		defer closeOrLog(restListener)
+		restProxy = &http.Server{Handler: mux}
+		wg.Add(1)
+		go func() {
+			defer wg.Done()
+
+			err := restProxy.Serve(restListener)
+			if err != nil && err != http.ErrServerClosed {
+				log.Errorf("could not start rest listener: %v",
+					err)
+			}
+		}()
+	}
+
+	// Start the trader server itself.
+	err = traderServer.Start()
+	if err != nil {
+		return err
+	}
+
+	// Start the grpc server.
+	wg.Add(1)
+	go func() {
+		defer wg.Done()
+
+		log.Infof("RPC server listening on %s", grpcListener.Addr())
+		if restListener != nil {
+			log.Infof("REST proxy listening on %s",
+				restListener.Addr())
+		}
+
+		err = grpcServer.Serve(grpcListener)
+		if err != nil {
+			log.Error(err)
+		}
+	}()
+
+	// Run until the user terminates agorad.
+	<-config.ShutdownChannel
+	log.Info("Received shutdown signal, stopping server")
+	grpcServer.GracefulStop()
+	if restProxy != nil {
+		err := restProxy.Shutdown(context.Background())
+		if err != nil {
+			log.Errorf("error shutting down REST proxy: %v", err)
+		}
+	}
+	err = traderServer.Stop()
+	if err != nil {
+		log.Errorf("error shutting down server: %v", err)
+	}
+
+	wg.Wait()
+	return nil
+}
+
+// getLnd returns an instance of the lnd services proxy.
+func getLnd(network string, cfg *LndConfig) (*lndclient.GrpcLndServices, error) {
+	return lndclient.NewLndServices(
+		cfg.Host, network, cfg.MacaroonDir, cfg.TLSPath,
+	)
+}
+
+func closeOrLog(c io.Closer) {
+	err := c.Close()
+	if err != nil {
+		log.Errorf("could not close: %v", err)
+	}
+}
diff --git a/auctioneer/client.go b/auctioneer/client.go
index 07d617e..2f34346 100644
--- a/auctioneer/client.go
+++ b/auctioneer/client.go
@@ -22,10 +22,11 @@ type Client struct {
 
 // NewClient returns a new instance to initiate auctions with.
 func NewClient(serverAddress string, insecure bool, tlsPathServer string,
-	wallet lndclient.WalletKitClient) (*Client, func(), error) {
+	wallet lndclient.WalletKitClient, dialOpts ...grpc.DialOption) (
+	*Client, func(), error) {
 
 	serverConn, err := getAuctionServerConn(
-		serverAddress, insecure, tlsPathServer,
+		serverAddress, insecure, tlsPathServer, dialOpts...,
 	)
 	if err != nil {
 		return nil, nil, err
@@ -42,11 +43,11 @@ func NewClient(serverAddress string, insecure bool, tlsPathServer string,
 }
 
 // getAuctionServerConn returns a connection to the auction server.
-func getAuctionServerConn(address string, insecure bool, tlsPath string) (
-	*grpc.ClientConn, error) {
+func getAuctionServerConn(address string, insecure bool, tlsPath string,
+	dialOpts ...grpc.DialOption) (*grpc.ClientConn, error) {
 
-	// Create a dial options array.
-	opts := []grpc.DialOption{}
+	// Create a copy of the dial options array.
+	opts := dialOpts
 
 	// There are three options to connect to a auction server, either
 	// insecure, using a self-signed certificate or with a certificate
diff --git a/cmd/agorad/daemon.go b/cmd/agorad/daemon.go
deleted file mode 100644
index 1439b3f..0000000
--- a/cmd/agorad/daemon.go
+++ /dev/null
@@ -1,148 +0,0 @@
-package main
-
-import (
-	"context"
-	"errors"
-	"fmt"
-	"io"
-	"net"
-	"net/http"
-	"sync"
-
-	proxy "github.com/grpc-ecosystem/grpc-gateway/runtime"
-	"github.com/lightninglabs/agora/client/auctioneer"
-	"github.com/lightninglabs/agora/client/clmrpc"
-	"github.com/lightninglabs/agora/client/trader"
-	"github.com/lightningnetwork/lnd/signal"
-	"google.golang.org/grpc"
-)
-
-// daemon runs agorad in daemon mode. It will listen for grpc connections,
-// execute commands and pass back auction status information.
-func daemon(config *config) error {
-	lnd, err := getLnd(config.Network, config.Lnd)
-	if err != nil {
-		return err
-	}
-	defer lnd.Close()
-
-	// If no auction server is specified, use the default addresses for
-	// mainnet and testnet.
-	if config.AuctionServer == "" {
-		switch config.Network {
-		case "mainnet":
-			config.AuctionServer = mainnetServer
-		case "testnet":
-			config.AuctionServer = testnetServer
-		default:
-			return errors.New("no auction server address specified")
-		}
-	}
-
-	log.Infof("Auction server address: %v", config.AuctionServer)
-
-	// Create an instance of the auctioneer client library.
-	auctioneerClient, cleanup, err := auctioneer.NewClient(
-		config.AuctionServer, config.Insecure, config.TLSPathAuctSrv,
-		lnd.WalletKit,
-	)
-	if err != nil {
-		return err
-	}
-	defer cleanup()
-
-	// Instantiate the agorad gRPC server.
-	traderServer, err := trader.NewServer(
-		&lnd.LndServices, auctioneerClient, config.serverDir,
-	)
-	if err != nil {
-		return err
-	}
-
-	serverOpts := []grpc.ServerOption{}
-	grpcServer := grpc.NewServer(serverOpts...)
-	clmrpc.RegisterChannelAuctioneerClientServer(grpcServer, traderServer)
-
-	// Next, start the gRPC server listening for HTTP/2 connections.
-	log.Infof("Starting gRPC listener")
-	grpcListener, err := net.Listen("tcp", config.RPCListen)
-	if err != nil {
-		return fmt.Errorf("RPC server unable to listen on %s",
-			config.RPCListen)
-
-	}
-	defer closeOrLog(grpcListener)
-
-	// We'll also create and start an accompanying proxy to serve clients
-	// through REST.
-	ctx, cancel := context.WithCancel(context.Background())
-	defer cancel()
-	mux := proxy.NewServeMux()
-	proxyOpts := []grpc.DialOption{grpc.WithInsecure()}
-	err = clmrpc.RegisterChannelAuctioneerClientHandlerFromEndpoint(
-		ctx, mux, config.RPCListen, proxyOpts,
-	)
-	if err != nil {
-		return err
-	}
-
-	log.Infof("Starting REST proxy listener")
-	restListener, err := net.Listen("tcp", config.RESTListen)
-	if err != nil {
-		return fmt.Errorf("REST proxy unable to listen on %s",
-			config.RESTListen)
-	}
-	defer closeOrLog(restListener)
-	restProxy := &http.Server{Handler: mux}
-	go func() {
-		err := restProxy.Serve(restListener)
-		if err != nil && err != http.ErrServerClosed {
-			log.Errorf("could not start rest listener: %v", err)
-		}
-	}()
-
-	// Start the trader server itself.
-	err = traderServer.Start()
-	if err != nil {
-		return err
-	}
-
-	// Start the grpc server.
-	var wg sync.WaitGroup
-	wg.Add(1)
-	go func() {
-		defer wg.Done()
-
-		log.Infof("RPC server listening on %s", grpcListener.Addr())
-		log.Infof("REST proxy listening on %s", restListener.Addr())
-
-		err = grpcServer.Serve(grpcListener)
-		if err != nil {
-			log.Error(err)
-		}
-	}()
-
-	// Run until the user terminates agorad.
-	signal.Intercept()
-	<-signal.ShutdownChannel()
-	log.Info("Received shutdown signal, stopping server")
-	grpcServer.GracefulStop()
-	err = restProxy.Shutdown(context.Background())
-	if err != nil {
-		log.Errorf("error shutting down REST proxy: %v", err)
-	}
-	err = traderServer.Stop()
-	if err != nil {
-		log.Errorf("error shutting down server: %v", err)
-	}
-
-	wg.Wait()
-	return nil
-}
-
-func closeOrLog(c io.Closer) {
-	err := c.Close()
-	if err != nil {
-		log.Errorf("could not close: %v", err)
-	}
-}
diff --git a/cmd/agorad/main.go b/cmd/agorad/main.go
index c39482d..8a57ec2 100644
--- a/cmd/agorad/main.go
+++ b/cmd/agorad/main.go
@@ -4,11 +4,10 @@ import (
 	"fmt"
 	"os"
 	"path/filepath"
-	"strings"
 
 	"github.com/jessevdk/go-flags"
 	"github.com/lightninglabs/agora/client"
-	"github.com/lightningnetwork/lnd/build"
+	"github.com/lightningnetwork/lnd/signal"
 )
 
 var (
@@ -23,7 +22,7 @@ func main() {
 }
 
 func start() error {
-	config := defaultConfig
+	config := client.DefaultConfig
 
 	// Parse command line flags.
 	parser := flags.NewParser(&config, flags.Default)
@@ -38,12 +37,12 @@ func start() error {
 	}
 
 	// Parse ini file.
-	config.serverDir = filepath.Join(agoraDirBase, config.Network)
-	if err := os.MkdirAll(config.serverDir, os.ModePerm); err != nil {
+	networkDir := filepath.Join(config.BaseDir, config.Network)
+	if err := os.MkdirAll(networkDir, os.ModePerm); err != nil {
 		return err
 	}
 
-	configFile := filepath.Join(config.serverDir, defaultConfigFilename)
+	configFile := filepath.Join(networkDir, defaultConfigFilename)
 	if err := flags.IniParse(configFile, &config); err != nil {
 		// If it's a parsing related error, then we'll return
 		// immediately, otherwise we can proceed as possibly the config
@@ -60,44 +59,11 @@ func start() error {
 		return err
 	}
 
-	// Show the version and exit if the version flag was specified.
-	appName := filepath.Base(os.Args[0])
-	appName = strings.TrimSuffix(appName, filepath.Ext(appName))
-	if config.ShowVersion {
-		fmt.Println(appName, "version", client.Version())
-		os.Exit(0)
-	}
-
-	// Special show command to list supported subsystems and exit.
-	if config.DebugLevel == "show" {
-		fmt.Printf("Supported subsystems: %v\n",
-			logWriter.SupportedSubsystems())
-		os.Exit(0)
-	}
-
-	// Append the network type to the log directory so it is
-	// "namespaced" per network in the same fashion as the data directory.
-	config.LogDir = filepath.Join(config.LogDir, config.Network)
-
-	// Initialize logging at the default logging level.
-	err = logWriter.InitLogRotator(
-		filepath.Join(config.LogDir, defaultLogFilename),
-		config.MaxLogFileSize, config.MaxLogFiles,
-	)
-	if err != nil {
-		return err
-	}
-	err = build.ParseAndSetDebugLevels(config.DebugLevel, logWriter)
-	if err != nil {
-		return err
-	}
-
-	// Print the version before executing either primary directive.
-	log.Infof("Version: %v", client.Version())
-
 	// Execute command.
 	if parser.Active == nil {
-		return daemon(&config)
+		signal.Intercept()
+		config.ShutdownChannel = signal.ShutdownChannel()
+		return client.Start(&config)
 	}
 
 	return fmt.Errorf("unimplemented command %v", parser.Active.Name)
diff --git a/cmd/agorad/utils.go b/cmd/agorad/utils.go
deleted file mode 100644
index 8917a5b..0000000
--- a/cmd/agorad/utils.go
+++ /dev/null
@@ -1,12 +0,0 @@
-package main
-
-import (
-	"github.com/lightninglabs/loop/lndclient"
-)
-
-// getLnd returns an instance of the lnd services proxy.
-func getLnd(network string, cfg *lndConfig) (*lndclient.GrpcLndServices, error) {
-	return lndclient.NewLndServices(
-		cfg.Host, network, cfg.MacaroonDir, cfg.TLSPath,
-	)
-}
diff --git a/cmd/agorad/config.go b/config.go
similarity index 56%
rename from cmd/agorad/config.go
rename to config.go
index 61778bc..95093a7 100644
--- a/cmd/agorad/config.go
+++ b/config.go
@@ -1,30 +1,39 @@
-package main
+package client
 
 import (
+	"net"
 	"path/filepath"
 
 	"github.com/btcsuite/btcutil"
+	"google.golang.org/grpc"
 )
 
 var (
-	agoraDirBase = btcutil.AppDataDir("agora", false)
+	// DefaultBaseDir is the default root data directory where agora will
+	// store all its data. On UNIX like systems this will resolve to
+	// ~/.agora. Below this directory the logs and network directory will be
+	// created.
+	DefaultBaseDir = btcutil.AppDataDir("agora", false)
 
-	defaultLogLevel    = "info"
-	defaultLogDirname  = "logs"
-	defaultLogFilename = "agorad.log"
-	defaultLogDir      = filepath.Join(agoraDirBase, defaultLogDirname)
+	// DefaultLogFilename is the default name that is given to the agora log
+	// file.
+	DefaultLogFilename = "agorad.log"
+
+	defaultLogLevel   = "info"
+	defaultLogDirname = "logs"
+	defaultLogDir     = filepath.Join(DefaultBaseDir, defaultLogDirname)
 
 	defaultMaxLogFiles    = 3
 	defaultMaxLogFileSize = 10
 )
 
-type lndConfig struct {
+type LndConfig struct {
 	Host        string `long:"host" description:"lnd instance rpc address"`
 	MacaroonDir string `long:"macaroondir" description:"Path to the directory containing all the required lnd macaroons"`
 	TLSPath     string `long:"tlspath" description:"Path to lnd tls certificate"`
 }
 
-type config struct {
+type Config struct {
 	ShowVersion    bool   `short:"V" long:"version" description:"Display version information and exit"`
 	Insecure       bool   `long:"insecure" description:"disable tls"`
 	Network        string `long:"network" description:"network to run on" choice:"regtest" choice:"testnet" choice:"mainnet" choice:"simnet"`
@@ -32,6 +41,7 @@ type config struct {
 	TLSPathAuctSrv string `long:"tlspathauctserver" description:"Path to auction server tls certificate"`
 	RPCListen      string `long:"rpclisten" description:"Address to listen on for gRPC clients"`
 	RESTListen     string `long:"restlisten" description:"Address to listen on for REST clients"`
+	BaseDir        string `long:"basedir" description:"The base directory where agora stores all its data"`
 
 	LogDir         string `long:"logdir" description:"Directory to log output."`
 	MaxLogFiles    int    `long:"maxlogfiles" description:"Maximum logfiles to keep (0 for no rotation)"`
@@ -39,26 +49,39 @@ type config struct {
 
 	DebugLevel string `short:"d" long:"debuglevel" description:"Logging level for all subsystems {trace, debug, info, warn, error, critical} -- You may also specify <subsystem>=<level>,<subsystem2>=<level>,... to set the log level for individual subsystems -- Use show to list available subsystems"`
 
-	Lnd *lndConfig `group:"lnd" namespace:"lnd"`
+	Lnd *LndConfig `group:"lnd" namespace:"lnd"`
 
-	serverDir string
+	// RPCListener is a network listener that can be set if agorad should be
+	// used as a library and listen on the given listener instead of what is
+	// configured in the --rpclisten parameter. Setting this will also
+	// disable REST.
+	RPCListener net.Listener
+
+	// AuctioneerDialOpts is a list of dial options that should be used when
+	// dialing the auctioneer server.
+	AuctioneerDialOpts []grpc.DialOption
+
+	// ShutdownChannel is the channel that must be provided where agorad
+	// listens for a shutdown signal.
+	ShutdownChannel <-chan struct{}
 }
 
 const (
-	mainnetServer = "auction.lightning.today:12009"
-	testnetServer = "test.auction.lightning.today:12009"
+	MainnetServer = "auction.lightning.today:12009"
+	TestnetServer = "test.auction.lightning.today:12009"
 )
 
-var defaultConfig = config{
+var DefaultConfig = Config{
 	Network:        "mainnet",
 	RPCListen:      "localhost:12010",
 	RESTListen:     "localhost:8281",
 	Insecure:       false,
+	BaseDir:        DefaultBaseDir,
 	LogDir:         defaultLogDir,
 	MaxLogFiles:    defaultMaxLogFiles,
 	MaxLogFileSize: defaultMaxLogFileSize,
 	DebugLevel:     defaultLogLevel,
-	Lnd: &lndConfig{
+	Lnd: &LndConfig{
 		Host: "localhost:10009",
 	},
 }
diff --git a/cmd/agorad/log.go b/log.go
similarity index 99%
rename from cmd/agorad/log.go
rename to log.go
index a19fafa..5000637 100644
--- a/cmd/agorad/log.go
+++ b/log.go
@@ -1,6 +1,6 @@
 // As this file is very similar in every package, ignore the linter here.
 // nolint:dupl
-package main
+package client
 
 import (
 	"github.com/btcsuite/btclog"