diff --git a/aezeed/cipherseed.go b/aezeed/cipherseed.go
index a55bb5d3e..4e05b25e0 100644
--- a/aezeed/cipherseed.go
+++ b/aezeed/cipherseed.go
@@ -62,7 +62,7 @@ const (
 	// be seen as the size of the equivalent MAC.
 	CipherTextExpansion = 4
 
-	// EntropySize is the number of bytes of entropy we'll use the generate
+	// EntropySize is the number of bytes of entropy we'll use to generate
 	// the seed.
 	EntropySize = 16
 
@@ -70,15 +70,15 @@ const (
 	// will result in.
 	NumMnemonicWords = 24
 
-	// saltSize is the size of the salt we'll generate to use with scrypt
+	// SaltSize is the size of the salt we'll generate to use with scrypt
 	// to generate a key for use within aez from the user's passphrase. The
 	// role of the salt is to make the creation of rainbow tables
 	// infeasible.
-	saltSize = 5
+	SaltSize = 5
 
 	// adSize is the size of the encoded associated data that will be
 	// passed into aez when enciphering and deciphering the seed. The AD
-	// itself (associated data) is just the CipherSeedVersion and salt.
+	// itself (associated data) is just the cipher seed version and salt.
 	adSize = 6
 
 	// checkSumSize is the size of the checksum applied to the final
@@ -93,9 +93,9 @@ const (
 	// We encode our mnemonic using 24 words, so 264 bits (33 bytes).
 	BitsPerWord = 11
 
-	// saltOffset is the index within an enciphered cipherseed that marks
+	// saltOffset is the index within an enciphered cipher seed that marks
 	// the start of the salt.
-	saltOffset = EncipheredCipherSeedSize - checkSumSize - saltSize
+	saltOffset = EncipheredCipherSeedSize - checkSumSize - SaltSize
 
 	// checkSumSize is the index within an enciphered cipher seed that
 	// marks the start of the checksum.
@@ -103,8 +103,8 @@ const (
 )
 
 var (
-	// Below at the default scrypt parameters that are tied to
-	// CipherSeedVersion zero.
+	// Below at the default scrypt parameters that are tied to cipher seed
+	// version zero.
 	scryptN = 32768
 	scryptR = 8
 	scryptP = 1
@@ -128,8 +128,35 @@ var (
 	BitcoinGenesisDate = time.Unix(1231006505, 0)
 )
 
+// SeedOptions is a type that holds options that configure the generation of a
+// new cipher seed.
+type SeedOptions struct {
+	// randomnessSource is the source of randomness that is used to generate
+	// the salt that is used for encrypting the seed.
+	randomnessSource io.Reader
+}
+
+// DefaultOptions returns the default seed options.
+func DefaultOptions() *SeedOptions {
+	return &SeedOptions{
+		randomnessSource: rand.Reader,
+	}
+}
+
+// SeedOptionModifier is a function signature for modifying the default
+// SeedOptions.
+type SeedOptionModifier func(*SeedOptions)
+
+// WithRandomnessSource returns an option modifier that replaces the default
+// randomness source with the given reader.
+func WithRandomnessSource(src io.Reader) SeedOptionModifier {
+	return func(opts *SeedOptions) {
+		opts.randomnessSource = src
+	}
+}
+
 // CipherSeed is a fully decoded instance of the aezeed scheme. At a high
-// level, the encoded cipherseed is the enciphering of: a version byte, a set
+// level, the encoded cipher seed is the enciphering of: a version byte, a set
 // of bytes for a timestamp, the entropy which will be used to directly
 // construct the HD seed, and finally a checksum over the rest. This scheme was
 // created as the widely used schemes in the space lack two critical traits: a
@@ -151,7 +178,7 @@ var (
 // users can encrypt the raw "plaintext" seed under distinct passwords to
 // produce unique mnemonic phrases.
 type CipherSeed struct {
-	// InternalVersion is the version of the plaintext cipherseed. This is
+	// InternalVersion is the version of the plaintext cipher seed. This is
 	// to be used by wallets to determine if the seed version is compatible
 	// with the derivation schemes they know.
 	InternalVersion uint8
@@ -169,22 +196,27 @@ type CipherSeed struct {
 
 	// salt is the salt that was used to generate the key from the user's
 	// specified passphrase.
-	salt [saltSize]byte
+	salt [SaltSize]byte
 }
 
 // New generates a new CipherSeed instance from an optional source of entropy.
 // If the entropy isn't provided, then a set of random bytes will be used in
-// place. The final argument should be the time at which the seed was created.
+// place. The final fixed argument should be the time at which the seed was
+// created, followed by optional seed option modifiers.
 func New(internalVersion uint8, entropy *[EntropySize]byte,
-	now time.Time) (*CipherSeed, error) {
+	now time.Time, modifiers ...SeedOptionModifier) (*CipherSeed, error) {
 
-	// TODO(roasbeef): pass randomness source? to make fully determinsitc?
+	opts := DefaultOptions()
+	for _, modifier := range modifiers {
+		modifier(opts)
+	}
 
 	// If a set of entropy wasn't provided, then we'll read a set of bytes
-	// from the CSPRNG of our operating platform.
+	// from the randomness source provided (which by default is the system's
+	// CSPRNG).
 	var seed [EntropySize]byte
 	if entropy == nil {
-		if _, err := rand.Read(seed[:]); err != nil {
+		if _, err := opts.randomnessSource.Read(seed[:]); err != nil {
 			return nil, err
 		}
 	} else {
@@ -205,7 +237,7 @@ func New(internalVersion uint8, entropy *[EntropySize]byte,
 
 	// Next, we'll read a random salt that will be used with scrypt to
 	// eventually derive our key.
-	if _, err := rand.Read(c.salt[:]); err != nil {
+	if _, err := opts.randomnessSource.Read(c.salt[:]); err != nil {
 		return nil, err
 	}
 
@@ -252,9 +284,9 @@ func (c *CipherSeed) decode(r io.Reader) error {
 
 // encodeAD returns the fully encoded associated data for use when performing
 // our current enciphering operation. The AD is: version || salt.
-func encodeAD(version uint8, salt [saltSize]byte) [adSize]byte {
+func encodeAD(version uint8, salt [SaltSize]byte) [adSize]byte {
 	var ad [adSize]byte
-	ad[0] = byte(version)
+	ad[0] = version
 	copy(ad[1:], salt[:])
 
 	return ad
@@ -272,11 +304,13 @@ func extractAD(encipheredSeed [EncipheredCipherSeedSize]byte) [adSize]byte {
 	return ad
 }
 
-// encipher takes a fully populated cipherseed instance, and enciphers the
+// encipher takes a fully populated cipher seed instance, and enciphers the
 // encoded seed, then appends a randomly generated seed used to stretch the
 // passphrase out into an appropriate key, then computes a checksum over the
 // preceding.
-func (c *CipherSeed) encipher(pass []byte) ([EncipheredCipherSeedSize]byte, error) {
+func (c *CipherSeed) encipher(pass []byte) ([EncipheredCipherSeedSize]byte,
+	error) {
+
 	var cipherSeedBytes [EncipheredCipherSeedSize]byte
 
 	// If the passphrase wasn't provided, then we'll use the string
@@ -295,7 +329,7 @@ func (c *CipherSeed) encipher(pass []byte) ([EncipheredCipherSeedSize]byte, erro
 		return cipherSeedBytes, err
 	}
 
-	// Next, we'll encode the serialized plaintext cipherseed into a buffer
+	// Next, we'll encode the serialized plaintext cipher seed into a buffer
 	// that we'll use for encryption.
 	var seedBytes bytes.Buffer
 	if err := c.encode(&seedBytes); err != nil {
@@ -316,7 +350,7 @@ func (c *CipherSeed) encipher(pass []byte) ([EncipheredCipherSeedSize]byte, erro
 
 	// Finally, we'll pack the {version || ciphertext || salt || checksum}
 	// seed into a byte slice for encoding as a mnemonic.
-	cipherSeedBytes[0] = byte(CipherSeedVersion)
+	cipherSeedBytes[0] = CipherSeedVersion
 	copy(cipherSeedBytes[1:saltOffset], cipherText)
 	copy(cipherSeedBytes[saltOffset:], c.salt[:])
 
@@ -335,7 +369,9 @@ func (c *CipherSeed) encipher(pass []byte) ([EncipheredCipherSeedSize]byte, erro
 
 // cipherTextToMnemonic converts the aez ciphertext appended with the salt to a
 // 24-word mnemonic pass phrase.
-func cipherTextToMnemonic(cipherText [EncipheredCipherSeedSize]byte) (Mnemonic, error) {
+func cipherTextToMnemonic(cipherText [EncipheredCipherSeedSize]byte) (Mnemonic,
+	error) {
+
 	var words [NumMnemonicWords]string
 
 	// First, we'll convert the ciphertext itself into a bitstream for easy
@@ -356,7 +392,7 @@ func cipherTextToMnemonic(cipherText [EncipheredCipherSeedSize]byte) (Mnemonic,
 	return words, nil
 }
 
-// ToMnemonic maps the final enciphered cipher seed to a human readable 24-word
+// ToMnemonic maps the final enciphered cipher seed to a human-readable 24-word
 // mnemonic phrase. The password is optional, as if it isn't specified aezeed
 // will be used in its place.
 func (c *CipherSeed) ToMnemonic(pass []byte) (Mnemonic, error) {
@@ -374,7 +410,9 @@ func (c *CipherSeed) ToMnemonic(pass []byte) (Mnemonic, error) {
 
 // Encipher maps the cipher seed to an aez ciphertext using an optional
 // passphrase.
-func (c *CipherSeed) Encipher(pass []byte) ([EncipheredCipherSeedSize]byte, error) {
+func (c *CipherSeed) Encipher(pass []byte) ([EncipheredCipherSeedSize]byte,
+	error) {
+
 	return c.encipher(pass)
 }
 
@@ -385,7 +423,7 @@ func (c *CipherSeed) BirthdayTime() time.Time {
 	return BitcoinGenesisDate.Add(offset)
 }
 
-// Mnemonic is a 24-word passphrase as of CipherSeedVersion zero. This
+// Mnemonic is a 24-word passphrase as of cipher seed version zero. This
 // passphrase encodes an encrypted seed triple (version, birthday, entropy).
 // Additionally, we also encode the salt used with scrypt to derive the key
 // that the cipher text is encrypted with, and the version which tells us how
@@ -426,14 +464,16 @@ func mnemonicToCipherText(mnemonic *Mnemonic) [EncipheredCipherSeedSize]byte {
 func (m *Mnemonic) ToCipherSeed(pass []byte) (*CipherSeed, error) {
 	// First, we'll attempt to decipher the mnemonic by mapping back into
 	// our byte slice and applying our deciphering scheme.
-	plainSeed, err := m.Decipher(pass)
+	plainSeed, salt, err := m.Decipher(pass)
 	if err != nil {
 		return nil, err
 	}
 
 	// If decryption was successful, then we'll decode into a fresh
 	// CipherSeed struct.
-	var c CipherSeed
+	c := CipherSeed{
+		salt: salt,
+	}
 	if err := c.decode(bytes.NewReader(plainSeed[:])); err != nil {
 		return nil, err
 	}
@@ -445,36 +485,41 @@ func (m *Mnemonic) ToCipherSeed(pass []byte) (*CipherSeed, error) {
 // using the passed passphrase. This function is the opposite of
 // the encipher method.
 func decipherCipherSeed(cipherSeedBytes [EncipheredCipherSeedSize]byte,
-	pass []byte) ([DecipheredCipherSeedSize]byte, error) {
+	pass []byte) ([DecipheredCipherSeedSize]byte, [SaltSize]byte, error) {
 
-	var plainSeed [DecipheredCipherSeedSize]byte
+	var (
+		plainSeed [DecipheredCipherSeedSize]byte
+		salt      [SaltSize]byte
+	)
 
 	// Before we do anything, we'll ensure that the version is one that we
 	// understand. Otherwise, we won't be able to decrypt, or even parse
 	// the cipher seed.
-	if uint8(cipherSeedBytes[0]) != CipherSeedVersion {
-		return plainSeed, ErrIncorrectVersion
+	if cipherSeedBytes[0] != CipherSeedVersion {
+		return plainSeed, salt, ErrIncorrectVersion
 	}
 
 	// Next, we'll slice off the salt from the pass cipher seed, then
 	// snip off the end of the cipher seed, ignoring the version, and
 	// finally the checksum.
-	salt := cipherSeedBytes[saltOffset : saltOffset+saltSize]
+	copy(salt[:], cipherSeedBytes[saltOffset:saltOffset+SaltSize])
 	cipherSeed := cipherSeedBytes[1:saltOffset]
 	checksum := cipherSeedBytes[checkSumOffset:]
 
 	// Before we perform any crypto operations, we'll re-create and verify
 	// the checksum to ensure that the user input the proper set of words.
-	freshChecksum := crc32.Checksum(cipherSeedBytes[:checkSumOffset], crcTable)
+	freshChecksum := crc32.Checksum(
+		cipherSeedBytes[:checkSumOffset], crcTable,
+	)
 	if freshChecksum != binary.BigEndian.Uint32(checksum) {
-		return plainSeed, ErrIncorrectMnemonic
+		return plainSeed, salt, ErrIncorrectMnemonic
 	}
 
 	// With the salt separated from the cipher text, we'll now obtain the
 	// key used for encryption.
-	key, err := scrypt.Key(pass, salt, scryptN, scryptR, scryptP, keyLen)
+	key, err := scrypt.Key(pass, salt[:], scryptN, scryptR, scryptP, keyLen)
 	if err != nil {
-		return plainSeed, err
+		return plainSeed, salt, err
 	}
 
 	// We'll also extract the AD that will be required to properly pass the
@@ -488,18 +533,19 @@ func decipherCipherSeed(cipherSeedBytes [EncipheredCipherSeedSize]byte,
 		key, nil, [][]byte{ad[:]}, CipherTextExpansion, cipherSeed, nil,
 	)
 	if !ok {
-		return plainSeed, ErrInvalidPass
+		return plainSeed, salt, ErrInvalidPass
 	}
 	copy(plainSeed[:], plainSeedBytes)
 
-	return plainSeed, nil
+	return plainSeed, salt, nil
 
 }
 
 // Decipher attempts to decipher the encoded mnemonic by first mapping to the
 // original ciphertext, then applying our deciphering scheme. ErrInvalidPass
 // will be returned if the passphrase is incorrect.
-func (m *Mnemonic) Decipher(pass []byte) ([DecipheredCipherSeedSize]byte, error) {
+func (m *Mnemonic) Decipher(pass []byte) ([DecipheredCipherSeedSize]byte,
+	[SaltSize]byte, error) {
 
 	// Before we attempt to map the mnemonic back to the original
 	// ciphertext, we'll ensure that all the word are actually a part of
@@ -512,10 +558,11 @@ func (m *Mnemonic) Decipher(pass []byte) ([DecipheredCipherSeedSize]byte, error)
 	for i, word := range m {
 		if _, ok := wordDict[word]; !ok {
 			emptySeed := [DecipheredCipherSeedSize]byte{}
-			return emptySeed, ErrUnknownMnenomicWord{
-				Word:  word,
-				Index: uint8(i),
-			}
+			return emptySeed, [SaltSize]byte{},
+				ErrUnknownMnemonicWord{
+					Word:  word,
+					Index: uint8(i),
+				}
 		}
 	}
 
@@ -537,20 +584,20 @@ func (m *Mnemonic) Decipher(pass []byte) ([DecipheredCipherSeedSize]byte, error)
 }
 
 // ChangePass takes an existing mnemonic, and passphrase for said mnemonic and
-// re-enciphers the plaintext cipher seed into a brand new mnemonic. This can
+// re-enciphers the plaintext cipher seed into a brand-new mnemonic. This can
 // be used to allow users to re-encrypt the same seed with multiple pass
 // phrases, or just change the passphrase on an existing seed.
 func (m *Mnemonic) ChangePass(oldPass, newPass []byte) (Mnemonic, error) {
-	var newmnemonic Mnemonic
+	var newMnemonic Mnemonic
 
 	// First, we'll try to decrypt the current mnemonic using the existing
 	// passphrase. If this fails, then we can't proceed any further.
 	cipherSeed, err := m.ToCipherSeed(oldPass)
 	if err != nil {
-		return newmnemonic, err
+		return newMnemonic, err
 	}
 
-	// If the deciperhing was successful, then we'll now re-encipher using
+	// If the deciphering was successful, then we'll now re-encipher using
 	// the new user provided passphrase.
 	return cipherSeed.ToMnemonic(newPass)
 }
diff --git a/aezeed/cipherseed_test.go b/aezeed/cipherseed_test.go
index 8f3043d4a..7547f25e9 100644
--- a/aezeed/cipherseed_test.go
+++ b/aezeed/cipherseed_test.go
@@ -6,6 +6,8 @@ import (
 	"testing"
 	"testing/quick"
 	"time"
+
+	"github.com/stretchr/testify/require"
 )
 
 // TestVector defines the values that are used to create a fully initialized
@@ -14,7 +16,7 @@ type TestVector struct {
 	version          uint8
 	time             time.Time
 	entropy          [EntropySize]byte
-	salt             [saltSize]byte
+	salt             [SaltSize]byte
 	password         []byte
 	expectedMnemonic [NumMnemonicWords]string
 	expectedBirthday uint16
@@ -27,56 +29,48 @@ var (
 		0x0d, 0xe7, 0x95, 0xe4,
 		0x1e, 0x0b, 0x4c, 0xfd,
 	}
-	testSalt = [saltSize]byte{
+	testSalt = [SaltSize]byte{
 		0x73, 0x61, 0x6c, 0x74, 0x31, // equal to "salt1"
 	}
-	version0TestVectors = []TestVector{
-		{
-			version:  0,
-			time:     BitcoinGenesisDate,
-			entropy:  testEntropy,
-			salt:     testSalt,
-			password: []byte{},
-			expectedMnemonic: [NumMnemonicWords]string{
-				"ability", "liquid", "travel", "stem", "barely", "drastic",
-				"pact", "cupboard", "apple", "thrive", "morning", "oak",
-				"feature", "tissue", "couch", "old", "math", "inform",
-				"success", "suggest", "drink", "motion", "know", "royal",
-			},
-			expectedBirthday: 0,
+	version0TestVectors = []TestVector{{
+		version:  0,
+		time:     BitcoinGenesisDate,
+		entropy:  testEntropy,
+		salt:     testSalt,
+		password: []byte{},
+		expectedMnemonic: [NumMnemonicWords]string{
+			"ability", "liquid", "travel", "stem", "barely", "drastic",
+			"pact", "cupboard", "apple", "thrive", "morning", "oak",
+			"feature", "tissue", "couch", "old", "math", "inform",
+			"success", "suggest", "drink", "motion", "know", "royal",
 		},
-		{
-			version:  0,
-			time:     time.Unix(1521799345, 0), // 03/23/2018 @ 10:02am (UTC)
-			entropy:  testEntropy,
-			salt:     testSalt,
-			password: []byte("!very_safe_55345_password*"),
-			expectedMnemonic: [NumMnemonicWords]string{
-				"able", "tree", "stool", "crush", "transfer", "cloud",
-				"cross", "three", "profit", "outside", "hen", "citizen",
-				"plate", "ride", "require", "leg", "siren", "drum",
-				"success", "suggest", "drink", "require", "fiscal", "upgrade",
-			},
-			expectedBirthday: 3365,
+		expectedBirthday: 0,
+	}, {
+		version:  0,
+		time:     time.Unix(1521799345, 0), // 03/23/2018 @ 10:02am (UTC)
+		entropy:  testEntropy,
+		salt:     testSalt,
+		password: []byte("!very_safe_55345_password*"),
+		expectedMnemonic: [NumMnemonicWords]string{
+			"able", "tree", "stool", "crush", "transfer", "cloud",
+			"cross", "three", "profit", "outside", "hen", "citizen",
+			"plate", "ride", "require", "leg", "siren", "drum",
+			"success", "suggest", "drink", "require", "fiscal", "upgrade",
 		},
-	}
+		expectedBirthday: 3365,
+	}}
 )
 
 func assertCipherSeedEqual(t *testing.T, cipherSeed *CipherSeed,
 	cipherSeed2 *CipherSeed) {
 
-	if cipherSeed.InternalVersion != cipherSeed2.InternalVersion {
-		t.Fatalf("mismatched versions: expected %v, got %v",
-			cipherSeed.InternalVersion, cipherSeed2.InternalVersion)
-	}
-	if cipherSeed.Birthday != cipherSeed2.Birthday {
-		t.Fatalf("mismatched birthday: expected %v, got %v",
-			cipherSeed.Birthday, cipherSeed2.Birthday)
-	}
-	if cipherSeed.Entropy != cipherSeed2.Entropy {
-		t.Fatalf("mismatched versions: expected %x, got %x",
-			cipherSeed.Entropy[:], cipherSeed2.Entropy[:])
-	}
+	require.Equal(
+		t, cipherSeed.InternalVersion, cipherSeed2.InternalVersion,
+		"internal version",
+	)
+	require.Equal(t, cipherSeed.Birthday, cipherSeed2.Birthday, "birthday")
+	require.Equal(t, cipherSeed.Entropy, cipherSeed2.Entropy, "entropy")
+	require.Equal(t, cipherSeed.salt, cipherSeed2.salt, "salt")
 }
 
 // TestAezeedVersion0TestVectors tests some fixed test vector values against
@@ -84,41 +78,60 @@ func assertCipherSeedEqual(t *testing.T, cipherSeed *CipherSeed,
 func TestAezeedVersion0TestVectors(t *testing.T) {
 	t.Parallel()
 
-	// To minimize the number of tests that need to be run,
-	// go through all test vectors in the same test and also check
-	// the birthday calculation while we're at it.
+	// To minimize the number of tests that need to be run, go through all
+	// test vectors in the same test and also check the birthday calculation
+	// while we're at it.
 	for _, v := range version0TestVectors {
 		// First, we create new cipher seed with the given values
 		// from the test vector.
 		cipherSeed, err := New(v.version, &v.entropy, v.time)
-		if err != nil {
-			t.Fatalf("unable to create seed: %v", err)
-		}
+		require.NoError(t, err)
 
-		// Then we need to set the salt to the pre-defined value, otherwise
-		// we'll end up with randomness in our mnemonics.
-		cipherSeed.salt = testSalt
+		// Then we need to set the salt to the pre-defined value,
+		// otherwise we'll end up with randomness in our mnemonics.
+		cipherSeed.salt = v.salt
 
-		// Now that the seed has been created, we'll attempt to convert it to a
-		// valid mnemonic.
+		// Now that the seed has been created, we'll attempt to convert
+		// it to a valid mnemonic.
 		mnemonic, err := cipherSeed.ToMnemonic(v.password)
-		if err != nil {
-			t.Fatalf("unable to create mnemonic: %v", err)
-		}
+		require.NoError(t, err)
 
 		// Finally we compare the generated mnemonic and birthday to the
 		// expected value.
-		if mnemonic != v.expectedMnemonic {
-			t.Fatalf("mismatched mnemonic: expected %s, got %s",
-				v.expectedMnemonic, mnemonic)
-		}
-		if cipherSeed.Birthday != v.expectedBirthday {
-			t.Fatalf("mismatched birthday: expected %v, got %v",
-				v.expectedBirthday, cipherSeed.Birthday)
-		}
+		require.Equal(t, v.expectedMnemonic[:], mnemonic[:])
+		require.Equal(t, v.expectedBirthday, cipherSeed.Birthday)
 	}
 }
 
+// TestWithRandomnessSource tests that seed generation is fully deterministic
+// when a custom static randomness source is provided.
+func TestWithRandomnessSource(t *testing.T) {
+	sourceData := append([]byte{}, testEntropy[:]...)
+	sourceData = append(sourceData, testSalt[:]...)
+	src := bytes.NewReader(sourceData)
+
+	// First, we create new cipher seed with the given values from the test
+	// vector but with no entropy.
+	v := version0TestVectors[0]
+	cipherSeed, err := New(
+		v.version, nil, v.time, WithRandomnessSource(src),
+	)
+	require.NoError(t, err)
+
+	// The salt should be set to our test salt.
+	require.Equal(t, testSalt, cipherSeed.salt)
+
+	// Now that the seed has been created, we'll attempt to convert it to a
+	// valid mnemonic.
+	mnemonic, err := cipherSeed.ToMnemonic(v.password)
+	require.NoError(t, err)
+
+	// Finally, we compare the generated mnemonic and birthday to the
+	// expected value.
+	require.Equal(t, v.expectedMnemonic[:], mnemonic[:])
+	require.Equal(t, v.expectedBirthday, cipherSeed.Birthday)
+}
+
 // TestEmptyPassphraseDerivation tests that the aezeed scheme is able to derive
 // a proper mnemonic, and decipher that mnemonic when the user uses an empty
 // passphrase.
@@ -131,23 +144,17 @@ func TestEmptyPassphraseDerivation(t *testing.T) {
 	// We'll now create a new cipher seed with an internal version of zero
 	// to simulate a wallet that just adopted the scheme.
 	cipherSeed, err := New(0, &testEntropy, time.Now())
-	if err != nil {
-		t.Fatalf("unable to create seed: %v", err)
-	}
+	require.NoError(t, err)
 
 	// Now that the seed has been created, we'll attempt to convert it to a
 	// valid mnemonic.
 	mnemonic, err := cipherSeed.ToMnemonic(pass)
-	if err != nil {
-		t.Fatalf("unable to create mnemonic: %v", err)
-	}
+	require.NoError(t, err)
 
 	// Next, we'll try to decrypt the mnemonic with the passphrase that we
 	// used.
 	cipherSeed2, err := mnemonic.ToCipherSeed(pass)
-	if err != nil {
-		t.Fatalf("unable to decrypt mnemonic: %v", err)
-	}
+	require.NoError(t, err)
 
 	// Finally, we'll ensure that the uncovered cipher seed matches
 	// precisely.
@@ -165,23 +172,17 @@ func TestManualEntropyGeneration(t *testing.T) {
 	// We'll now create a new cipher seed with an internal version of zero
 	// to simulate a wallet that just adopted the scheme.
 	cipherSeed, err := New(0, nil, time.Now())
-	if err != nil {
-		t.Fatalf("unable to create seed: %v", err)
-	}
+	require.NoError(t, err)
 
 	// Now that the seed has been created, we'll attempt to convert it to a
 	// valid mnemonic.
 	mnemonic, err := cipherSeed.ToMnemonic(pass)
-	if err != nil {
-		t.Fatalf("unable to create mnemonic: %v", err)
-	}
+	require.NoError(t, err)
 
 	// Next, we'll try to decrypt the mnemonic with the passphrase that we
 	// used.
 	cipherSeed2, err := mnemonic.ToCipherSeed(pass)
-	if err != nil {
-		t.Fatalf("unable to decrypt mnemonic: %v", err)
-	}
+	require.NoError(t, err)
 
 	// Finally, we'll ensure that the uncovered cipher seed matches
 	// precisely.
@@ -189,7 +190,7 @@ func TestManualEntropyGeneration(t *testing.T) {
 }
 
 // TestInvalidPassphraseRejection tests if a caller attempts to use the
-// incorrect passprhase for an enciphered seed, then the proper error is
+// incorrect passphrase for an enciphered seed, then the proper error is
 // returned.
 func TestInvalidPassphraseRejection(t *testing.T) {
 	t.Parallel()
@@ -197,23 +198,18 @@ func TestInvalidPassphraseRejection(t *testing.T) {
 	// First, we'll generate a new cipher seed with a test passphrase.
 	pass := []byte("test")
 	cipherSeed, err := New(0, &testEntropy, time.Now())
-	if err != nil {
-		t.Fatalf("unable to create seed: %v", err)
-	}
+	require.NoError(t, err)
 
 	// Now that we have our cipher seed, we'll encipher it and request a
 	// mnemonic that we can use to recover later.
 	mnemonic, err := cipherSeed.ToMnemonic(pass)
-	if err != nil {
-		t.Fatalf("unable to create mnemonic: %v", err)
-	}
+	require.NoError(t, err)
 
 	// If we try to decipher with the wrong passphrase, we should get the
 	// proper error.
 	wrongPass := []byte("kek")
-	if _, err := mnemonic.ToCipherSeed(wrongPass); err != ErrInvalidPass {
-		t.Fatalf("expected ErrInvalidPass, instead got %v", err)
-	}
+	_, err = mnemonic.ToCipherSeed(wrongPass)
+	require.Equal(t, ErrInvalidPass, err)
 }
 
 // TestRawEncipherDecipher tests that callers are able to use the raw methods
@@ -224,36 +220,29 @@ func TestRawEncipherDecipher(t *testing.T) {
 	// First, we'll generate a new cipher seed with a test passphrase.
 	pass := []byte("test")
 	cipherSeed, err := New(0, &testEntropy, time.Now())
-	if err != nil {
-		t.Fatalf("unable to create seed: %v", err)
-	}
+	require.NoError(t, err)
 
-	// With the cipherseed obtained, we'll now use the raw encipher method
+	// With the cipher seed obtained, we'll now use the raw encipher method
 	// to obtain our final cipher text.
 	cipherText, err := cipherSeed.Encipher(pass)
-	if err != nil {
-		t.Fatalf("unable to encipher seed: %v", err)
-	}
+	require.NoError(t, err)
 
 	mnemonic, err := cipherTextToMnemonic(cipherText)
-	if err != nil {
-		t.Fatalf("unable to create mnemonic: %v", err)
-	}
+	require.NoError(t, err)
 
 	// Now that we have the ciphertext (mapped to the mnemonic), we'll
 	// attempt to decipher it raw using the user's passphrase.
-	plainSeedBytes, err := mnemonic.Decipher(pass)
-	if err != nil {
-		t.Fatalf("unable to decipher: %v", err)
-	}
+	plainSeedBytes, salt, err := mnemonic.Decipher(pass)
+	require.NoError(t, err)
+	require.Equal(t, cipherSeed.salt, salt)
 
 	// If we deserialize the plaintext seed bytes, it should exactly match
 	// the original cipher seed.
-	var newSeed CipherSeed
-	err = newSeed.decode(bytes.NewReader(plainSeedBytes[:]))
-	if err != nil {
-		t.Fatalf("unable to decode cipher seed: %v", err)
+	newSeed := CipherSeed{
+		salt: salt,
 	}
+	err = newSeed.decode(bytes.NewReader(plainSeedBytes[:]))
+	require.NoError(t, err)
 
 	assertCipherSeedEqual(t, cipherSeed, &newSeed)
 }
@@ -266,17 +255,13 @@ func TestInvalidExternalVersion(t *testing.T) {
 
 	// First, we'll generate a new cipher seed.
 	cipherSeed, err := New(0, &testEntropy, time.Now())
-	if err != nil {
-		t.Fatalf("unable to create seed: %v", err)
-	}
+	require.NoError(t, err)
 
-	// With the cipherseed obtained, we'll now use the raw encipher method
+	// With the cipher seed obtained, we'll now use the raw encipher method
 	// to obtain our final cipher text.
 	pass := []byte("newpasswhodis")
 	cipherText, err := cipherSeed.Encipher(pass)
-	if err != nil {
-		t.Fatalf("unable to encipher seed: %v", err)
-	}
+	require.NoError(t, err)
 
 	// Now that we have the cipher text, we'll modify the first byte to be
 	// an invalid version.
@@ -284,11 +269,8 @@ func TestInvalidExternalVersion(t *testing.T) {
 
 	// With the version swapped, if we try to decipher it, (no matter the
 	// passphrase), it should fail.
-	_, err = decipherCipherSeed(cipherText, []byte("kek"))
-	if err != ErrIncorrectVersion {
-		t.Fatalf("wrong error: expected ErrIncorrectVersion, "+
-			"got %v", err)
-	}
+	_, _, err = decipherCipherSeed(cipherText, []byte("kek"))
+	require.Equal(t, ErrIncorrectVersion, err)
 }
 
 // TestChangePassphrase tests that we're able to generate a cipher seed, then
@@ -300,31 +282,23 @@ func TestChangePassphrase(t *testing.T) {
 	// First, we'll generate a new cipher seed with a test passphrase.
 	pass := []byte("test")
 	cipherSeed, err := New(0, &testEntropy, time.Now())
-	if err != nil {
-		t.Fatalf("unable to create seed: %v", err)
-	}
+	require.NoError(t, err)
 
 	// Now that we have our cipher seed, we'll encipher it and request a
 	// mnemonic that we can use to recover later.
 	mnemonic, err := cipherSeed.ToMnemonic(pass)
-	if err != nil {
-		t.Fatalf("unable to create mnemonic: %v", err)
-	}
+	require.NoError(t, err)
 
 	// Now that have the mnemonic, we'll attempt to re-encipher the
-	// passphrase in order to get a brand new mnemonic.
+	// passphrase in order to get a brand-new mnemonic.
 	newPass := []byte("strongerpassyeh!")
-	newmnemonic, err := mnemonic.ChangePass(pass, newPass)
-	if err != nil {
-		t.Fatalf("unable to change passphrase: %v", err)
-	}
+	newMnemonic, err := mnemonic.ChangePass(pass, newPass)
+	require.NoError(t, err)
 
 	// We'll now attempt to decipher the new mnemonic using the new
 	// passphrase to arrive at (what should be) the original cipher seed.
-	newCipherSeed, err := newmnemonic.ToCipherSeed(newPass)
-	if err != nil {
-		t.Fatalf("unable to decipher cipher seed: %v", err)
-	}
+	newCipherSeed, err := newMnemonic.ToCipherSeed(newPass)
+	require.NoError(t, err)
 
 	// Now that we have the cipher seed, we'll verify that the plaintext
 	// seed matches *identically*.
@@ -332,7 +306,7 @@ func TestChangePassphrase(t *testing.T) {
 }
 
 // TestChangePassphraseWrongPass tests that if we have a valid enciphered
-// cipherseed, but then try to change the password with the *wrong* password,
+// cipher seed, but then try to change the password with the *wrong* password,
 // then we get an error.
 func TestChangePassphraseWrongPass(t *testing.T) {
 	t.Parallel()
@@ -340,27 +314,21 @@ func TestChangePassphraseWrongPass(t *testing.T) {
 	// First, we'll generate a new cipher seed with a test passphrase.
 	pass := []byte("test")
 	cipherSeed, err := New(0, &testEntropy, time.Now())
-	if err != nil {
-		t.Fatalf("unable to create seed: %v", err)
-	}
+	require.NoError(t, err)
 
 	// Now that we have our cipher seed, we'll encipher it and request a
 	// mnemonic that we can use to recover later.
 	mnemonic, err := cipherSeed.ToMnemonic(pass)
-	if err != nil {
-		t.Fatalf("unable to create mnemonic: %v", err)
-	}
+	require.NoError(t, err)
 
 	// Now that have the mnemonic, we'll attempt to re-encipher the
-	// passphrase in order to get a brand new mnemonic. However, we'll be
+	// passphrase in order to get a brand-new mnemonic. However, we'll be
 	// using the *wrong* passphrase. This should result in an
 	// ErrInvalidPass error.
 	wrongPass := []byte("kek")
 	newPass := []byte("strongerpassyeh!")
 	_, err = mnemonic.ChangePass(wrongPass, newPass)
-	if err != ErrInvalidPass {
-		t.Fatalf("expected ErrInvalidPass, instead got %v", err)
-	}
+	require.Equal(t, ErrInvalidPass, err)
 }
 
 // TestMnemonicEncoding uses quickcheck like property based testing to ensure
@@ -397,7 +365,7 @@ func TestMnemonicEncoding(t *testing.T) {
 }
 
 // TestEncipherDecipher is a property-based test that ensures that given a
-// version, entropy, and birthday, then we're able to map that to a cipherseed
+// version, entropy, and birthday, then we're able to map that to a cipher seed
 // mnemonic, then back to the original plaintext cipher seed.
 func TestEncipherDecipher(t *testing.T) {
 	t.Parallel()
@@ -406,7 +374,7 @@ func TestEncipherDecipher(t *testing.T) {
 	// ensure that given a random seed tuple (internal version, entropy,
 	// and birthday) we're able to convert that to a valid cipher seed.
 	// Additionally, we should be able to decipher the final mnemonic, and
-	// recover the original cipherseed.
+	// recover the original cipher seed.
 	mainScenario := func(version uint8, entropy [EntropySize]byte,
 		nowInt int64, pass [20]byte) bool {
 
@@ -458,15 +426,17 @@ func TestEncipherDecipher(t *testing.T) {
 // arbitrary raw seed.
 func TestSeedEncodeDecode(t *testing.T) {
 	// mainScenario is the primary driver of our property-based test. We'll
-	// ensure that given a random cipher seed, we can encode it an decode
+	// ensure that given a random cipher seed, we can encode it and decode
 	// it precisely.
 	mainScenario := func(version uint8, nowInt int64,
 		entropy [EntropySize]byte) bool {
 
 		now := time.Unix(nowInt, 0)
+		day := time.Hour * 24
+		numDaysSinceGenesis := now.Sub(BitcoinGenesisDate) / day
 		seed := CipherSeed{
 			InternalVersion: version,
-			Birthday:        uint16(now.Sub(BitcoinGenesisDate) / (time.Hour * 24)),
+			Birthday:        uint16(numDaysSinceGenesis),
 			Entropy:         entropy,
 		}
 
@@ -506,25 +476,21 @@ func TestSeedEncodeDecode(t *testing.T) {
 	}
 }
 
-// TestDecipherUnknownMnenomicWord tests that if we obtain a mnemonic, the
+// TestDecipherUnknownMnemonicWord tests that if we obtain a mnemonic, then
 // modify one of the words to not be within the word list, then it's detected
 // when we attempt to map it back to the original cipher seed.
-func TestDecipherUnknownMnenomicWord(t *testing.T) {
+func TestDecipherUnknownMnemonicWord(t *testing.T) {
 	t.Parallel()
 
 	// First, we'll create a new cipher seed with "test" ass a password.
 	pass := []byte("test")
 	cipherSeed, err := New(0, &testEntropy, time.Now())
-	if err != nil {
-		t.Fatalf("unable to create seed: %v", err)
-	}
+	require.NoError(t, err)
 
 	// Now that we have our cipher seed, we'll encipher it and request a
 	// mnemonic that we can use to recover later.
 	mnemonic, err := cipherSeed.ToMnemonic(pass)
-	if err != nil {
-		t.Fatalf("unable to create mnemonic: %v", err)
-	}
+	require.NoError(t, err)
 
 	// Before we attempt to decrypt the cipher seed, we'll mutate one of
 	// the word so it isn't actually in our final word list.
@@ -532,58 +498,36 @@ func TestDecipherUnknownMnenomicWord(t *testing.T) {
 	mnemonic[randIndex] = "kek"
 
 	// If we attempt to map back to the original cipher seed now, then we
-	// should get ErrUnknownMnenomicWord.
+	// should get ErrUnknownMnemonicWord.
 	_, err = mnemonic.ToCipherSeed(pass)
-	if err == nil {
-		t.Fatalf("expected ErrUnknownMnenomicWord error")
-	}
+	wordErr := &ErrUnknownMnemonicWord{}
+	require.ErrorAs(t, err, wordErr)
+	require.Equal(t, "kek", wordErr.Word)
+	require.Equal(t, uint8(randIndex), wordErr.Index)
 
-	wordErr, ok := err.(ErrUnknownMnenomicWord)
-	if !ok {
-		t.Fatalf("expected ErrUnknownMnenomicWord instead got %T", err)
-	}
-
-	if wordErr.Word != "kek" {
-		t.Fatalf("word mismatch: expected %v, got %v", "kek", wordErr.Word)
-	}
-	if int32(wordErr.Index) != randIndex {
-		t.Fatalf("wrong index detected: expected %v, got %v",
-			randIndex, wordErr.Index)
-	}
-
-	// If the mnemonic includes a word that is not in the englishList
-	// it fails, even when it is a substring of a valid word
-	// Example: `heart` is in the list, `hear` is not
+	// If the mnemonic includes a word that is not in the englishList it
+	// fails, even when it is a substring of a valid word Example: `heart`
+	// is in the list, `hear` is not.
 	mnemonic[randIndex] = "hear"
 
 	// If we attempt to map back to the original cipher seed now, then we
-	// should get ErrUnknownMnenomicWord.
+	// should get ErrUnknownMnemonicWord.
 	_, err = mnemonic.ToCipherSeed(pass)
-	if err == nil {
-		t.Fatalf("expected ErrUnknownMnenomicWord error")
-	}
-	_, ok = err.(ErrUnknownMnenomicWord)
-	if !ok {
-		t.Fatalf("expected ErrUnknownMnenomicWord instead got %T", err)
-	}
+	require.ErrorAs(t, err, wordErr)
 }
 
-// TestDecipherIncorrectMnemonic tests that if we obtain a cipherseed, but then
+// TestDecipherIncorrectMnemonic tests that if we obtain a cipher seed, but then
 // swap out words, then checksum fails.
 func TestDecipherIncorrectMnemonic(t *testing.T) {
 	// First, we'll create a new cipher seed with "test" ass a password.
 	pass := []byte("test")
 	cipherSeed, err := New(0, &testEntropy, time.Now())
-	if err != nil {
-		t.Fatalf("unable to create seed: %v", err)
-	}
+	require.NoError(t, err)
 
 	// Now that we have our cipher seed, we'll encipher it and request a
 	// mnemonic that we can use to recover later.
 	mnemonic, err := cipherSeed.ToMnemonic(pass)
-	if err != nil {
-		t.Fatalf("unable to create mnemonic: %v", err)
-	}
+	require.NoError(t, err)
 
 	// We'll now swap out two words from the mnemonic, which should trigger
 	// a checksum failure.
@@ -593,11 +537,9 @@ func TestDecipherIncorrectMnemonic(t *testing.T) {
 
 	// If we attempt to decrypt now, we should get a checksum failure.
 	// If we attempt to map back to the original cipher seed now, then we
-	// should get ErrUnknownMnenomicWord.
+	// should get ErrIncorrectMnemonic.
 	_, err = mnemonic.ToCipherSeed(pass)
-	if err != ErrIncorrectMnemonic {
-		t.Fatalf("expected ErrIncorrectMnemonic error")
-	}
+	require.Equal(t, ErrIncorrectMnemonic, err)
 }
 
 // TODO(roasbeef): add test failure checksum fail is modified, new error
diff --git a/aezeed/errors.go b/aezeed/errors.go
index 34af964bf..8f213c069 100644
--- a/aezeed/errors.go
+++ b/aezeed/errors.go
@@ -18,9 +18,9 @@ var (
 		"match")
 )
 
-// ErrUnknownMnenomicWord is returned when attempting to decipher and
+// ErrUnknownMnemonicWord is returned when attempting to decipher and
 // enciphered mnemonic, but a word encountered isn't a member of our word list.
-type ErrUnknownMnenomicWord struct {
+type ErrUnknownMnemonicWord struct {
 	// Word is the unknown word in the mnemonic phrase.
 	Word string
 
@@ -29,8 +29,8 @@ type ErrUnknownMnenomicWord struct {
 	Index uint8
 }
 
-// Error returns a human readable string describing the error.
-func (e ErrUnknownMnenomicWord) Error() string {
+// Error returns a human-readable string describing the error.
+func (e ErrUnknownMnemonicWord) Error() string {
 	return fmt.Sprintf("word %v isn't a part of default word list "+
 		"(index=%v)", e.Word, e.Index)
 }
diff --git a/config_builder.go b/config_builder.go
index 71ab15611..18e9a3f6f 100644
--- a/config_builder.go
+++ b/config_builder.go
@@ -965,14 +965,13 @@ func waitForWalletPassword(cfg *Config,
 		// seed. If it's greater than the current key derivation
 		// version, then we'll return an error as we don't understand
 		// this.
-		const latestVersion = keychain.KeyDerivationVersion
 		if cipherSeed != nil &&
-			cipherSeed.InternalVersion != latestVersion {
+			!keychain.IsKnownVersion(cipherSeed.InternalVersion) {
 
 			return nil, fmt.Errorf("invalid internal "+
-				"seed version %v, current version is %v",
+				"seed version %v, current max version is %v",
 				cipherSeed.InternalVersion,
-				keychain.KeyDerivationVersion)
+				keychain.CurrentKeyDerivationVersion)
 		}
 
 		loader, err := btcwallet.NewWalletLoader(
diff --git a/docs/release-notes/release-notes-0.15.0.md b/docs/release-notes/release-notes-0.15.0.md
index 4a1e49534..c3c824b3a 100644
--- a/docs/release-notes/release-notes-0.15.0.md
+++ b/docs/release-notes/release-notes-0.15.0.md
@@ -29,6 +29,11 @@ The `walletrpc.SignPsbt` RPC now also supports [Taproot PSBT
 signing](https://github.com/lightningnetwork/lnd/pull/6450) to fully support
 remote signing with Taproot outputs. 
 
+The internal version of the `aezeed` [was bumped to `1` to mark new seeds that
+were created after introducing the Taproot key
+derivation](https://github.com/lightningnetwork/lnd/pull/6524) to simplify
+detecting Taproot compatibility of a seed.
+
 ## MuSig2
 
 The [`signrpc.Signer` RPC service now supports EXPERIMENTAL MuSig2
diff --git a/keychain/derivation.go b/keychain/derivation.go
index 0d6a4ee5b..0e42ae966 100644
--- a/keychain/derivation.go
+++ b/keychain/derivation.go
@@ -8,11 +8,20 @@ import (
 )
 
 const (
-	// KeyDerivationVersion is the version of the key derivation schema
-	// defined below. We use a version as this means that we'll be able to
-	// accept new seed in the future and be able to discern if the software
-	// is compatible with the version of the seed.
-	KeyDerivationVersion = 0
+	// KeyDerivationVersionLegacy is the previous version of the key
+	// derivation schema defined below. We use a version as this means that
+	// we'll be able to accept new seed in the future and be able to discern
+	// if the software is compatible with the version of the seed.
+	KeyDerivationVersionLegacy = 0
+
+	// KeyDerivationVersionTaproot is the most recent version of the key
+	// derivation scheme that marks the introduction of the Taproot
+	// derivation with BIP0086 support.
+	KeyDerivationVersionTaproot = 1
+
+	// CurrentKeyDerivationVersion is the current default key derivation
+	// version that is used for new seeds.
+	CurrentKeyDerivationVersion = KeyDerivationVersionTaproot
 
 	// BIP0043Purpose is the "purpose" value that we'll use for the first
 	// version or our key derivation scheme. All keys are expected to be
@@ -25,6 +34,13 @@ const (
 	BIP0043Purpose = 1017
 )
 
+// IsKnownVersion returns true if the given version is one of the known
+// derivation scheme versions as defined by this package.
+func IsKnownVersion(internalVersion uint8) bool {
+	return internalVersion == KeyDerivationVersionLegacy ||
+		internalVersion == KeyDerivationVersionTaproot
+}
+
 var (
 	// MaxKeyRangeScan is the maximum number of keys that we'll attempt to
 	// scan with if a caller knows the public key, but not the KeyLocator
diff --git a/walletunlocker/service.go b/walletunlocker/service.go
index ce3997666..e473a0c5b 100644
--- a/walletunlocker/service.go
+++ b/walletunlocker/service.go
@@ -309,7 +309,7 @@ func (u *UnlockerService) GenSeed(_ context.Context,
 	// instance.
 	//
 	cipherSeed, err := aezeed.New(
-		keychain.KeyDerivationVersion, &entropy, time.Now(),
+		keychain.CurrentKeyDerivationVersion, &entropy, time.Now(),
 	)
 	if err != nil {
 		return nil, err
diff --git a/walletunlocker/service_test.go b/walletunlocker/service_test.go
index 88274459b..5c723d759 100644
--- a/walletunlocker/service_test.go
+++ b/walletunlocker/service_test.go
@@ -91,7 +91,7 @@ func createSeedAndMnemonic(t *testing.T,
 	pass []byte) (*aezeed.CipherSeed, aezeed.Mnemonic) {
 
 	cipherSeed, err := aezeed.New(
-		keychain.KeyDerivationVersion, &testEntropy, time.Now(),
+		keychain.CurrentKeyDerivationVersion, &testEntropy, time.Now(),
 	)
 	require.NoError(t, err)