diff --git a/discovery/chan_series.go b/discovery/chan_series.go
index 362a22921..d91396a54 100644
--- a/discovery/chan_series.go
+++ b/discovery/chan_series.go
@@ -3,6 +3,7 @@ package discovery
 import (
 	"time"
 
+	"github.com/btcsuite/btcd/btcutil"
 	"github.com/btcsuite/btcd/chaincfg/chainhash"
 	"github.com/lightningnetwork/lnd/channeldb"
 	"github.com/lightningnetwork/lnd/lnwire"
@@ -132,11 +133,16 @@ func (c *ChanSeries) UpdatesInHorizon(chain chainhash.Hash,
 			return nil, err
 		}
 
+		var capacity btcutil.Amount
+		if ann, ok := chanAnn.(*lnwire.ChannelAnnouncement2); ok {
+			capacity = btcutil.Amount(ann.Capacity.Val)
+		}
+
 		updates = append(updates, chanAnn)
 		if edge1 != nil {
 			// We don't want to send channel updates that don't
 			// conform to the spec (anymore).
-			err := edge1.Validate(0)
+			err := edge1.Validate(capacity)
 			if err != nil {
 				log.Errorf("not sending invalid channel "+
 					"update %v: %v", edge1, err)
@@ -145,7 +151,7 @@ func (c *ChanSeries) UpdatesInHorizon(chain chainhash.Hash,
 			}
 		}
 		if edge2 != nil {
-			err := edge2.Validate(0)
+			err := edge2.Validate(capacity)
 			if err != nil {
 				log.Errorf("not sending invalid channel "+
 					"update %v: %v", edge2, err)
diff --git a/netann/channel_announcement.go b/netann/channel_announcement.go
index 71d7bf36c..e8088a26c 100644
--- a/netann/channel_announcement.go
+++ b/netann/channel_announcement.go
@@ -14,9 +14,9 @@ import (
 // structs for announcing new channels to other peers, or simply syncing up a
 // peer's initial routing table upon connect.
 func CreateChanAnnouncement(chanProof models.ChannelAuthProof,
-	chanInfo models.ChannelEdgeInfo, edge1,
-	edge2 models.ChannelEdgePolicy) (*lnwire.ChannelAnnouncement1,
-	*lnwire.ChannelUpdate1, *lnwire.ChannelUpdate1, error) {
+	chanInfo models.ChannelEdgeInfo,
+	edge1, edge2 models.ChannelEdgePolicy) (lnwire.ChannelAnnouncement,
+	lnwire.ChannelUpdate, lnwire.ChannelUpdate, error) {
 
 	switch proof := chanProof.(type) {
 	case *models.ChannelAuthProof1:
@@ -50,6 +50,37 @@ func CreateChanAnnouncement(chanProof models.ChannelAuthProof,
 
 		return createChanAnnouncement1(proof, info, e1, e2)
 
+	case *models.ChannelAuthProof2:
+		info, ok := chanInfo.(*models.ChannelEdgeInfo2)
+		if !ok {
+			return nil, nil, nil, fmt.Errorf("expected type "+
+				"ChannelEdgeInfo2 to be paired with "+
+				"ChannelAuthProof2, got: %T", chanInfo)
+		}
+
+		var e1, e2 *models.ChannelEdgePolicy2
+		if edge1 != nil {
+			e1, ok = edge1.(*models.ChannelEdgePolicy2)
+			if !ok {
+				return nil, nil, nil, fmt.Errorf("expected "+
+					"type ChannelEdgePolicy2 to be "+
+					"paired with ChannelEdgeInfo2, "+
+					"got: %T", edge1)
+			}
+		}
+
+		if edge2 != nil {
+			e2, ok = edge2.(*models.ChannelEdgePolicy2)
+			if !ok {
+				return nil, nil, nil, fmt.Errorf("expected "+
+					"type ChannelEdgePolicy2 to be "+
+					"paired with ChannelEdgeInfo2, "+
+					"got: %T", edge2)
+			}
+		}
+
+		return createChanAnnouncement2(proof, info, e1, e2)
+
 	default:
 		return nil, nil, nil, fmt.Errorf("unhandled "+
 			"models.ChannelAuthProof type: %T", chanProof)
@@ -59,7 +90,7 @@ func CreateChanAnnouncement(chanProof models.ChannelAuthProof,
 func createChanAnnouncement1(chanProof *models.ChannelAuthProof1,
 	chanInfo *models.ChannelEdgeInfo1,
 	e1, e2 *models.ChannelEdgePolicy1) (*lnwire.ChannelAnnouncement1,
-	*lnwire.ChannelUpdate1, *lnwire.ChannelUpdate1, error) {
+	lnwire.ChannelUpdate, lnwire.ChannelUpdate, error) {
 
 	// First, using the parameters of the channel, along with the channel
 	// authentication chanProof, we'll create re-create the original
@@ -112,7 +143,59 @@ func createChanAnnouncement1(chanProof *models.ChannelAuthProof1,
 	// Since it's up to a node's policy as to whether they advertise the
 	// edge in a direction, we don't create an advertisement if the edge is
 	// nil.
-	var edge1Ann, edge2Ann *lnwire.ChannelUpdate1
+	var edge1Ann, edge2Ann lnwire.ChannelUpdate
+	if e1 != nil {
+		edge1Ann, err = ChannelUpdateFromEdge(chanInfo, e1)
+		if err != nil {
+			return nil, nil, nil, err
+		}
+	}
+	if e2 != nil {
+		edge2Ann, err = ChannelUpdateFromEdge(chanInfo, e2)
+		if err != nil {
+			return nil, nil, nil, err
+		}
+	}
+
+	return chanAnn, edge1Ann, edge2Ann, nil
+}
+
+func createChanAnnouncement2(chanProof *models.ChannelAuthProof2,
+	chanInfo *models.ChannelEdgeInfo2,
+	e1, e2 *models.ChannelEdgePolicy2) (lnwire.ChannelAnnouncement,
+	lnwire.ChannelUpdate, lnwire.ChannelUpdate, error) {
+
+	// First, using the parameters of the channel, along with the channel
+	// authentication chanProof, we'll create re-create the original
+	// authenticated channel announcement.
+	chanAnn := &lnwire.ChannelAnnouncement2{
+		ShortChannelID:  chanInfo.ShortChannelID,
+		NodeID1:         chanInfo.NodeID1,
+		NodeID2:         chanInfo.NodeID2,
+		ChainHash:       chanInfo.ChainHash,
+		BitcoinKey1:     chanInfo.BitcoinKey1,
+		BitcoinKey2:     chanInfo.BitcoinKey2,
+		Features:        chanInfo.Features,
+		Capacity:        chanInfo.Capacity,
+		ExtraOpaqueData: chanInfo.ExtraOpaqueData,
+	}
+
+	var err error
+	chanAnn.Signature, err = lnwire.NewSigFromSchnorrRawSignature(
+		chanProof.SchnorrSigBytes,
+	)
+	if err != nil {
+		return nil, nil, nil, err
+	}
+
+	// We'll unconditionally queue the channel's existence chanProof as it
+	// will need to be processed before either of the channel update
+	// networkMsgs.
+
+	// Since it's up to a node's policy as to whether they advertise the
+	// edge in a direction, we don't create an advertisement if the edge is
+	// nil.
+	var edge1Ann, edge2Ann lnwire.ChannelUpdate
 	if e1 != nil {
 		edge1Ann, err = ChannelUpdateFromEdge(chanInfo, e1)
 		if err != nil {
diff --git a/netann/channel_update.go b/netann/channel_update.go
index db0e97273..413314ba7 100644
--- a/netann/channel_update.go
+++ b/netann/channel_update.go
@@ -152,20 +152,27 @@ func unsignedChanPolicy1ToUpdate(chainHash chainhash.Hash,
 // ChannelUpdateFromEdge reconstructs a signed ChannelUpdate from the given
 // edge info and policy.
 func ChannelUpdateFromEdge(info models.ChannelEdgeInfo,
-	policy *models.ChannelEdgePolicy1) (*lnwire.ChannelUpdate1, error) {
+	policy models.ChannelEdgePolicy) (*lnwire.ChannelUpdate1, error) {
 
-	sig, err := policy.Signature()
-	if err != nil {
-		return nil, err
+	switch p := policy.(type) {
+	case *models.ChannelEdgePolicy1:
+		sig, err := p.Signature()
+		if err != nil {
+			return nil, err
+		}
+
+		s, err := lnwire.NewSigFromSignature(sig)
+		if err != nil {
+			return nil, err
+		}
+
+		update := unsignedChanPolicy1ToUpdate(info.GetChainHash(), p)
+		update.Signature = s
+
+		return update, nil
+
+	default:
+		return nil, fmt.Errorf("unhandled implementation of the "+
+			"models.ChanelEdgePolicy interface: %T", policy)
 	}
-
-	s, err := lnwire.NewSigFromSignature(sig)
-	if err != nil {
-		return nil, err
-	}
-
-	update := unsignedChanPolicy1ToUpdate(info.GetChainHash(), policy)
-	update.Signature = s
-
-	return update, nil
 }