diff --git a/lib/net/bip151.js b/lib/net/bip151.js
index 8d10a2be..da6a2c69 100644
--- a/lib/net/bip151.js
+++ b/lib/net/bip151.js
@@ -20,6 +20,8 @@ var assert = utils.assert;
 var constants = bcoin.constants;
 var chachapoly = require('../crypto/chachapoly');
 var packets = require('./packets');
+var EncinitPacket = packets.EncinitPacket;
+var EncackPacket = packets.EncackPacket;
 
 /*
  * Constants
@@ -29,13 +31,13 @@ var HKDF_SALT = new Buffer('bitcoinecdh', 'ascii');
 var INFO_KEY1 = new Buffer('BitcoinK1', 'ascii');
 var INFO_KEY2 = new Buffer('BitcoinK2', 'ascii');
 var INFO_SID = new Buffer('BitcoinSessionID', 'ascii');
+var HIGH_WATER_MARK = 1024 * (1 << 20);
 
 /**
  * Represents a BIP151 input or output stream.
  * @exports BIP151Stream
  * @constructor
  * @param {Number} cipher
- * @param {Buffer?} key
  * @property {Buffer} publicKey
  * @property {Buffer} privateKey
  * @property {Number} cipher
@@ -47,20 +49,17 @@ var INFO_SID = new Buffer('BitcoinSessionID', 'ascii');
  * @property {AEAD} aead
  * @property {Buffer} tag
  * @property {Number} seq
- * @property {Number} highWaterMark
  * @property {Number} processed
  * @property {Number} lastKey
  */
 
-function BIP151Stream(cipher, key) {
+function BIP151Stream(cipher) {
   if (!(this instanceof BIP151Stream))
-    return new BIP151Stream(cipher, key);
+    return new BIP151Stream(cipher);
 
-  EventEmitter.call(this);
-
-  this.publicKey = null;
-  this.privateKey = key || bcoin.ec.generatePrivateKey();
   this.cipher = cipher || 0;
+  this.privateKey = bcoin.ec.generatePrivateKey();
+  this.publicKey = null;
   this.secret = null;
   this.prk = null;
   this.k1 = null;
@@ -76,18 +75,10 @@ function BIP151Stream(cipher, key) {
   this.iv = new Buffer(8);
   this.iv.fill(0);
 
-  this.highWaterMark = 1024 * (1 << 20);
   this.processed = 0;
   this.lastRekey = 0;
-
-  this.pending = [];
-  this.total = 0;
-  this.waiting = 4;
-  this.hasSize = false;
 }
 
-utils.inherits(BIP151Stream, EventEmitter);
-
 /**
  * Initialize the stream with peer's public key.
  * Computes ecdh secret and chacha keys.
@@ -122,23 +113,26 @@ BIP151Stream.prototype.init = function init(publicKey) {
  * Add buffer size to `processed`,
  * check whether we need to rekey.
  * @param {Buffer} data
+ * @returns {Boolean}
  */
 
-BIP151Stream.prototype.maybeRekey = function maybeRekey(data) {
+BIP151Stream.prototype.shouldRekey = function shouldRekey(data) {
   var now = utils.now();
 
   this.processed += data.length;
 
   if (now >= this.lastRekey + 10
-      || this.processed >= this.highWaterMark) {
+      || this.processed >= HIGH_WATER_MARK) {
     this.lastRekey = now;
     this.processed = 0;
-    this.emit('rekey');
+    return true;
   }
+
+  return false;
 };
 
 /**
- * Generate new chacha keys with `key = HASH256(key)`.
+ * Generate new chacha keys with `key = HASH256(sid | key)`.
  * This will reinitialize the state of both ciphers.
  */
 
@@ -200,7 +194,7 @@ BIP151Stream.prototype.update = function update() {
 
 /**
  * Get public key tied to private key
- * (not the same as BIP151Stream#privateKey).
+ * (not the same as BIP151Stream#publicKey).
  * @returns {Buffer}
  */
 
@@ -281,170 +275,6 @@ BIP151Stream.prototype.verify = function verify(tag) {
   return chachapoly.Poly1305.verify(this.tag, tag);
 };
 
-/**
- * Parse ciphertext data and split into chunks.
- * Potentially emits a `packet` event.
- * @param {Buffer} data
- */
-
-BIP151Stream.prototype.feed = function feed(data) {
-  var chunk;
-
-  this.total += data.length;
-  this.pending.push(data);
-
-  while (this.total >= this.waiting) {
-    chunk = this.read(this.waiting);
-    this.parse(chunk);
-  }
-};
-
-/**
- * Read and consume a number of bytes
- * from the buffered stream.
- * @param {Number} size
- * @returns {Buffer}
- */
-
-BIP151Stream.prototype.read = function read(size) {
-  var pending, chunk, off, len;
-
-  assert(this.total >= size, 'Reading too much.');
-
-  if (size === 0)
-    return new Buffer(0);
-
-  pending = this.pending[0];
-
-  if (pending.length > size) {
-    chunk = pending.slice(0, size);
-    this.pending[0] = pending.slice(size);
-    this.total -= chunk.length;
-    return chunk;
-  }
-
-  if (pending.length === size) {
-    chunk = this.pending.shift();
-    this.total -= chunk.length;
-    return chunk;
-  }
-
-  chunk = new Buffer(size);
-  off = 0;
-  len = 0;
-
-  while (off < chunk.length) {
-    pending = this.pending[0];
-    len = pending.copy(chunk, off);
-    if (len === pending.length)
-      this.pending.shift();
-    else
-      this.pending[0] = pending.slice(len);
-    off += len;
-  }
-
-  assert.equal(off, chunk.length);
-
-  this.total -= chunk.length;
-
-  return chunk;
-};
-
-/**
- * Parse a ciphertext payload chunk.
- * Potentially emits a `packet` event.
- * @param {Buffer} data
- */
-
-BIP151Stream.prototype.parse = function parse(data) {
-  var size, payload, tag, p, cmd, body;
-
-  if (!this.hasSize) {
-    size = this.decryptSize(data);
-
-    // Allow 3 batched packets of max message size (12mb).
-    // Not technically standard, but this protects us
-    // from buffering tons of data due to either an
-    // potential dos'er or a cipher state mismatch.
-    // Note that 6 is the minimum size:
-    // cmd=varint(1) string(1) length(4) data(0)
-    if (size < 6 || size > constants.MAX_MESSAGE * 3) {
-      this.waiting = 4;
-      this.emit('error', new Error('Bad packet size.'));
-      return;
-    }
-
-    this.hasSize = true;
-    this.waiting = size + 16;
-
-    return;
-  }
-
-  payload = data.slice(0, this.waiting - 16);
-  tag = data.slice(this.waiting - 16, this.waiting);
-
-  this.hasSize = false;
-  this.waiting = 4;
-
-  // Authenticate payload before decrypting.
-  // This ensures the cipher state isn't altered
-  // if the payload integrity has been compromised.
-  this.auth(payload);
-  this.finish();
-
-  if (!this.verify(tag)) {
-    this.sequence();
-    this.emit('error', new Error('Bad tag.'));
-    return;
-  }
-
-  this.decrypt(payload);
-  this.sequence();
-
-  p = bcoin.reader(payload);
-
-  while (p.left()) {
-    try {
-      cmd = p.readVarString('ascii');
-      body = p.readBytes(p.readU32());
-    } catch (e) {
-      this.emit('error', e);
-      return;
-    }
-
-    this.emit('packet', cmd, body);
-  }
-};
-
-/**
- * Frame and encrypt a plaintext payload.
- * @param {String} cmd
- * @param {Buffer} body
- * @returns {Buffer} Ciphertext payload
- */
-
-BIP151Stream.prototype.packet = function packet(cmd, body) {
-  var p = bcoin.writer();
-  var payload, packet;
-
-  p.writeVarString(cmd, 'ascii');
-  p.writeU32(body.length);
-  p.writeBytes(body);
-
-  payload = p.render();
-
-  packet = new Buffer(4 + payload.length + 16);
-
-  this.maybeRekey(packet);
-
-  this.encryptSize(payload.length).copy(packet, 0);
-  this.encrypt(payload).copy(packet, 4);
-  this.finish().copy(packet, 4 + payload.length);
-  this.sequence();
-
-  return packet;
-};
-
 /**
  * Represents a BIP151 input and output stream.
  * Holds state for peer communication.
@@ -481,34 +311,16 @@ function BIP151(cipher) {
   this.completed = false;
   this.handshake = false;
 
-  this.bip150 = null;
+  this.pending = [];
+  this.total = 0;
+  this.waiting = 4;
+  this.hasSize = false;
 
-  this._init();
+  this.bip150 = null;
 }
 
 utils.inherits(BIP151, EventEmitter);
 
-/**
- * Initialize BIP151. Bind to events.
- * @private
- */
-
-BIP151.prototype._init = function _init() {
-  var self = this;
-
-  this.output.on('rekey', function() {
-    self.emit('rekey');
-    if (self.bip150 && self.bip150.auth)
-      self.bip150.rekeyOutput();
-    else
-      self.output.rekey();
-  });
-
-  this.input.on('packet', function(cmd, body) {
-    self.emit('packet', cmd, body);
-  });
-};
-
 /**
  * Test whether handshake has completed.
  * @returns {Boolean}
@@ -530,7 +342,7 @@ BIP151.prototype.isReady = function isReady() {
 BIP151.prototype.toEncinit = function toEncinit() {
   assert(!this.initSent, 'Cannot init twice.');
   this.initSent = true;
-  return new packets.EncinitPacket(this.input.getPublicKey(), this.input.cipher);
+  return new EncinitPacket(this.input.getPublicKey(), this.input.cipher);
 };
 
 /**
@@ -549,7 +361,7 @@ BIP151.prototype.toEncack = function toEncack() {
     this.emit('handshake');
   }
 
-  return new packets.EncackPacket(this.output.getPublicKey());
+  return new EncackPacket(this.output.getPublicKey());
 };
 
 /**
@@ -561,7 +373,7 @@ BIP151.prototype.toEncack = function toEncack() {
 
 BIP151.prototype.toRekey = function toRekey() {
   assert(this.handshake, 'Cannot rekey before handshake.');
-  return new packets.EncackPacket(constants.ZERO_KEY);
+  return new EncackPacket(constants.ZERO_KEY);
 };
 
 /**
@@ -586,10 +398,11 @@ BIP151.prototype.encack = function encack(publicKey) {
 
   if (utils.equal(publicKey, constants.ZERO_KEY)) {
     assert(this.handshake, 'No initialization before rekey.');
-    if (this.bip150 && this.bip150.auth)
+    if (this.bip150 && this.bip150.auth) {
       this.bip150.rekeyInput();
-    else
-      this.input.rekey();
+      return;
+    }
+    this.input.rekey();
     return;
   }
 
@@ -657,14 +470,23 @@ BIP151.prototype.destroy = function destroy() {
 };
 
 /**
- * Feed ciphertext payload chunk
- * to the input stream. Potentially
- * emits a `packet` event.
+ * Add buffer size to `processed`,
+ * check whether we need to rekey.
  * @param {Buffer} data
  */
 
-BIP151.prototype.feed = function feed(data) {
-  return this.input.feed(data);
+BIP151.prototype.maybeRekey = function maybeRekey(data) {
+  if (!this.output.shouldRekey(data))
+    return;
+
+  this.emit('rekey');
+
+  if (this.bip150 && this.bip150.auth) {
+    this.bip150.rekeyOutput();
+    return;
+  }
+
+  this.output.rekey();
 };
 
 /**
@@ -675,7 +497,161 @@ BIP151.prototype.feed = function feed(data) {
  */
 
 BIP151.prototype.packet = function packet(cmd, body) {
-  return this.output.packet(cmd, body);
+  var p = bcoin.writer();
+  var payload, packet;
+
+  p.writeVarString(cmd, 'ascii');
+  p.writeU32(body.length);
+  p.writeBytes(body);
+
+  payload = p.render();
+
+  packet = new Buffer(4 + payload.length + 16);
+
+  this.maybeRekey(packet);
+
+  this.output.encryptSize(payload.length).copy(packet, 0);
+  this.output.encrypt(payload).copy(packet, 4);
+  this.output.finish().copy(packet, 4 + payload.length);
+  this.output.sequence();
+
+  return packet;
+};
+
+/**
+ * Feed ciphertext payload chunk
+ * to the input stream. Potentially
+ * emits a `packet` event.
+ * @param {Buffer} data
+ */
+
+BIP151.prototype.feed = function feed(data) {
+  var chunk;
+
+  this.total += data.length;
+  this.pending.push(data);
+
+  while (this.total >= this.waiting) {
+    chunk = this.read(this.waiting);
+    this.parse(chunk);
+  }
+};
+
+/**
+ * Read and consume a number of bytes
+ * from the buffered stream.
+ * @param {Number} size
+ * @returns {Buffer}
+ */
+
+BIP151.prototype.read = function read(size) {
+  var pending, chunk, off, len;
+
+  assert(this.total >= size, 'Reading too much.');
+
+  if (size === 0)
+    return new Buffer(0);
+
+  pending = this.pending[0];
+
+  if (pending.length > size) {
+    chunk = pending.slice(0, size);
+    this.pending[0] = pending.slice(size);
+    this.total -= chunk.length;
+    return chunk;
+  }
+
+  if (pending.length === size) {
+    chunk = this.pending.shift();
+    this.total -= chunk.length;
+    return chunk;
+  }
+
+  chunk = new Buffer(size);
+  off = 0;
+  len = 0;
+
+  while (off < chunk.length) {
+    pending = this.pending[0];
+    len = pending.copy(chunk, off);
+    if (len === pending.length)
+      this.pending.shift();
+    else
+      this.pending[0] = pending.slice(len);
+    off += len;
+  }
+
+  assert.equal(off, chunk.length);
+
+  this.total -= chunk.length;
+
+  return chunk;
+};
+
+/**
+ * Parse a ciphertext payload chunk.
+ * Potentially emits a `packet` event.
+ * @param {Buffer} data
+ */
+
+BIP151.prototype.parse = function parse(data) {
+  var size, payload, tag, p, cmd, body;
+
+  if (!this.hasSize) {
+    size = this.input.decryptSize(data);
+
+    // Allow 3 batched packets of max message size (12mb).
+    // Not technically standard, but this protects us
+    // from buffering tons of data due to either an
+    // potential dos'er or a cipher state mismatch.
+    // Note that 6 is the minimum size:
+    // varinti-clen(1) string-cmd(1) uint32-size(4) data(0)
+    if (size < 6 || size > constants.MAX_MESSAGE * 3) {
+      this.waiting = 4;
+      this.emit('error', new Error('Bad packet size.'));
+      return;
+    }
+
+    this.hasSize = true;
+    this.waiting = size + 16;
+
+    return;
+  }
+
+  payload = data.slice(0, this.waiting - 16);
+  tag = data.slice(this.waiting - 16, this.waiting);
+
+  this.hasSize = false;
+  this.waiting = 4;
+
+  // Authenticate payload before decrypting.
+  // This ensures the cipher state isn't altered
+  // if the payload integrity has been compromised.
+  this.input.auth(payload);
+  this.input.finish();
+
+  if (!this.input.verify(tag)) {
+    this.input.sequence();
+    this.emit('error', new Error('Bad tag.'));
+    return;
+  }
+
+  this.input.decrypt(payload);
+  this.input.sequence();
+
+  p = bcoin.reader(payload);
+
+  while (p.left()) {
+    try {
+      cmd = p.readVarString('ascii');
+      body = p.readBytes(p.readU32());
+    } catch (e) {
+      this.emit('error', e);
+      return;
+    }
+
+    this.emit('packet', cmd, body);
+  }
 };
 
 /*
diff --git a/test/bip150-test.js b/test/bip150-test.js
index e428ba13..151806cf 100644
--- a/test/bip150-test.js
+++ b/test/bip150-test.js
@@ -127,7 +127,7 @@ describe('BIP150', function() {
     });
 
     // Force a rekey after 1gb processed.
-    client.output.maybeRekey({ length: 1024 * (1 << 20) });
+    client.maybeRekey({ length: 1024 * (1 << 20) });
 
     assert(rekeyed);
 
diff --git a/test/bip151-test.js b/test/bip151-test.js
index 5557bb3a..39ac2746 100644
--- a/test/bip151-test.js
+++ b/test/bip151-test.js
@@ -105,7 +105,7 @@ describe('BIP151', function() {
     });
 
     // Force a rekey after 1gb processed.
-    client.output.maybeRekey({ length: 1024 * (1 << 20) });
+    client.maybeRekey({ length: 1024 * (1 << 20) });
 
     assert(rekeyed);