diff --git a/src/commands/mod.rs b/src/commands/mod.rs
index f4c56fc8..1ecef7be 100644
--- a/src/commands/mod.rs
+++ b/src/commands/mod.rs
@@ -31,7 +31,7 @@ impl DaemonControl {
         let mut db_conn = self.db.connection();
         let index = db_conn.derivation_index();
         // TODO: handle should we wrap around instead of failing?
-        db_conn.update_derivation_index(index.increment().expect("TODO: handle wraparound"));
+        db_conn.increment_derivation_index(&self.secp);
         let address = self
             .config
             .main_descriptor
diff --git a/src/database/mod.rs b/src/database/mod.rs
index f395c364..6fd27ee4 100644
--- a/src/database/mod.rs
+++ b/src/database/mod.rs
@@ -13,7 +13,7 @@ use crate::{
 
 use std::{collections::HashMap, sync};
 
-use miniscript::bitcoin::{self, util::bip32};
+use miniscript::bitcoin::{self, secp256k1, util::bip32};
 
 pub trait DatabaseInterface: Send {
     fn connection(&self) -> Box<dyn DatabaseConnection>;
@@ -44,7 +44,7 @@ pub trait DatabaseConnection {
 
     fn derivation_index(&mut self) -> bip32::ChildNumber;
 
-    fn update_derivation_index(&mut self, index: bip32::ChildNumber);
+    fn increment_derivation_index(&mut self, secp: &secp256k1::Secp256k1<secp256k1::VerifyOnly>);
 
     /// Get all UTxOs.
     fn unspent_coins(&mut self) -> HashMap<bitcoin::OutPoint, Coin>;
@@ -83,8 +83,8 @@ impl DatabaseConnection for SqliteConn {
         self.db_wallet().deposit_derivation_index
     }
 
-    fn update_derivation_index(&mut self, index: bip32::ChildNumber) {
-        self.update_derivation_index(index)
+    fn increment_derivation_index(&mut self, secp: &secp256k1::Secp256k1<secp256k1::VerifyOnly>) {
+        self.increment_derivation_index(secp)
     }
 
     fn unspent_coins(&mut self) -> HashMap<bitcoin::OutPoint, Coin> {
diff --git a/src/database/sqlite/mod.rs b/src/database/sqlite/mod.rs
index 1e4a70fd..91315ba5 100644
--- a/src/database/sqlite/mod.rs
+++ b/src/database/sqlite/mod.rs
@@ -14,7 +14,7 @@ use crate::{
     database::{
         sqlite::{
             schema::{DbAddress, DbCoin, DbTip, DbWallet},
-            utils::{create_fresh_db, db_exec, db_query},
+            utils::{create_fresh_db, db_exec, db_query, db_tx_query, LOOK_AHEAD_LIMIT},
         },
         Coin,
     },
@@ -23,8 +23,8 @@ use crate::{
 use std::{convert::TryInto, fmt, io, path};
 
 use miniscript::{
-    bitcoin::{self, secp256k1, util::bip32},
-    Descriptor, DescriptorPublicKey,
+    bitcoin::{self, secp256k1},
+    Descriptor, DescriptorPublicKey, DescriptorTrait, TranslatePk2,
 };
 
 const DB_VERSION: i64 = 0;
@@ -207,15 +207,47 @@ impl SqliteConn {
         .expect("Database must be available")
     }
 
-    /// Update the deposit derivation index.
-    pub fn update_derivation_index(&mut self, index: bip32::ChildNumber) {
-        let new_index: u32 = index.into();
+    pub fn increment_derivation_index(
+        &mut self,
+        secp: &secp256k1::Secp256k1<secp256k1::VerifyOnly>,
+    ) {
+        let network = self.db_tip().network;
+
         db_exec(&mut self.conn, |db_tx| {
+            let db_wallet: DbWallet = db_tx_query(
+                &db_tx,
+                "SELECT * FROM wallets",
+                rusqlite::params![],
+                |row| row.try_into(),
+            )
+            .expect("Db must not fail")
+            .pop()
+            .expect("There is always a row in the wallet table");
+            let next_index: u32 = db_wallet
+                .deposit_derivation_index
+                .increment()
+                .expect("Must not get in hardened territory")
+                .into();
             // NOTE: should be updated if we ever have multi-wallet support
+            db_tx.execute(
+                "UPDATE wallets SET deposit_derivation_index = (?1)",
+                rusqlite::params![next_index],
+            )?;
+
+            // Update the address to derivation index mapping.
+            // TODO: have this as a helper in descriptors.rs
+            let next_la_index = next_index + LOOK_AHEAD_LIMIT - 1;
+            let next_la_address = db_wallet
+                .main_descriptor
+                .derive(next_la_index)
+                .translate_pk2(|xpk| xpk.derive_public_key(secp))
+                .expect("All pubkeys were derived, no wildcard.")
+                .address(network)
+                .expect("It's a wsh() descriptor");
             db_tx
                 .execute(
-                    "UPDATE wallets SET deposit_derivation_index = (?1)",
-                    rusqlite::params![new_index],
+                    "INSERT INTO addresses (address, derivation_index) VALUES (?1, ?2)",
+                    rusqlite::params![next_la_address.to_string(), next_la_index],
                 )
                 .map(|_| ())
         })
@@ -311,7 +343,7 @@ mod tests {
     use crate::testutils::*;
     use std::{collections::HashSet, fs, path, str::FromStr};
 
-    use bitcoin::hashes::Hash;
+    use bitcoin::{hashes::Hash, util::bip32};
     use miniscript::{DescriptorTrait, TranslatePk2};
 
     fn dummy_options() -> FreshDbOptions {
@@ -518,6 +550,11 @@ mod tests {
                 .address(options.bitcoind_network)
                 .expect("Always a P2WSH address");
             assert!(conn.db_address(&addr).is_none());
+
+            // But if we increment the deposit derivation index, the 200th one will be there.
+            conn.increment_derivation_index(&secp);
+            let db_addr = conn.db_address(&addr).unwrap();
+            assert_eq!(db_addr.derivation_index, 200.into());
         }
 
         fs::remove_dir_all(&tmp_dir).unwrap();
diff --git a/src/database/sqlite/utils.rs b/src/database/sqlite/utils.rs
index c42bdb76..e744ce4b 100644
--- a/src/database/sqlite/utils.rs
+++ b/src/database/sqlite/utils.rs
@@ -4,7 +4,7 @@ use std::{convert::TryInto, fs, path, time};
 
 use miniscript::{bitcoin::secp256k1, DescriptorTrait, TranslatePk2};
 
-const LOOK_AHEAD_LIMIT: u32 = 200;
+pub const LOOK_AHEAD_LIMIT: u32 = 200;
 
 /// Perform a set of modifications to the database inside a single transaction
 pub fn db_exec<F>(conn: &mut rusqlite::Connection, modifications: F) -> Result<(), rusqlite::Error>
@@ -16,6 +16,27 @@ where
     tx.commit()
 }
 
+/// Internal helper for queries boilerplate
+pub fn db_tx_query<P, F, T>(
+    tx: &rusqlite::Transaction,
+    stmt_str: &str,
+    params: P,
+    f: F,
+) -> Result<Vec<T>, rusqlite::Error>
+where
+    P: IntoIterator + rusqlite::Params,
+    P::Item: rusqlite::ToSql,
+    F: FnMut(&rusqlite::Row<'_>) -> rusqlite::Result<T>,
+{
+    // rustc says 'borrowed value does not live long enough'
+    let x = tx
+        .prepare(stmt_str)?
+        .query_map(params, f)?
+        .collect::<rusqlite::Result<Vec<T>>>();
+
+    x
+}
+
 /// Internal helper for queries boilerplate
 pub fn db_query<P, F, T>(
     conn: &mut rusqlite::Connection,
diff --git a/src/testutils.rs b/src/testutils.rs
index 8df893f4..989cafc8 100644
--- a/src/testutils.rs
+++ b/src/testutils.rs
@@ -8,7 +8,7 @@ use crate::{
 use std::{collections::HashMap, env, fs, io, path, process, str::FromStr, sync, thread, time};
 
 use miniscript::{
-    bitcoin::{self, util::bip32},
+    bitcoin::{self, secp256k1, util::bip32},
     descriptor,
 };
 
@@ -97,8 +97,9 @@ impl DatabaseConnection for DummyDbConn {
         self.db.read().unwrap().curr_index
     }
 
-    fn update_derivation_index(&mut self, index: bip32::ChildNumber) {
-        self.db.write().unwrap().curr_index = index;
+    fn increment_derivation_index(&mut self, _: &secp256k1::Secp256k1<secp256k1::VerifyOnly>) {
+        let next_index = self.db.write().unwrap().curr_index.increment().unwrap();
+        self.db.write().unwrap().curr_index = next_index;
     }
 
     fn unspent_coins(&mut self) -> HashMap<bitcoin::OutPoint, Coin> {