diff --git a/README.md b/README.md
index 40e6b32..07fbf27 100644
--- a/README.md
+++ b/README.md
@@ -1,20 +1,34 @@
-```
+# MutinyNet Faucet API
+
+1. Copy `.env.sample` to `.env.local` and fill it out with bitcoind and lnd connection info
+2. Run `cargo build && cargo start`
+
+## Endpoint examples
+
+```sh
 curl -X POST \
   http://localhost:3001/api/onchain \
   -H 'Content-Type: application/json' \
   -d '{"sats":10000,"address":"bcrt1..."}'
 ```
 
-```
+```sh
 curl -X POST \
   http://localhost:3001/api/lightning \
   -H 'Content-Type: application/json' \
   -d '{"bolt11": "..."}'
 ```
 
-```
+```sh
 curl -X POST \
   http://localhost:3001/api/bolt11 \
   -H 'Content-Type: application/json' \
   -d '{"amount_sats": 1234}'
-```
\ No newline at end of file
+```
+
+```sh
+curl -X POST \
+  http://localhost:3001/api/channel \
+  -H 'Content-Type: application/json' \
+  -d '{"capacity": 2468,"push_amount": 1234,"pubkey":"023...","host":"127.0.0.1:9735"}'
+```
diff --git a/src/channel.rs b/src/channel.rs
new file mode 100644
index 0000000..63351cd
--- /dev/null
+++ b/src/channel.rs
@@ -0,0 +1,80 @@
+use serde::{Deserialize, Serialize};
+
+use std::sync::{Arc, Mutex};
+use tonic_openssl_lnd::lnrpc::{self, channel_point};
+
+use crate::{AppState, MAX_SEND_AMOUNT};
+
+#[derive(Clone, Deserialize)]
+pub struct ChannelRequest {
+    capacity: i64,
+    push_amount: i64,
+    pubkey: String,
+    host: Option<String>,
+}
+
+#[derive(Clone, Serialize)]
+pub struct ChannelResponse {
+    pub txid: String,
+}
+
+pub async fn open_channel(
+    state: Arc<Mutex<AppState>>,
+    payload: ChannelRequest,
+) -> anyhow::Result<String> {
+    if payload.capacity > MAX_SEND_AMOUNT.try_into().unwrap() {
+        anyhow::bail!("max capacity is 10,000,000");
+    }
+    if payload.push_amount < 0 {
+        anyhow::bail!("push_amount must be positive");
+    }
+    if payload.push_amount > payload.capacity {
+        anyhow::bail!("push_amount must be less than or equal to capacity");
+    }
+
+    let node_pubkey_result = hex::decode(payload.pubkey.clone());
+    let node_pubkey = match node_pubkey_result {
+        Ok(pubkey) => pubkey,
+        Err(e) => anyhow::bail!("invalid pubkey: {}", e),
+    };
+
+    let channel_point = {
+        let mut lightning_client = state
+            .clone()
+            .lock()
+            .map_err(|_| anyhow::anyhow!("failed to get lock"))?
+            .lightning_client
+            .clone();
+
+        if let Some(host) = payload.host {
+            lightning_client
+                .connect_peer(lnrpc::ConnectPeerRequest {
+                    addr: Some(lnrpc::LightningAddress {
+                        pubkey: payload.pubkey.clone(),
+                        host,
+                    }),
+                    ..Default::default()
+                })
+                .await
+                .ok();
+        }
+
+        lightning_client
+            .open_channel_sync(lnrpc::OpenChannelRequest {
+                node_pubkey,
+                local_funding_amount: payload.capacity,
+                push_sat: payload.push_amount,
+                ..Default::default()
+            })
+            .await?
+            .into_inner()
+    };
+
+    let txid = match channel_point.funding_txid {
+        Some(channel_point::FundingTxid::FundingTxidBytes(bytes)) => hex::encode(bytes),
+        Some(channel_point::FundingTxid::FundingTxidStr(string)) => string,
+        None => anyhow::bail!("failed to open channel"),
+    };
+
+    Ok(txid)
+}
diff --git a/src/main.rs b/src/main.rs
index 39770d1..29fb9bf 100644
--- a/src/main.rs
+++ b/src/main.rs
@@ -16,11 +16,13 @@ use tonic_openssl_lnd::LndLightningClient;
 use tower_http::cors::{Any, CorsLayer};
 
 mod bolt11;
+mod channel;
 mod lightning;
 mod onchain;
 mod setup;
 
 use bolt11::{request_bolt11, Bolt11Request, Bolt11Response};
+use channel::{open_channel, ChannelRequest, ChannelResponse};
 use lightning::{pay_lightning, LightningRequest, LightningResponse};
 use onchain::{pay_onchain, OnchainRequest, OnchainResponse};
 use setup::setup;
@@ -57,6 +59,7 @@ async fn main() -> anyhow::Result<()> {
         .route("/api/onchain", post(onchain_handler))
         .route("/api/lightning", post(lightning_handler))
         .route("/api/bolt11", post(bolt11_handler))
+        .route("/api/channel", post(channel_handler))
         .with_state(state)
         .layer(
             CorsLayer::new()
@@ -105,6 +108,16 @@ async fn bolt11_handler(
     Ok(Json(Bolt11Response { bolt11 }))
 }
 
+#[axum::debug_handler]
+async fn channel_handler(
+    State(state): State<SharedState>,
+    Json(payload): Json<ChannelRequest>,
+) -> Result<Json<ChannelResponse>, AppError> {
+    let txid = open_channel(state.clone(), payload.clone()).await?;
+
+    Ok(Json(ChannelResponse { txid }))
+}
+
 // Make our own error that wraps `anyhow::Error`.
 struct AppError(anyhow::Error);
 
diff --git a/src/onchain.rs b/src/onchain.rs
index 76f9402..17522c8 100644
--- a/src/onchain.rs
+++ b/src/onchain.rs
@@ -24,7 +24,7 @@ pub async fn pay_onchain(
     payload: OnchainRequest,
 ) -> anyhow::Result<String> {
     if payload.sats > MAX_SEND_AMOUNT {
-        anyhow::bail!("max amount is 1,000,000");
+        anyhow::bail!("max amount is 10,000,000");
     }
 
     let txid = {