diff --git a/README.md b/README.md
index ffef4bb..55d6fbd 100644
--- a/README.md
+++ b/README.md
@@ -109,7 +109,7 @@ rollappd start
 ### Install dymension relayer
 
 ```shell
-git clone https://github.com/cosmos/relayer.git --branch v2.3.1
+git clone https://github.com/dymensionxyz/go-relayer.git --branch v0.2.0-v2.3.1-relayer
 cd relayer && make install
 ```
 
diff --git a/cmd/rollappd/cmd/start.go b/cmd/rollappd/cmd/start.go
index f6c0f1f..3fef4ee 100644
--- a/cmd/rollappd/cmd/start.go
+++ b/cmd/rollappd/cmd/start.go
@@ -210,6 +210,7 @@ func startInProcess(ctx *server.Context, clientCtx client.Context, nodeConfig *d
 	if err != nil {
 		return err
 	}
+	defer db.Close()
 
 	traceWriterFile := ctx.Viper.GetString(flagTraceStore)
 	traceWriter, err := utils.OpenTraceWriter(traceWriterFile)
diff --git a/go.mod b/go.mod
index 9af57c6..e2c5f55 100644
--- a/go.mod
+++ b/go.mod
@@ -286,5 +286,5 @@ replace (
 	// replace broken goleveldb
 	github.com/syndtr/goleveldb => github.com/syndtr/goleveldb v1.0.1-0.20210819022825-2ae1ddf74ef7
 	// use cometbft
-	github.com/tendermint/tendermint => github.com/cometbft/cometbft v0.34.29
+	github.com/tendermint/tendermint => github.com/dymensionxyz/cometbft v0.34.30-0.20231213145430-f96409a9a980
 )
diff --git a/go.sum b/go.sum
index aa10038..b209e59 100644
--- a/go.sum
+++ b/go.sum
@@ -377,8 +377,6 @@ github.com/codahale/hdrhistogram v0.0.0-20161010025455-3a0bb77429bd/go.mod h1:sE
 github.com/coinbase/kryptology v1.8.0/go.mod h1:RYXOAPdzOGUe3qlSFkMGn58i3xUA8hmxYHksuq+8ciI=
 github.com/coinbase/rosetta-sdk-go v0.7.9 h1:lqllBjMnazTjIqYrOGv8h8jxjg9+hJazIGZr9ZvoCcA=
 github.com/coinbase/rosetta-sdk-go v0.7.9/go.mod h1:0/knutI7XGVqXmmH4OQD8OckFrbQ8yMsUZTG7FXCR2M=
-github.com/cometbft/cometbft v0.34.29 h1:Q4FqMevP9du2pOgryZJHpDV2eA6jg/kMYxBj9ZTY6VQ=
-github.com/cometbft/cometbft v0.34.29/go.mod h1:L9shMfbkZ8B+7JlwANEr+NZbBcn+hBpwdbeYvA5rLCw=
 github.com/cometbft/cometbft-db v0.7.0 h1:uBjbrBx4QzU0zOEnU8KxoDl18dMNgDh+zZRUE0ucsbo=
 github.com/cometbft/cometbft-db v0.7.0/go.mod h1:yiKJIm2WKrt6x8Cyxtq9YTEcIMPcEe4XPxhgX59Fzf0=
 github.com/consensys/bavard v0.1.8-0.20210406032232-f3452dc9b572/go.mod h1:Bpd0/3mZuaj6Sj+PqrmIquiOKy397AKGThQPaGzNXAQ=
@@ -483,6 +481,8 @@ github.com/dustin/go-humanize v1.0.1-0.20200219035652-afde56e7acac h1:opbrjaN/L8
 github.com/dustin/go-humanize v1.0.1-0.20200219035652-afde56e7acac/go.mod h1:HtrtbFcZ19U5GC7JDqmcUSB87Iq5E25KnS6fMYU6eOk=
 github.com/dvsekhvalnov/jose2go v1.5.0 h1:3j8ya4Z4kMCwT5nXIKFSV84YS+HdqSSO0VsTQxaLAeM=
 github.com/dvsekhvalnov/jose2go v1.5.0/go.mod h1:QsHjhyTlD/lAVqn/NSbVZmSCGeDehTB/mPZadG+mhXU=
+github.com/dymensionxyz/cometbft v0.34.30-0.20231213145430-f96409a9a980 h1:1fHVkdjkyeNP5C5xxh0jeESD1m0dc58A/7JruDGBmZc=
+github.com/dymensionxyz/cometbft v0.34.30-0.20231213145430-f96409a9a980/go.mod h1:L9shMfbkZ8B+7JlwANEr+NZbBcn+hBpwdbeYvA5rLCw=
 github.com/dymensionxyz/cosmosclient v0.4.2-beta h1:sokBefcN1tIOlUKmB8Q2E9XMJ93LueqtFThiM/kA4DI=
 github.com/dymensionxyz/cosmosclient v0.4.2-beta/go.mod h1:GQQu3ITEjWfi5ULR2B6X2i2YZNennY1yzcT5qdL4MGI=
 github.com/dymensionxyz/dymension v0.2.0-beta.0.20230607115558-745644a96ea6 h1:dnriGXmMdYEiF/8lMrj+PDlN1vyQc6zgs/ZHL67eoyI=
diff --git a/scripts/ibc/setup_ibc.sh b/scripts/ibc/setup_ibc.sh
index 69e59fc..0198592 100644
--- a/scripts/ibc/setup_ibc.sh
+++ b/scripts/ibc/setup_ibc.sh
@@ -89,7 +89,12 @@ while true; do
 done &
 UPDATE_CLIENTS_PID=$!
 
-rly transact link -t300s "$RELAYER_PATH" --src-port "$IBC_PORT" --dst-port "$IBC_PORT" --version "$IBC_VERSION"
+
+rly tx link "$RELAYER_PATH" --src-port "$IBC_PORT" --dst-port "$IBC_PORT" --version "$IBC_VERSION"
+# Channel is currently not created in the tx link since we changed the relayer to support on demand blocks
+# Which messed up with channel creation as part of tx link.
+rly tx channel "$RELAYER_PATH"
+
 
 kill $UPDATE_CLIENTS_PID > /dev/null 2>&1