diff --git a/server/asset/dcr/cache.go b/server/asset/dcr/cache.go
index 812e8df1cf..f76f9a43ca 100644
--- a/server/asset/dcr/cache.go
+++ b/server/asset/dcr/cache.go
@@ -12,10 +12,7 @@ import (
 )
 
 // The dcrBlock structure should hold a minimal amount of information about a
-// block needed to verify UTXO validity. The stake related transaction hashes
-// are stored for quick tx tree checks. More sophisticated methods such as
-// examining the pubkey scripts may be used in the future to make this structure
-// even smaller.
+// block needed to verify UTXO validity.
 type dcrBlock struct {
 	hash     chainhash.Hash
 	height   int64
diff --git a/server/asset/dcr/config.go b/server/asset/dcr/config.go
index d343aa4e09..6c9de50b41 100644
--- a/server/asset/dcr/config.go
+++ b/server/asset/dcr/config.go
@@ -32,7 +32,7 @@ var (
 // DCRConfig is passed to the constructor.
 type DCRConfig struct {
 	// Net should one of "mainnet", "testnet3", "simnet". Any other value will
-	// cause an tidyConfig error.
+	// cause a tidyConfig error.
 	Net string
 	// DcrdUser is the RPC username provided to dcrd configuration as the rpcuser
 	// parameter.
diff --git a/server/asset/dcr/dcr.go b/server/asset/dcr/dcr.go
index c7a7e452e8..88ca627f68 100644
--- a/server/asset/dcr/dcr.go
+++ b/server/asset/dcr/dcr.go
@@ -41,7 +41,7 @@ type dcrNode interface {
 	GetBlockHash(blockHeight int64) (*chainhash.Hash, error)
 }
 
-// dcrBackend is an asset backend for Decred. It has utilities for fetching UTXO
+// dcrBackend is an asset backend for Decred. It has methods for fetching UTXO
 // information and subscribing to block updates. It maintains a cache of block
 // data for quick lookups. dcrBackend implements asset.DEXAsset, so provides
 // exported methods for DEX-related blockchain info.
@@ -127,6 +127,8 @@ func (dcr *dcrBackend) UTXO(txid string, vout uint32, redeemScript []byte) (asse
 	return dcr.utxo(txHash, vout, redeemScript)
 }
 
+// Transaction is part of the asset.DEXTx interface, so includes methods for
+// checking spent utxos and validating swap contracts.
 func (dcr *dcrBackend) Transaction(txid string) (asset.DEXTx, error) {
 	txHash, err := chainhash.NewHashFromStr(txid)
 	if err != nil {
@@ -270,7 +272,8 @@ func (dcr *dcrBackend) onBlockConnected(serializedHeader []byte, _ [][]byte) {
 		log.Errorf("error decoding serialized header: %v", err)
 		return
 	}
-	dcr.anyQ <- blockHeader.BlockHash()
+	h := blockHeader.BlockHash()
+	dcr.anyQ <- &h
 }
 
 // Get the UTXO, populating the block data along the way. Only spendable UTXOs
@@ -303,8 +306,7 @@ func (dcr *dcrBackend) utxo(txHash *chainhash.Hash, vout uint32, redeemScript []
 		return nil, fmt.Errorf("error parsing utxo script addresses")
 	}
 
-	// Most supported script types are P2PKH, with or without a leading stake-tree
-	// byte, e.g. OP_SSGEN, OP_SSRTX
+	// Most supported script types are P2PKH.
 	sigScriptSize := P2PKHSigScriptSize
 	// If it's a P2SH, the size must be calculated based on other factors.
 	if scriptType.isP2SH() {
@@ -355,7 +357,10 @@ func (dcr *dcrBackend) utxo(txHash *chainhash.Hash, vout uint32, redeemScript []
 		pkScript:     pkScript,
 		redeemScript: redeemScript,
 		numSigs:      scriptAddrs.nRequired,
-		size:         uint32(sigScriptSize),
+		// The total size associated with the wire.TxIn. See
+		// (wire.TxIn).SerializeSizeWitness and
+		// and (wire.TxIn).SerializeSizePrefix
+		spendSize: uint32(sigScriptSize) + txInOverhead,
 	}, nil
 }
 
@@ -442,7 +447,7 @@ func (dcr *dcrBackend) VerifySignature(msg, pkBytes, sigBytes []byte) bool {
 }
 
 // connectNodeRPC attempts to create a new websocket connection to a dcrd node
-// with the given credentials and optional notification handlers.
+// with the given credentials and notification handlers.
 func connectNodeRPC(host, user, pass, cert string,
 	notifications *rpcclient.NotificationHandlers) (*rpcclient.Client, error) {
 
diff --git a/server/asset/dcr/dcr_test.go b/server/asset/dcr/dcr_test.go
index 5fd22e69af..0ea36aeff2 100644
--- a/server/asset/dcr/dcr_test.go
+++ b/server/asset/dcr/dcr_test.go
@@ -97,13 +97,13 @@ func TestTidyConfig(t *testing.T) {
 	}
 }
 
-// The remaining tests use the testBlockchain which, is a stub for
+// The remaining tests use the testBlockchain which is a stub for
 // rpcclient.Client. UTXOs, transactions and blocks are added to the blockchain
 // as jsonrpc types to be requested by the dcrBackend.
 //
 // General formula for testing
-// 1. Create a dcrBackend with the node field set to a dcrNode-implementing stub
-// 2. Create a fake UTXO and all of the necessary jsonrpc-type blocks and
+// 1. Create a dcrBackend with the node field set to a testNode
+// 2. Create a fake UTXO and all of the associated jsonrpc-type blocks and
 //    transactions and add the to the test blockchain.
 // 3. Verify the dcrBackend and UTXO methods are returning whatever is expected.
 // 4. Optionally add more blocks and/or transactions to the blockchain and check
@@ -124,7 +124,7 @@ func randomHash() *chainhash.Hash {
 	return hash
 }
 
-// A fake blockchain to be used for RPC calls by the dcrNode.
+// A fake "blockchain" to be used for RPC calls by the dcrNode.
 type testBlockChain struct {
 	txOuts map[string]*chainjson.GetTxOutResult
 	txRaws map[chainhash.Hash]*chainjson.TxRawResult
@@ -136,7 +136,8 @@ type testBlockChain struct {
 // node stub to request.
 var testChain testBlockChain
 
-// This must be called before using the testNode.
+// This must be called before using the testNode, and should be called
+// in-between independent tests.
 func cleanTestChain() {
 	testChain = testBlockChain{
 		txOuts: make(map[string]*chainjson.GetTxOutResult),
@@ -303,7 +304,7 @@ func genPubkey() ([]byte, []byte) {
 
 // A pay-to-script-hash pubkey script.
 func newP2PKHScript() ([]byte, []byte, []byte) {
-	script := make([]byte, 0, SwapContractSize)
+	script := make([]byte, 0, P2PKHSigScriptSize)
 	script = addHex(script, "76a914")
 	pubkey, pkHash := genPubkey()
 	script = append(script, pkHash...)
@@ -335,6 +336,7 @@ func testMsgTxRegular() *testMsgTx {
 	}
 }
 
+// Information about a swap contract.
 type testMsgTxSwap struct {
 	tx        *wire.MsgTx
 	vout      uint32
@@ -345,7 +347,7 @@ type testMsgTxSwap struct {
 // Create a swap (initialization) contract with random pubkeys and return the
 // pubkey script and addresses.
 func testSwapContract() ([]byte, dcrutil.Address) {
-	contract := make([]byte, 0, SwapContractSize)
+	contract := make([]byte, 0, 25)
 	contract = addHex(contract, "6382012088c020") // This snippet checks the size of the secret and hashes it.
 	// hashed secret
 	secretKey := randomBytes(32)
@@ -362,6 +364,7 @@ func testSwapContract() ([]byte, dcrutil.Address) {
 	return contract, receiverAddr
 }
 
+// Create a transaction with a P2SH swap output at vout 0.
 func testMsgTxSwapInit() *testMsgTxSwap {
 	msgTx := wire.NewMsgTx()
 	contract, recipient := testSwapContract()
@@ -410,6 +413,7 @@ func testMsgTxVote() *testMsgTx {
 	}
 }
 
+// Information about a transaction with a P2SH output.
 type testMsgTxP2SH struct {
 	tx       *wire.MsgTx
 	pubkeys  [][]byte
@@ -558,7 +562,7 @@ func TestUTXOs(t *testing.T) {
 	}
 	// While we're here, check the spend script size is correct.
 	scriptSize := utxo.ScriptSize()
-	if scriptSize != P2PKHSigScriptSize {
+	if scriptSize != P2PKHSigScriptSize+txInOverhead {
 		t.Fatalf("case 1 - unexpected spend script size reported. expected %d, got %d", P2PKHSigScriptSize, scriptSize)
 	}
 	// Now "mine" the transaction.
@@ -1136,5 +1140,4 @@ func TestAuxiliary(t *testing.T) {
 	if utxo.TxID() != txid {
 		t.Fatalf("utxo txid doesn't match")
 	}
-
 }
diff --git a/server/asset/dcr/live_test.go b/server/asset/dcr/live_test.go
index 786f87447c..45e60dff49 100644
--- a/server/asset/dcr/live_test.go
+++ b/server/asset/dcr/live_test.go
@@ -1,6 +1,8 @@
 // +build dcrlive
 //
-// These tests can be run by using the -tags flag.
+// Since at least one live test runs for an hour, you should run live tests
+// individually using the -run flag. All of these tests will only run with the
+// 'dcrlive' build tag, specified with the -tags flag.
 //
 // go test -v -tags dcrlive -run LiveUTXO
 // -----------------------------------
@@ -12,6 +14,11 @@
 // go test -v -tags dcrlive -run CacheAdvantage
 // -----------------------------------------
 // Check the difference between using the block cache and requesting via RPC.
+//
+// go test -v -tags dcrlive -run BlockMonitor -timeout 61m
+// ------------------------------------------
+// Monitor the block chain for a while and make sure that the block cache is
+// updating appropriately.
 
 package dcr
 
@@ -318,3 +325,37 @@ func TestCacheAdvantage(t *testing.T) {
 	}
 	t.Logf("%d cached blocks retreived in %.3f ms", numBlocks, float64(time.Since(start).Nanoseconds())/1e6)
 }
+
+// TestBlockMonitor is a live test that connects to dcrd and listens for block
+// updates, checking the state of the cache along the way.
+func TestBlockMonitor(t *testing.T) {
+	testDuration := 60 * time.Minute
+	fmt.Printf("Starting BlockMonitor test. Test will last for %d minutes\n", int(testDuration.Minutes()))
+	blockChan := dcr.BlockChannel(5)
+	expire := time.NewTimer(testDuration).C
+	lastHeight := dcr.blockCache.tipHeight()
+out:
+	for {
+		select {
+		case height := <-blockChan:
+			if height > lastHeight {
+				t.Logf("block received for height %d", height)
+			} else {
+				reorgDepth := lastHeight - height + 1
+				t.Logf("block received for block %d causes a %d block reorg", height, reorgDepth)
+			}
+			tipHeight := dcr.blockCache.tipHeight()
+			if tipHeight != height {
+				t.Fatalf("unexpected height after block notification. expected %d, received %d", height, tipHeight)
+			}
+			_, err := dcr.getMainchainDcrBlock(height)
+			if err != nil {
+				t.Fatalf("error getting newly connected block at height %d", height)
+			}
+		case <-dcr.ctx.Done():
+			break out
+		case <-expire:
+			break out
+		}
+	}
+}
diff --git a/server/asset/dcr/script.go b/server/asset/dcr/script.go
index a401abbb31..8ac0ea52e3 100644
--- a/server/asset/dcr/script.go
+++ b/server/asset/dcr/script.go
@@ -56,6 +56,8 @@ const (
 	P2PKHSigScriptSize = 1 + 73 + 1 + 33
 	// All pubkey scripts are assumed to be version 0.
 	currentScriptVersion = 0
+	// Overhead for a wire.TxIn with a script length < 254.
+	txInOverhead = 58
 )
 
 // parseScriptType creates a dcrScriptType bitmap for the script type. A script
diff --git a/server/asset/dcr/tx.go b/server/asset/dcr/tx.go
index 9ed16e3013..39ee538e27 100644
--- a/server/asset/dcr/tx.go
+++ b/server/asset/dcr/tx.go
@@ -103,7 +103,7 @@ func (tx *Tx) Confirmations() (int64, error) {
 			mainchainBlock = nil
 		} else {
 			mainchainBlock, found = tx.dcr.blockCache.atHeight(uint32(tx.height))
-			if !found {
+			if !found || mainchainBlock.hash != tx.blockHash {
 				return -1, fmt.Errorf("new block not found for utxo moved from orphaned block")
 			}
 		}
diff --git a/server/asset/dcr/utxo.go b/server/asset/dcr/utxo.go
index c38fe198d5..b5539dde6f 100644
--- a/server/asset/dcr/utxo.go
+++ b/server/asset/dcr/utxo.go
@@ -27,7 +27,7 @@ type UTXO struct {
 	pkScript     []byte
 	redeemScript []byte
 	numSigs      int
-	size         uint32
+	spendSize    uint32
 }
 
 // Check that UTXO satisfies the asset.UTXO interface
@@ -156,7 +156,7 @@ func countMatches(pubkeys [][]byte, addrs []dcrutil.Address, hasher func([]byte)
 // ScriptSize returns the maximum spend script size of the UTXO, in bytes.
 // This is a method of the asset.UTXO interface.
 func (utxo *UTXO) ScriptSize() uint32 {
-	return utxo.size
+	return utxo.spendSize
 }
 
 // TxHash is the transaction hash. TxHash is a method of the asset.UTXO