diff --git a/README.md b/README.md
index 4fc8cd9..fd0a5ad 100644
--- a/README.md
+++ b/README.md
@@ -105,13 +105,17 @@ After you have lnd and the Loop client installed, you can execute a Loop swap.
 The Loop client needs its own short-lived daemon which will deal with the swaps
 in progress.
 
-To run this:
+Command to start `loopd`::
 
 ```
-`loopd`
+loopd
 
 // Or if you want to do everything in the same terminal and background loopd
-`loopd &`
+loopd &
+
+// For testnet mode, you'll need to specify the network as mainnet is the
+default:
+loopd --network=testnet
 ```
 
 By default `loopd` attempts to connect to the lnd instance running on
diff --git a/cmd/loopd/config.go b/cmd/loopd/config.go
index 53b82f1..cc9ba91 100644
--- a/cmd/loopd/config.go
+++ b/cmd/loopd/config.go
@@ -21,9 +21,14 @@ type config struct {
 	View viewParameters `command:"view" alias:"v" description:"View all swaps in the database. This command can only be executed when loopd is not running."`
 }
 
+const (
+	mainnetServer = "swap.lightning.today:11009"
+	testnetServer = "test.swap.lightning.today:11009"
+)
+
 var defaultConfig = config{
 	Network:    "mainnet",
-	SwapServer: "swap.lightning.today:11009",
+	SwapServer: mainnetServer,
 	RPCListen:  "localhost:11010",
 	RESTListen: "localhost:8081",
 	Insecure:   false,
diff --git a/cmd/loopd/daemon.go b/cmd/loopd/daemon.go
index dd5875d..0df40ea 100644
--- a/cmd/loopd/daemon.go
+++ b/cmd/loopd/daemon.go
@@ -26,6 +26,12 @@ func daemon(config *config) error {
 	}
 	defer lnd.Close()
 
+	// If the user is targeting the testnet network, then we'll point
+	// towards the testnet swap server rather than the mainnet endpoint.
+	if config.Network == "testnet" {
+		config.SwapServer = testnetServer
+	}
+
 	swapClient, cleanup, err := getClient(
 		config.Network, config.SwapServer, config.Insecure, &lnd.LndServices,
 	)