diff --git a/Cargo.toml b/Cargo.toml
index 35d0d82..d5a205a 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -25,7 +25,7 @@ tokio = { version = "1.43.0", default-features = false, features = ["signal", "m
 tracing = { version = "0.1.41", default-features = false, features = ["attributes"]}
 tracing-subscriber = { version = "0.3.19", default-features = false, features = ["env-filter", "fmt", "json", "time", "ansi"] }
 url = { version = "2.5.4", default-features = false }
-lru = {version = "0.16.0", default-features = false }
+lru = { version = "0.16.0", default-features = false }
 
 [dev-dependencies]
 mockito = { version = "1.7.0", default-features = false }
diff --git a/rust-toolchain.toml b/rust-toolchain.toml
index 5851fa6..037bbfe 100644
--- a/rust-toolchain.toml
+++ b/rust-toolchain.toml
@@ -1,5 +1,5 @@
 [toolchain]
-channel = "1.88.0"
+channel = "1.94.1"
 components = ["rustfmt", "clippy"]
 targets = ["x86_64-unknown-linux-gnu", "x86_64-unknown-linux-musl"]
 profile = "minimal"
diff --git a/src/config/default.toml b/src/config/default.toml
index eefa7eb..19da99e 100644
--- a/src/config/default.toml
+++ b/src/config/default.toml
@@ -27,7 +27,8 @@ bitcoin_rpc_endpoint = "http://devnet:devnet@127.0.0.1:18443"
 signers_xonly = "0000000000000000000000000000000000000000000000000000000000000001"
 recipient = "ST3497E9JFQ7KB9VEHAZRWYKF3296WQZEXBPXG193"
 max_fee = 20000
-lock_time = 10
+lock_time = 950
+# This MUST be configured correctly in non-test environments
 reclaim_script = ""
 
 # !! ===========================================================================
diff --git a/src/deposit_monitor.rs b/src/deposit_monitor.rs
index a3085b2..3335254 100644
--- a/src/deposit_monitor.rs
+++ b/src/deposit_monitor.rs
@@ -1,7 +1,8 @@
 //! Module to monitor for pending deposits
 
 use std::collections::HashMap;
-use std::num::NonZero;
+use std::num::NonZeroUsize;
+use std::str::FromStr as _;
 
 use bitcoin::{BlockHash, ScriptBuf, Txid};
 use emily_client::models::CreateDepositRequestBody;
@@ -59,12 +60,18 @@ pub struct DepositMonitor {
     context: Context,
     monitored: HashMap<ScriptBuf, MonitoredDeposit>,
     tx_hex_cache: LruCache<(Txid, BlockHash), String>,
+    created_deposits: LruCache<(Txid, u32), ()>,
 }
 
 // TODO: make cache size configurable
 // As for now numbers are chosen to keep cache size around 4MB
-const TX_HEX_CACHE_SIZE: NonZero<usize> =
-    NonZero::new(8_000_usize).expect("Cache size must be non-zero");
+const TX_HEX_CACHE_SIZE: NonZeroUsize =
+    NonZeroUsize::new(8_000).expect("Cache size must be non-zero");
+
+/// How many created deposits to keep track of. This should keep the max memory
+/// usage below 10MB.
+const CREATED_DEPOSITS_CACHE_SIZE: NonZeroUsize =
+    NonZeroUsize::new(100_000).expect("Cache size must be non-zero");
 
 impl DepositMonitor {
     /// Creates a new `DepositMonitor`
@@ -78,6 +85,7 @@ impl DepositMonitor {
             context,
             monitored,
             tx_hex_cache: LruCache::new(TX_HEX_CACHE_SIZE),
+            created_deposits: LruCache::new(CREATED_DEPOSITS_CACHE_SIZE),
         }
     }
 
@@ -136,7 +144,13 @@ impl DepositMonitor {
 
         let create_deposits = utxos
             .iter()
-            .flat_map(|utxo| {
+            .filter_map(|utxo| {
+                // Emily will nop for duplicates, still we try avoiding wasting
+                // time for deposits we already created in this session.
+                if self.created_deposits.get(&(utxo.txid, utxo.vout)).is_some() {
+                    return None;
+                }
+
                 self.get_deposit_from_utxo(utxo, chain_tip)
                     .inspect_err(|error| match error {
                         Error::DepositExpired => tracing::info!(
@@ -160,4 +174,22 @@ impl DepositMonitor {
 
         Ok(create_deposits)
     }
+
+    /// Mark a deposit as (locally) created
+    pub fn deposit_created(&mut self, bitcoin_txid: &str, bitcoin_tx_output_index: u32) {
+        match Txid::from_str(bitcoin_txid) {
+            Ok(txid) => {
+                self.created_deposits
+                    .put((txid, bitcoin_tx_output_index), ());
+            }
+            Err(error) => {
+                tracing::warn!(
+                    %error,
+                    txid = %bitcoin_txid,
+                    vout = %bitcoin_tx_output_index,
+                    "failed to parse transaction id"
+                );
+            }
+        };
+    }
 }
diff --git a/src/main.rs b/src/main.rs
index f606989..bc47473 100644
--- a/src/main.rs
+++ b/src/main.rs
@@ -60,7 +60,6 @@ async fn fetch_and_create_deposits(
     }
 
     for deposit in deposits {
-        // TODO: emily will nop for duplicates, but we shouldn't send them
         if let Err(error) = deposit_api::create_deposit(emily_config, deposit.clone()).await {
             tracing::warn!(
                 %error,
@@ -74,6 +73,7 @@ async fn fetch_and_create_deposits(
                 vout = %deposit.bitcoin_tx_output_index,
                 "created deposit in emily"
             );
+            deposit_monitor.deposit_created(&deposit.bitcoin_txid, deposit.bitcoin_tx_output_index);
         }
     }