diff --git a/federation/rest.yaml b/federation/rest.yaml
index 255b7dc6a..cc5f177a3 100644
--- a/federation/rest.yaml
+++ b/federation/rest.yaml
@@ -129,7 +129,7 @@ endpoints:
         parameters:
           path: [ { name: nodeID, type: uint64, required: true, title: NodeID } ]
           post:
-            - name: tokenA
+            - name: authToken
               type: string
               required: true
               title: Node A token
diff --git a/federation/rest/node.go b/federation/rest/node.go
index 1680e997d..e95e25ae0 100644
--- a/federation/rest/node.go
+++ b/federation/rest/node.go
@@ -2,6 +2,7 @@ package rest
 
 import (
 	"context"
+
 	"github.com/cortezaproject/corteza-server/federation/rest/request"
 	"github.com/cortezaproject/corteza-server/federation/service"
 	"github.com/cortezaproject/corteza-server/federation/types"
@@ -103,7 +104,7 @@ func (ctrl Node) HandshakeConfirm(ctx context.Context, r *request.NodeHandshakeC
 }
 
 func (ctrl Node) HandshakeComplete(ctx context.Context, r *request.NodeHandshakeComplete) (interface{}, error) {
-	return api.OK(), ctrl.svcNode.HandshakeComplete(ctx, r.NodeID, r.TokenA)
+	return api.OK(), ctrl.svcNode.HandshakeComplete(ctx, r.NodeID, r.AuthToken)
 }
 
 func (ctrl Node) makePayload(ctx context.Context, m *types.Node, err error) (*nodePayload, error) {
diff --git a/federation/rest/request/node.go b/federation/rest/request/node.go
index d2504c0a3..12d9d872f 100644
--- a/federation/rest/request/node.go
+++ b/federation/rest/request/node.go
@@ -123,10 +123,10 @@ type (
 		// NodeID
 		NodeID uint64 `json:",string"`
 
-		// TokenA POST parameter
+		// AuthToken POST parameter
 		//
 		// Node A token
-		TokenA string
+		AuthToken string
 	}
 )
 
@@ -618,8 +618,8 @@ func NewNodeHandshakeComplete() *NodeHandshakeComplete {
 // Auditable returns all auditable/loggable parameters
 func (r NodeHandshakeComplete) Auditable() map[string]interface{} {
 	return map[string]interface{}{
-		"nodeID": r.NodeID,
-		"tokenA": r.TokenA,
+		"nodeID":    r.NodeID,
+		"authToken": r.AuthToken,
 	}
 }
 
@@ -629,8 +629,8 @@ func (r NodeHandshakeComplete) GetNodeID() uint64 {
 }
 
 // Auditable returns all auditable/loggable parameters
-func (r NodeHandshakeComplete) GetTokenA() string {
-	return r.TokenA
+func (r NodeHandshakeComplete) GetAuthToken() string {
+	return r.AuthToken
 }
 
 // Fill processes request and fills internal variables
@@ -653,8 +653,8 @@ func (r *NodeHandshakeComplete) Fill(req *http.Request) (err error) {
 
 		// POST params
 
-		if val, ok := req.Form["tokenA"]; ok && len(val) > 0 {
-			r.TokenA, err = val[0], nil
+		if val, ok := req.Form["authToken"]; ok && len(val) > 0 {
+			r.AuthToken, err = val[0], nil
 			if err != nil {
 				return err
 			}
diff --git a/federation/service/node.go b/federation/service/node.go
index d173599a3..ee5c0b772 100644
--- a/federation/service/node.go
+++ b/federation/service/node.go
@@ -53,13 +53,8 @@ func Node(s store.Storer, u service.UserService, al actionlog.Recorder, th auth.
 		sysUser:      u,
 		actionlog:    al,
 		tokenEncoder: th,
-
-		// name of this node
-		// @todo read this from settings
-		name: "Server A",
-
-		// @todo read this from settings
-		host: options.Host,
+		name:         options.Label,
+		host:         options.Host,
 
 		// @todo use HTTP_API_BASE_URL (HTTPServerOpt.ApiBaseUrl) to prefix URI path
 		baseURL: "/federation",
@@ -267,7 +262,7 @@ func (svc node) Pair(ctx context.Context, nodeID uint64) error {
 func (svc node) HandshakeInit(ctx context.Context, nodeID uint64, pairToken string, sharedNodeID uint64, authToken string) error {
 	_, err := svc.updater(
 		ctx,
-		nodeID,
+		sharedNodeID,
 		NodeActionHandshakeInit,
 		func(ctx context.Context, n *types.Node) error {
 			// @todo need to check node status before we can proceed with initialization
@@ -320,15 +315,25 @@ func (svc node) HandshakeConfirm(ctx context.Context, nodeID uint64) error {
 }
 
 // HandshakeComplete is used by server B to handle handshake confirmation
-func (svc node) HandshakeComplete(ctx context.Context, nodeID uint64, token string) error {
-	_, err := svc.updater(ctx, nodeID, NodeActionHandshakeComplete, func(ctx context.Context, n *types.Node) error {
-		n.Status = types.NodeStatusPaired
+func (svc node) HandshakeComplete(ctx context.Context, sharedNodeID uint64, token string) error {
+	var (
+		n   *types.Node
+		err error
+	)
 
+	if n, err = store.LookupFederationNodeBySharedNodeID(ctx, svc.store, sharedNodeID); err != nil {
+		return err
+	}
+
+	_, err = svc.updater(ctx, n.ID, NodeActionHandshakeComplete, func(ctx context.Context, n *types.Node) error {
+		n.AuthToken = token
+		n.Status = types.NodeStatusPaired
 		n.UpdatedBy = auth.GetIdentityFromContext(ctx).Identity()
 		n.UpdatedAt = now()
 
 		return nil
 	}, nil)
+
 	return err
 }
 
@@ -437,7 +442,7 @@ func (node) decodePairingURI(uri string) (*types.Node, error) {
 		}
 
 		n.Name = parsedURI.Query().Get("name")
-		n.BaseURL = fmt.Sprintf("https://%s/%s", parsedURI.Host, strings.Trim(parsedURI.Path, "/"))
+		n.BaseURL = fmt.Sprintf("%s://%s/%s", parsedURI.Scheme, parsedURI.Host, strings.Trim(parsedURI.Path, "/"))
 		return nil
 	}()
 }
diff --git a/federation/service/node_handshaker.go b/federation/service/node_handshaker.go
index b9d02443c..9cc3883c5 100644
--- a/federation/service/node_handshaker.go
+++ b/federation/service/node_handshaker.go
@@ -5,9 +5,10 @@ import (
 	"context"
 	"encoding/json"
 	"fmt"
-	"github.com/cortezaproject/corteza-server/federation/types"
 	"net/http"
 	"strconv"
+
+	"github.com/cortezaproject/corteza-server/federation/types"
 )
 
 type (
@@ -40,7 +41,7 @@ func (h httpNodeHandshake) Init(ctx context.Context, n *types.Node, authToken st
 
 			// Share auth token for the federation service user for this node
 			"authToken":    authToken,
-			"sharedNodeID": strconv.FormatUint(n.ID, 10),
+			"sharedNodeID": strconv.FormatUint(n.SharedNodeID, 10),
 		}
 	)
 
@@ -60,6 +61,9 @@ func (h httpNodeHandshake) Complete(ctx context.Context, n *types.Node, authToke
 		}
 	)
 
+	// use n.AuthToken in context
+	ctx = context.WithValue(ctx, "authToken", n.AuthToken)
+
 	return h.send(ctx, endpoint, payload)
 }
 
@@ -74,6 +78,12 @@ func (h httpNodeHandshake) send(ctx context.Context, endpoint string, payload ma
 		return err
 	}
 
+	req.Header.Set("Content-Type", "application/json")
+
+	if authToken := ctx.Value("authToken"); authToken != nil {
+		req.Header.Set("Authorization", fmt.Sprintf("Bearer %s", authToken))
+	}
+
 	rsp, err := h.httpClient.Do(req.WithContext(ctx))
 	if err != nil {
 		return err
diff --git a/pkg/options/federation.go b/pkg/options/federation.go
index fbb04d4f2..5bf77fee2 100644
--- a/pkg/options/federation.go
+++ b/pkg/options/federation.go
@@ -3,6 +3,7 @@ package options
 type (
 	FederationOpt struct {
 		Enabled bool   `env:"FEDERATION_ENABLED"`
+		Label   string `env:"FEDERATION_LABEL"`
 		Host    string `env:"FEDERATION_HOST"`
 	}
 )
@@ -11,6 +12,7 @@ func Federation() (o *FederationOpt) {
 
 	o = &FederationOpt{
 		Enabled: false,
+		Label:   `Example host`,
 		Host:    `example.tld`,
 	}
 
diff --git a/tests/federation/main_test.go b/tests/federation/main_test.go
index b24d4d39a..d83c8b5ef 100644
--- a/tests/federation/main_test.go
+++ b/tests/federation/main_test.go
@@ -3,10 +3,13 @@ package federation
 import (
 	"context"
 	"errors"
+	"os"
+	"testing"
+
 	"github.com/cortezaproject/corteza-server/app"
 	"github.com/cortezaproject/corteza-server/federation/rest"
 	"github.com/cortezaproject/corteza-server/federation/service"
-	"github.com/cortezaproject/corteza-server/pkg/api"
+	"github.com/cortezaproject/corteza-server/pkg/api/server"
 	"github.com/cortezaproject/corteza-server/pkg/auth"
 	"github.com/cortezaproject/corteza-server/pkg/cli"
 	"github.com/cortezaproject/corteza-server/pkg/eventbus"
@@ -20,8 +23,6 @@ import (
 	"github.com/steinfletcher/apitest"
 	"github.com/stretchr/testify/require"
 	"go.uber.org/zap"
-	"os"
-	"testing"
 )
 
 type (
@@ -60,7 +61,7 @@ func InitTestApp() {
 
 	if r == nil {
 		r = chi.NewRouter()
-		r.Use(api.BaseMiddleware(logger.Default())...)
+		r.Use(server.BaseMiddleware(false, logger.Default())...)
 		helpers.BindAuthMiddleware(r)
 		rest.MountRoutes(r)
 	}