diff --git a/contracts/Storage.sol b/contracts/Storage.sol
index 6e1ab5d..13ceb4c 100644
--- a/contracts/Storage.sol
+++ b/contracts/Storage.sol
@@ -3,8 +3,11 @@ pragma solidity ^0.8.0;
 
 import "./Contracts.sol";
 import "./Proofs.sol";
+import "./Stakes.sol";
 
-contract Storage is Contracts, Proofs {
+contract Storage is Contracts, Proofs, Stakes {
+
+  constructor(IERC20 token) Stakes(token) {}
 
   function newContract(
     uint _duration,
@@ -21,6 +24,7 @@ contract Storage is Contracts, Proofs {
   )
     public
   {
+    require(_stake(_host) > 0, "Insufficient stake");
     bytes32 id = _newContract(
       _duration,
       _size,
@@ -102,4 +106,8 @@ contract Storage is Contracts, Proofs {
   function markProofAsMissing(bytes32 contractId, uint blocknumber) public {
     _markProofAsMissing(contractId, blocknumber);
   }
+
+  function increaseStake(uint amount) public {
+    _increaseStake(amount);
+  }
 }
diff --git a/test/Storage.test.js b/test/Storage.test.js
index cbc5e0c..45c22ec 100644
--- a/test/Storage.test.js
+++ b/test/Storage.test.js
@@ -5,23 +5,31 @@ const { exampleRequest, exampleBid } = require("./examples")
 
 describe("Storage", function () {
 
+  const request = exampleRequest()
+  const bid = exampleBid()
+
+  let storage
+  let token
+  let client, host
+
+  beforeEach(async function () {
+    [client, host] = await ethers.getSigners()
+    let Token = await ethers.getContractFactory("TestToken")
+    let StorageContracts = await ethers.getContractFactory("Storage")
+    token = await Token.connect(host).deploy()
+    storage = await StorageContracts.deploy(token.address)
+  })
+
   describe("creating a new storage contract", function () {
 
-    const request = exampleRequest()
-    const bid = exampleBid()
-
-    let contracts
-    let client, host
     let id
 
     beforeEach(async function () {
-      [client, host] = await ethers.getSigners()
-      let StorageContracts = await ethers.getContractFactory("Storage")
-      contracts = await StorageContracts.deploy()
+      await token.approve(storage.address, 20)
+      await storage.connect(host).increaseStake(20)
       let requestHash = hashRequest(request)
       let bidHash = hashBid({...bid, requestHash})
-      id = bidHash
-      await contracts.newContract(
+      await storage.newContract(
         request.duration,
         request.size,
         request.contentHash,
@@ -34,26 +42,49 @@ describe("Storage", function () {
         await sign(client, requestHash),
         await sign(host, bidHash)
       )
+      id = bidHash
     })
 
     it("created the contract", async function () {
-      expect(await contracts.duration(id)).to.equal(request.duration)
-      expect(await contracts.size(id)).to.equal(request.size)
-      expect(await contracts.contentHash(id)).to.equal(request.contentHash)
-      expect(await contracts.price(id)).to.equal(bid.price)
-      expect(await contracts.host(id)).to.equal(await host.getAddress())
+      expect(await storage.duration(id)).to.equal(request.duration)
+      expect(await storage.size(id)).to.equal(request.size)
+      expect(await storage.contentHash(id)).to.equal(request.contentHash)
+      expect(await storage.price(id)).to.equal(bid.price)
+      expect(await storage.host(id)).to.equal(await host.getAddress())
     })
 
     it("requires storage proofs", async function (){
-      expect(await contracts.proofPeriod(id)).to.equal(request.proofPeriod)
-      expect(await contracts.proofTimeout(id)).to.equal(request.proofTimeout)
+      expect(await storage.proofPeriod(id)).to.equal(request.proofPeriod)
+      expect(await storage.proofTimeout(id)).to.equal(request.proofTimeout)
     })
   })
+
+  it("doesn't create contract when insufficient stake", async function () {
+    let requestHash = hashRequest(request)
+    let bidHash = hashBid({...bid, requestHash})
+    await expect(storage.newContract(
+      request.duration,
+      request.size,
+      request.contentHash,
+      request.proofPeriod,
+      request.proofTimeout,
+      request.nonce,
+      bid.price,
+      await host.getAddress(),
+      bid.bidExpiry,
+      await sign(client, requestHash),
+      await sign(host, bidHash)
+    )).to.be.revertedWith("Insufficient stake")
+  })
 })
 
-// TODO: implement checking of actual proofs of storage, instead of dummy bool
-// TODO: payment on constructor
+// TODO: configurable amount of stake
+// TODO: lock up stake when new contract
+// TODO: unlock stake at end of contract
+// TODO: payment when new contract
 // TODO: contract start and timeout
+// TODO: failure to start contract burns host and client
+// TODO: implement checking of actual proofs of storage, instead of dummy bool
 // TODO: only allow proofs after start of contract
+// TODO: proofs no longer required after contract duration
 // TODO: payout
-// TODO: stake