diff --git a/src/commands/initialize.ts b/src/commands/initialize.ts
index 248cee7..30fd84e 100644
--- a/src/commands/initialize.ts
+++ b/src/commands/initialize.ts
@@ -124,11 +124,17 @@ async function initializeLibrary(
         return;
     }
 
-    const libsPath = join(ukWorkdir, 'libs');
+    let libsPath
+    if (ukWorkdir.endsWith('.unikraft')) {
+        libsPath = join(ukWorkdir, 'libs');
+    } else {
+        libsPath = join(ukWorkdir, 'sources');
+    }
 
     const kraftEnv = Object.assign(process.env, { 'UK_WORKDIR': ukWorkdir });
-    const commands  = [new Command(
-        'kraft list pull unikraft@staging',
+
+    const commands = [new Command(
+        'kraft pkg pull unikraft:staging',
         { cwd: projectPath, env: kraftEnv },
         'Pulled unikraft.'
     )];
@@ -170,11 +176,11 @@ async function initializeLibrary(
 
     commands.push(new Command(
         `kraft lib init --no-prompt`
-            + ` --author-name "${authorName}"`
-            + ` --author-email "${authorEmail}"`
-            + ` --version ${libVersion}`
-            + ` --origin ${libOrigin}`
-            + ` ${libName}`,
+        + ` --author-name "${authorName}"`
+        + ` --author-email "${authorEmail}"`
+        + ` --version ${libVersion}`
+        + ` --origin ${libOrigin}`
+        + ` ${libName}`,
         { cwd: libsPath, env: kraftEnv },
         `Initialized ${libName} library.`
     ));
@@ -213,10 +219,10 @@ async function initializeCore(
     kraftStatusBarItem: StatusBarItem
 ) {
     const command = new Command(
-        'kraft list pull unikraft@staging',
+        'kraft pkg pull unikraft:staging',
         {
             cwd: projectPath,
-            env: Object.assign(process.env, {'UK_WORKDIR': projectPath})
+            env: Object.assign(process.env, { 'UK_WORKDIR': projectPath })
         },
         'Initialized new core project.',
         () => {
@@ -231,9 +237,9 @@ async function initializeCore(
 
 function getApps(ukWorkdir: string): string[] {
     const jsonApps = execSync(
-            'kraft list -a -j',
-            {env: Object.assign(process.env, {'UK_WORKDIR': ukWorkdir})}
-        ).toString();
+        'kraft list -a -j',
+        { env: Object.assign(process.env, { 'UK_WORKDIR': ukWorkdir }) }
+    ).toString();
 
     return JSON.parse(jsonApps)
         .applications
@@ -253,5 +259,5 @@ async function chooseUkWorkdir(projectPath: string): Promise<string | undefined>
     if (ukWorkdirLocation === 'Use local')
         return join(projectPath, '.unikraft');
 
-    return join(homedir(), '.unikraft');
+    return join(homedir(), '.local/share/kraftkit/');
 }