diff --git a/include/llarp/encrypted_frame.hpp b/include/llarp/encrypted_frame.hpp
index 8bc97be5b..1655ea03c 100644
--- a/include/llarp/encrypted_frame.hpp
+++ b/include/llarp/encrypted_frame.hpp
@@ -25,7 +25,7 @@ namespace llarp
     DecryptInPlace(byte_t* seckey, llarp_crypto* crypto);
 
     bool
-    EncryptInPlace(byte_t* seckey, llarp_crypto* crypto);
+    EncryptInPlace(byte_t* seckey, byte_t* other, llarp_crypto* crypto);
   };
 
   /// TOOD: can only handle 1 frame at a time
@@ -40,7 +40,7 @@ namespace llarp
       AsyncFrameEncrypter< User >* ctx =
           static_cast< AsyncFrameEncrypter< User >* >(user);
 
-      if(ctx->frame->EncryptInPlace(ctx->seckey, ctx->crypto))
+      if(ctx->frame->EncryptInPlace(ctx->seckey, ctx->otherKey, ctx->crypto))
         ctx->handler(ctx->frame, ctx->user);
       else
       {
@@ -54,6 +54,7 @@ namespace llarp
     EncryptHandler handler;
     EncryptedFrame* frame;
     User* user;
+    byte_t* otherKey;
 
     AsyncFrameEncrypter(llarp_crypto* c, byte_t* seckey, EncryptHandler h)
         : crypto(c), secretkey(seckey), handler(h)
@@ -61,9 +62,12 @@ namespace llarp
     }
 
     void
-    AsyncEncrypt(llarp_threadpool* worker, llarp_buffer_t buf, User* u)
+    AsyncEncrypt(llarp_threadpool* worker, llarp_buffer_t buf, byte_t* other,
+                 User* u)
     {
-      frame = new EncryptedFrame(buf.sz);
+      // TODO: should we own otherKey?
+      otherKey = other;
+      frame    = new EncryptedFrame(buf.sz);
       memcpy(frame->data + EncryptedFrame::OverheadSize, buf.base, buf.sz);
       user = u;
       llarp_threadpool_queue_job(worker, {this, &Encrypt});
diff --git a/llarp/encrypted_frame.cpp b/llarp/encrypted_frame.cpp
index 457c2d903..29e19ae43 100644
--- a/llarp/encrypted_frame.cpp
+++ b/llarp/encrypted_frame.cpp
@@ -1,3 +1,4 @@
+#include <llarp/crypto.hpp>
 #include <llarp/encrypted_frame.hpp>
 #include "logger.hpp"
 
@@ -24,6 +25,64 @@ namespace llarp
       delete[] data;
   }
 
+  bool
+  EncryptedFrame::EncryptInPlace(byte_t* ourSecretKey, byte_t* otherPubkey,
+                                 llarp_crypto* crypto)
+  {
+    // format of frame is
+    // <32 bytes keyed hash of following data>
+    // <32 bytes nonce>
+    // <32 bytes pubkey>
+    // <N bytes encrypted payload>
+    //
+    byte_t* hash   = data;
+    byte_t* nonce  = hash + sizeof(llarp_shorthash_t);
+    byte_t* pubkey = nonce + sizeof(llarp_tunnel_nonce_t);
+    byte_t* body   = pubkey + sizeof(llarp_pubkey_t);
+
+    llarp_sharedkey_t shared;
+
+    auto DH      = crypto->dh_client;
+    auto Encrypt = crypto->xchacha20;
+    auto MDS     = crypto->hmac;
+
+    llarp_buffer_t buf;
+    buf.base = body;
+    buf.cur  = buf.base;
+    buf.sz   = size - OverheadSize;
+
+    // set our pubkey
+    memcpy(pubkey, llarp::seckey_topublic(ourSecretKey),
+           sizeof(llarp_pubkey_t));
+    // randomize nonce
+    crypto->randbytes(nonce, sizeof(llarp_tunnel_nonce_t));
+
+    // derive shared key
+    if(!DH(shared, otherPubkey, nonce, ourSecretKey))
+    {
+      llarp::Error("DH failed");
+      return false;
+    }
+    // encrypt body
+    if(!Encrypt(buf, shared, nonce))
+    {
+      llarp::Error("encrypt failed");
+      return false;
+    }
+
+    // generate message auth
+    buf.base = nonce;
+    buf.cur  = buf.base;
+    buf.sz   = size - sizeof(llarp_shorthash_t);
+
+    if(!MDS(hash, buf, shared))
+    {
+      llarp::Error("Failed to generate messgae auth");
+      return false;
+    }
+    return true;
+  }
+
   bool
   EncryptedFrame::DecryptInPlace(byte_t* ourSecretKey, llarp_crypto* crypto)
   {
@@ -39,19 +98,19 @@ namespace llarp
     // <N bytes encrypted payload>
     //
     byte_t* hash        = data;
-    byte_t* nonce       = hash + sizeof(llarp_pubkey_t);
+    byte_t* nonce       = hash + sizeof(llarp_shorthash_t);
     byte_t* otherPubkey = nonce + sizeof(llarp_tunnel_nonce_t);
-    byte_t* body        = otherPubkey + sizeof(llarp_shorthash_t);
+    byte_t* body        = otherPubkey + sizeof(llarp_pubkey_t);
 
     // use dh_server becuase we are not the creator of this message
     auto DH      = crypto->dh_server;
     auto Decrypt = crypto->xchacha20;
-    auto Digest  = crypto->hmac;
+    auto MDS     = crypto->hmac;
 
     llarp_buffer_t buf;
-    buf.base = body;
+    buf.base = nonce;
     buf.cur  = buf.base;
-    buf.sz   = size - OverheadSize;
+    buf.sz   = size - sizeof(llarp_shorthash_t);
 
     llarp_sharedkey_t shared;
     llarp_shorthash_t digest;
@@ -62,7 +121,7 @@ namespace llarp
       return false;
     }
 
-    if(!Digest(digest, buf, shared))
+    if(!MDS(digest, buf, shared))
     {
       llarp::Error("Digest failed");
       return false;
@@ -74,6 +133,10 @@ namespace llarp
       return false;
     }
 
+    buf.base = body;
+    buf.cur  = body;
+    buf.sz   = size - OverheadSize;
+
     if(!Decrypt(buf, shared, nonce))
     {
       llarp::Error("decrypt failed");