diff --git a/bridge/cmd/guardiand/main.go b/bridge/cmd/guardiand/main.go
index 1cac7ea2..284fdce0 100644
--- a/bridge/cmd/guardiand/main.go
+++ b/bridge/cmd/guardiand/main.go
@@ -29,6 +29,11 @@ var (
 	logLevel = flag.String("loglevel", "info", "Logging level (debug, info, warn, error, dpanic, panic, fatal)")
 )
 
+var (
+	rootCtx       context.Context
+	rootCtxCancel context.CancelFunc
+)
+
 func main() {
 	flag.Parse()
 
@@ -67,33 +72,35 @@ func main() {
 	ethContractAddr := eth_common.HexToAddress(*ethContract)
 
 	// Node's main lifecycle context.
-	ctx, cancel := context.WithCancel(context.Background())
-	defer cancel()
+	rootCtx, rootCtxCancel = context.WithCancel(context.Background())
+	defer rootCtxCancel()
 
 	// Ethereum lock event channel
 	ec := make(chan *common.ChainLock)
 
 	// Run supervisor.
-	supervisor.New(ctx, logger.Desugar(), func(ctx context.Context) error {
+	supervisor.New(rootCtx, logger.Desugar(), func(ctx context.Context) error {
 		if err := supervisor.Run(ctx, "p2p", p2p); err != nil {
 			return err
 		}
 
-		watcher := ethereum.NewEthBridgeWatcher(
-			*ethRPC, ethContractAddr, *ethConfirmations, ec)
-
-		if err := supervisor.Run(ctx, "eth", watcher.Run); err != nil {
+		if err := supervisor.Run(ctx, "eth",
+			ethereum.NewEthBridgeWatcher(*ethRPC, ethContractAddr, *ethConfirmations, ec).Run); err != nil {
 			return err
 		}
 
+		logger.Info("Started internal services")
 		supervisor.Signal(ctx, supervisor.SignalHealthy)
-		logger.Info("Created services")
 
-		select {}
-	}, supervisor.WithPropagatePanic)
-	// TODO(leo): only propagate panics in debug mode. We currently need this to properly reset p2p
-	// (it leaks its socket and we need to restart the process to fix it)
+		select {
+		case <-ctx.Done():
+			return nil
+		}
+	})
 
-	select {}
+	select {
+	case <-rootCtx.Done():
+		logger.Info("root context cancelled, exiting...")
+		// TODO: wait for things to shut down gracefully
+	}
 }
-
diff --git a/bridge/cmd/guardiand/p2p.go b/bridge/cmd/guardiand/p2p.go
index 3da58c30..2b002ad6 100644
--- a/bridge/cmd/guardiand/p2p.go
+++ b/bridge/cmd/guardiand/p2p.go
@@ -26,8 +26,7 @@ import (
 	"github.com/certusone/wormhole/bridge/pkg/supervisor"
 )
 
-func p2p(ctx context.Context) error {
-
+func p2p(ctx context.Context) (re error) {
 	logger := supervisor.Logger(ctx)
 
 	priv := bootstrapNodePrivateKeyHack()
@@ -84,26 +83,18 @@ func p2p(ctx context.Context) error {
 			return idht, err
 		}),
 	)
-	defer func() {
-		fmt.Printf("h is %+v", h)
-		// FIXME: why can this be nil? We need to close the host to free the socket because apparently,
-		// closing the context is not enough, but sometimes h is nil when the function runs.
-		if h != nil {
-			h.Close()
-		}
-	}()
 
 	if err != nil {
 		panic(err)
 	}
 
+	defer func() {
+		// TODO: libp2p cannot be cleanly restarted (https://github.com/libp2p/go-libp2p/issues/992)
+		logger.Error("p2p routine has exited, cancelling root context...", zap.Error(re))
+		rootCtxCancel()
+	}()
+
 	logger.Info("Connecting to bootstrap peers")
-	// TODO(leo): use our own bootstrap peers rather than the IPFS ones so we have a dedicated network
-	//for _, addr := range dht.DefaultBootstrapPeers {
-	//	pi, _ := peer.AddrInfoFromP2pAddr(addr)
-	//	// We ignore errors as some bootstrap peers may be down and that is fine.
-	//	_ = h.Connect(ctx, *pi)
-	//}
 
 	// Add our own bootstrap nodes
 
@@ -146,9 +137,6 @@ func p2p(ctx context.Context) error {
 		logger.Info("Connected to bootstrap peers", zap.Int("num", successes))
 	}
 
-	// TODO(leo): crash if we couldn't connect to any bootstrap peers?
-	// (i.e. can we get stuck here if the other nodes have yet to come up?)
-
 	topic := fmt.Sprintf("%s/%s", *p2pNetworkID, "broadcast")
 
 	logger.Info("Subscribing pubsub topic", zap.String("topic", topic))