LUKS is a Linux Hard Disk Encryption solution. See http://gentoo-wiki.com/SECURITY_System_Encryption_DM-Crypt_with_LUKS Creating an initrd manually is quite boring. Here is the patch that adds LUKS support to genkernel. To boot into a root LUKS volume, one has to supply real_root=luks:<LUKS-device> as boot option. I decided for this syntax as it has some similarties to URLs.. for instance luks:/dev/sda3. I like that better over an autoprobing magic. The patch is quite simple and diffed against 3.3.10. I didn't bother to make a clean diff against the source tarball, but I'm sure you can quickly figure out how it's meant to be applied.
*** This bug has been marked as a duplicate of 122421 ***
Created attachment 80117 [details, diff] patched patch for LUKS support in genkernel. Here are all components needed for proper LUKS support in genkernel. This makes Gentoo the first distro that can use encryption on root fs out of the box. Simply supply real_root=luks:/your/luks/device as boot option. You have to take a look at the patch to figure out how it has to be applied, but I presume any reasonable maintainer would have done this even without this remark. You might also want to factor out "is_static".