Redemption

Redemptions move LST out of an Aleph Vault back to EigenLayer. Any alETH holder can redeem through a two-step process: first requesting unallocation, then completing it once funds are available.

Flow

Step 1: Request Unallocation

1. Holder withdraws alETH from the alETHStrategy in EigenLayer

2. Holder calls requestUnallocate() on the AVS with alETH amount and target Vault

3. AVS burns the alETH tokens

4. Vault receives a redemption request and calculates estimated amount to redeem

5. Pending unallocation is tracked for the holder

Step 2: Complete Unallocation

1. Holder checks if unallocation can be completed using getPendingUnallocateStatus()

2. Holder calculates expected amount using calculateCompleteUnallocateAmount()

3. Holder generates signature for strategy deposit with the expected amount

4. Holder calls completeUnallocate() on the AVS

5. Vault withdraws redeemable LST to the AVS

6. AVS deposits LST back into holder's EigenLayer strategy position

The two steps are separate transactions. Step 1 can be called immediately, while Step 2 requires waiting for the vault to process the redemption request and have redeemable funds available.

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Execution Sequence

The redemption process consists of two separate transactions.

Step 1: Request Unallocation

1. Validation and Token Burn

The AVS performs initial checks and burns the alETH tokens from the caller.

Balance Validation

The caller must hold sufficient slashed strategy tokens:

AlephVaultManagement.validateAndBurnSlashedTokens(
    msg.sender, 
    _slashedStrategy, 
    _tokenAmount, 
    address(this)
);

Estimated Amount Calculation

The estimated amount to redeem is calculated based on the current vault price per share:

estAmountToRedeem = AlephVaultManagement.calculateAmountToRedeem(
    _classId, 
    _alephVault, 
    address(_slashedStrategy.underlyingToken()), 
    _tokenAmount
);

Redemption Request

The AVS requests redemption from the vault:

IAlephVaultRedeem.RedeemRequestParams memory _redeemParams =
    IAlephVaultRedeem.RedeemRequestParams({
        classId: _classId, 
        estAmountToRedeem: estAmountToRedeem
    });
batchId = IAlephVaultRedeem(_alephVault).requestRedeem(_redeemParams);

Pending Tracking

The estimated amount is stored as pending unallocation:

pendingUnallocate[msg.sender][_alephVault] += estAmountToRedeem;
totalPendingUnallocate[_alephVault] += estAmountToRedeem;

Step 2: Complete Unallocation

1. Check Status

Before completing, check if unallocation can be completed:

(uint256 userPending, uint256 totalPending, uint256 redeemable, bool canComplete) =
    alephAVS.getPendingUnallocateStatus(userAddress, vaultAddress);

2. Calculate Expected Amount

Calculate the expected amount for signature generation:

uint256 expectedAmount = alephAVS.calculateCompleteUnallocateAmount(
    userAddress, 
    vaultAddress
);

3. Withdraw from Vault

The AVS withdraws the redeemable amount from the vault:

uint256 _totalRedeemableAmount = UnallocateManagement.withdrawAndCalculateAvailable(
    _alephVault, 
    _vaultToken, 
    _vaultRedeemableAmount, 
    _withdrawnAmount
);

Proportional Distribution

If multiple users have pending unallocations, funds are distributed proportionally:

User's Share = (userPendingAmount / totalPendingAmount) × totalRedeemableAmount

4. Deposit to EigenLayer

The AVS deposits the redeemed LST back into the holder's EigenLayer strategy:

uint256 shares = AlephVaultManagement.depositToOriginalStrategy(
    STRATEGY_MANAGER,
    _originalStrategy,
    _vaultToken,
    msg.sender,
    _amount,
    _strategyDepositExpiry,
    _strategyDepositSignature
);

The holder's stake returns to EigenLayer, still delegated to their Operator. From there they can reallocate, redelegate, or withdraw through EigenLayer's standard unstaking flow.

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Parameters

Step 1: requestUnallocate

function requestUnallocate(
    address _alephVault,
    uint256 _tokenAmount
) external returns (uint48 batchId, uint256 estAmountToRedeem)

• _alephVault: Vault to redeem from

• _tokenAmount: Amount of slashed strategy tokens to burn

Returns:

• batchId: The batch ID for the redeem request

• estAmountToRedeem: The estimated amount that will be redeemed

Step 2: completeUnallocate

function completeUnallocate(
    address _alephVault,
    uint256 _strategyDepositExpiry,
    bytes calldata _strategyDepositSignature
) external returns (uint256 amount, uint256 shares)

• _alephVault: Vault to complete unallocation from

• _strategyDepositExpiry: Expiry timestamp for the EigenLayer deposit signature

• _strategyDepositSignature: EIP-712 signature authorizing the deposit back to EigenLayer

Returns:

• amount: The amount of tokens redeemed and deposited to the strategy

• shares: The shares received in the original LST strategy

Events

event UnallocateRequested(
    address indexed tokenHolder,
    address indexed alephVault,
    address slashedStrategy,
    uint256 tokenAmount,
    uint256 estAmountToRedeem,
    uint48 batchId,
    uint8 classId
);

event UnallocateCompleted(
    address indexed tokenHolder,
    address indexed alephVault,
    address originalStrategy,
    address slashedStrategy,
    uint256 amount,
    uint256 shares,
    uint8 classId
);