Vault

Overview

Aleph Vaults are yield-generating containers where restaker capital is actively managed. Each Vault holds LST and is operated by a professional manager who executes DeFi strategies to generate returns on top of base staking yield.

Operators allocate delegated stake into Vaults, and the AVS handles the movement of LST from EigenLayer into the Vault. In return, restakers receive alETH - a token representing their proportional ownership of the Vault's position.

Flow of Funds

When an Operator calls allocate() on the AVS, the system uses EigenLayer's redistribution mechanism to redistribute LST from the Operator's delegation into the target Vault. This isn't punitive slashing - it's a capital reallocation tool that moves assets while preserving the underlying EigenLayer security delegation.

The Vault immediately mints shares based on the current NAV, and the AVS mints an equivalent amount of alETH. This happens atomically in a single transaction.

Deposits

Operators allocate to Vaults by calling allocate() on the AVS. The system redistributes LST from the Operator's EigenLayer delegation into the Vault, mints shares at the current NAV, and issues alETH in a single atomic transaction.

Redemptions

Restakers redeem through a two-step process:

1. Request: Call requestUnallocate() on the AVS to burn alETH and request redemption. The Vault receives the redemption request and calculates the estimated amount.

2. Complete: Once the Vault has processed the request and has redeemable funds, call completeUnallocate() to complete the redemption. The Vault burns shares, returns LST at current NAV, and the AVS deposits it back into the restaker's EigenLayer strategy position.

Pricing

Vaults use NAV-based pricing, which represents the total value of Vault assets divided by outstanding shares.Deposits and redemptions execute at the current NAV per share:

• Deposit: Shares Minted = LST Amount / NAV per Share

• Redemption: LST Returned = Shares Burned × NAV per Share