EigenLayer: Activating Additional Rewards for Restaked LSTs

The Problem with Restaking Today

EigenLayer has reshaped how institutional capital approaches Ethereum security. Over $10 billion in assets have been restaked to secure the protocol, and P2P.org has established itself as a leading Operator with hundreds of millions in delegated stake.

However, for many restakers the economic model has remained incomplete.

The typical restaking workflow looks like this: users delegate their stETH or rETH to an EigenLayer Operator, accumulate $EIGEN programmatic incentives, and maintain exposure to the restaking ecosystem. The underlying Liquid Staking Tokens (LSTs) delegated to Operators often remain inactive from a reward perspective, effectively functioning as collateral for restaking participation.

For institutions managing large ETH positions, capital efficiency matters. When assets serve a single purpose inside the restaking system, allocators naturally look for ways to activate additional utility while maintaining protocol exposure.

Introducing Aleph Finance

Aleph Finance is an EigenLayer AVS (Actively Validated Service) designed to address this limitation.

Through the integration, idle LST liquidity within EigenLayer Operators can be connected to on-chain reward strategies while remaining within the broader EigenLayer ecosystem.

This enables restakers delegating through P2P.org to participate in additional protocol-level reward mechanisms alongside their existing restaking participation.

The reward streams include:

Protocol rewards on LST liquidity: Additional rewards generated through Aleph Finance integrations with on-chain strategies.

Restaking incentives: Continued accumulation of $EIGEN programmatic incentives through EigenLayer participation.

Optional $EIGEN restaking: Participants may restake accumulated $EIGEN incentives through Aleph’s mechanisms to enable further protocol-level rewards.

Importantly, restakers maintain their EigenLayer exposure while participating in these additional reward mechanisms.

Why This Matters Now

EigenLayer’s Programmatic Incentives v2 recently increased the allocation of $EIGEN incentives to restakers from 1 percent to 4 percent.

This structural change strengthens the incentives for continued participation in the restaking ecosystem.

The Aleph Finance integration introduces an additional protocol-level functionality related to rewards for LST liquidity already participating in EigenLayer, enabling a more capital-efficient restaking configuration without requiring users to exit the ecosystem.

How the Integration Works

P2P.org operates as an EigenLayer Operator and has integrated Aleph Finance as an AVS.

The integration functions through the following structure:

1. Restakers delegate stETH or rETH to P2P.org as their EigenLayer Operator
2. LST liquidity associated with these delegations can be connected to Aleph Finance reward strategies
3. Strategy configurations are curated by kpk, a recognized provider of institutional DeFi strategy design
4. Protocol incentives and reward distributions may occur on-chain while $EIGEN programmatic incentives continue to accumulate through restaking participation 

The infrastructure supporting the integration includes monitoring systems, whitelisted operator configurations, and optional third-party coverage mechanisms depending on configuration.

The AVS stack has undergone multiple independent security audits, with ongoing audit programs maintained across the system.

Note: Participation in the Aleph Finance AVS requires delegation through a dedicated whitelisted P2P.org EigenLayer Operator. P2P.org’s primary Operator is not opted into Aleph Finance by default

P2P.org as Your EigenLayer Operator

P2P.org is one of the largest EigenLayer Operators by delegated stake, operating validation infrastructure across more than 40 networks and securing over $10 billion in assets.

As one of the community multisig participants securing the EigenLayer protocol, P2P.org has supported the ecosystem since its Stage 1 Mainnet launch.

Clients delegating through P2P.org benefit from enterprise-grade infrastructure, including SOC 2 compliant operational standards, geographically distributed validator architecture, and continuous monitoring systems across production environments.

Each AVS integration is evaluated prior to activation to assess operational and protocol risks, and P2P.org maintains direct coordination with protocol teams to ensure reliable infrastructure deployment.

The Aleph Finance integration has already been presented to institutional Liquid Restaking Token partners, with active coordination between the teams as the ecosystem continues to expand.

Activating Additional Rewards on Restaked LSTs

For institutions holding stETH or rETH within EigenLayer, the Aleph Finance integration introduces a way to enable additional protocol reward streams while maintaining restaking participation.

P2P.org can configure a dedicated EigenLayer Operator environment tailored to Aleph Finance participation, allowing institutional clients to maintain operational separation from other delegations.

To learn more about the integration, infrastructure configuration, and participation process, you can schedule a discussion with our team.

Schedule a call:https://calendly.com/jonathan-reisman-p2p/30min-1?back=1

Disclaimer: This material is provided for informational purposes only and does not constitute investment advice, an offer, or a solicitation to invest in any financial instrument or strategy. Participation in restaking, staking, and AVS-related activities involves risks, including potential loss of assets. Past performance or protocol rewards are not indicative of future results.