Asymetrix’s Endgame
Problem
Is regular staking truly beneficial for the average ETH holder? Data suggests that the typical Ethereum user holds roughly 1 ETH. Given the current staking APR of around 5%, this yields a modest return of about 0.05 ETH annually. It’s likely that such returns may not align with users’ expectations. So, what motivates them to hold onto their ETH? It’s evidently not primarily for staking rewards, but for capitalizing on potential ETH price surges. Does this imply that staking — a vital part of Ethereum’s ecosystem — is only advantageous for major stakeholders or ‘whales’?
Solution
Asymetrix comes into play here, contributing to a healthier ecosystem by democratizing access to staking for most holders. Not only can users continue holding their ETH assets, they also stand a chance to earn sizable rewards, all with minimal risk to their initial deposits.
Asymetrix already has quite a few successful cases, but perhaps the most notable one so far is the case of user 0X6ACE…8933.
Considering the volatility of cryptocurrencies like BTC & ETH, it might be worth risking modest staking returns for potentially higher gains through asset price growth. For instance, a user with a deposit of 15 stETH ($27,157.24) would have seen over 10% growth or an unrealized profit of $2,715 in the past month. The same user could’ve earned just an additional 0.5% or $135 from staking in that period.
On 07/07/2023, this user won in a weekly draw, receiving 4.75 ETH, roughly $9000. This equates to six years of regular staking. Hence, the user traded a guaranteed $135 return for a non-guaranteed $9000, still retaining the $2715 profit from asset growth.
Exited staking
Now imagine, hypothetically, Asymetrix operating a pool of 1 million Ether with an Ethereum staking APR of 6%. Indeed, this would equate to 60,000 Ether annually for distribution. These rewards, allocated asymmetrically among users, represent more than 2 million dollars per week (in ETH).
To illustrate this possible distribution, the top reward could be $250,000, followed by $150,000 for the second place and $100,000 for the third place. Furthermore, an additional 1,000 rewards of $1,500 each could be distributed. Every single week.
Longterm vision
When you consider the potential decline in ETH staking APR as the quantity of staked Ether increases (leading to an average APR of about 2–3%), it becomes evident that Asymetrix’s core concept, similar to premium bonds, offers a practical and necessary solution for the industry.
Moreover, this model has the capacity for long-term self-sustainability, eliminating the need for incentivization via native tokens. Take Uniswap’s initial success without its UNI tokens, for instance, due to a powerful concept with market fit — decentralized trading, an intrinsic part of crypto. What is the second essential concept in crypto? Holding.
In the same way, we see Asymetrix as a protocol that can achieve long-term self-sustainability, as it capitalizes on a core behavior of crypto users — holding. it’s holding with the opportunity for life-changing rewards every week.
Decentralize Ethereum
Now imagine this: with such a large Total Value Locked (TVL) in the protocol, does Asymetrix even need to use Lido’s stETH? Could Asymetrix create its own liquid staking token? This could help decentralize liquid staking and reduce Lido’s dominance in the market (as referenced by Bankless), while ASX token holders would receive additional ETH rewards directly instead of Lido’s 10% cut. It can be up to 6000 Ether to distribute per year for ASX holders if TVL would be 1m ETH.
Conclusion
So, we see that Asymetrix has the potential to be a profitable protocol and a long-term sustainable building block in the entire DeFi ecosystem.
So, how can Asymetrix achieve a TVL of 1 million ETH?
The answer is quite straightforward — incentivize users by distributing ASX tokens. This has proven to be an effective mechanism, enabling Asymetrix to grow its TVL from zero to 25 million dollars in just three months.
Once a critical mass of users is onboarded, the organic growth cycle, or ‘fly-wheel’, will kick into gear. At that point, the substantial rewards will naturally attract more users, avoiding the need for further token incentives.
However, to move to this level, we need to create demand, liquidity and utilities for the ASX token itself.
Believers benefit
So, why would users want to hold ASX tokens and even provide liquidity for them? The answer is simple — if they believe in the vision mentioned above, it is a winning strategy. True believers will gain additional incentives and benefits.
In the upcoming protocol update, the team has prepared several of exciting features for users of the Asymetrix.
Let’s dig deeper into this.
Users who will provide liquidity for ASX token on Balancer or Maverick DEXes and stake their positions on Asymetrix website from 1 to 52 weeks will be eligible to receive the following benefits:
- ASX distribution boost. If you are an ASX LP, you will earn up to 3x more rewards compared to regular users. The boost depends on the liquidity-to-deposit ratio and lock time, ranging from 1 to 52 weeks.
- Odds boost for draws. If you are an ASX LP, your odds could be boosted up to 3x compared to a regular user with the same deposit.
- ASX LPs can deposit in a pool within a pool (also known as a Mini Pool), which provides an additional instrument to adjust their winning odds for draws. They can decide to go solo as a depositor in Asymetrix or join a Mini Pool to greatly increase their chances. However, the potential reward will correspondingly be smaller.
Also, when Asymetrix migrates from Lido to its own staking solution, ASX holders will receive these rewards instead of Lido’s cut.
Last but not least is a governance right. ASX holders will have the right to vote on protocol proposals.
ASX token holders would receive dividends, have boosted odds in the rewards distribution, boosted ASX farming and be able to influence the protocol’s direction through governance. On the other hand, it will create a strong and deep liquidity for ASX token which will lead to activating the organic flywheel described above.
At present, the team is hard working on a new version of the protocol. The mentioned boosts will be a part of Asymetrix v2, where users can familiarize themselves with all the enhancements the team has prepared. At the moment the release is scheduled for September 2023. Stay tuned, as the team will be sharing more details about the new version in the near future.
Summary
As you can see, Asymetrix sets an ambitious goal for itself. However, reaching this requires a truly significant Total Value Locked (TVL). Therefore, the protocol encourages believers to take advantage of its novel mechanics, offering in return, larger profits for their valuable contributions to the protocol. Furthermore, it makes the protocol more attractive for smaller depositors, enabling them to interact with Asymetrix’s core mechanics.
Let’s spread the idea and grow side by side!
