Asymetrix flywheel

The success model of the Asymetrix protocol is evident. Large rewards will attract more users, and more users will generate more substantial rewards, which will, in turn, attract even more users. However, this also works in the opposite direction. At the earlier stage of the protocol's life, there will be few users, and as a result, fewer rewards. This is a classic problem of a cold start.

Therefore, at the initial stage, Asymetrix is focused on attracting new users by distributing the ASX token with several difficulty levels. If the idea of Asymetrix finds a market fit and the token can only be "mined" by protocol users or bought on the secondary market, this will create value for the ASX token from the very early days. Depending on the price and liquidity of the ASX token in the secondary market, this can give a yield in ASX tokens for all participants at or above the stETH staking APR, regardless of the results of the draws.

This, in turn, will bring in new entrants to mine the ASX token, eventually increasing user deposits and starting organic growth once a critical mass of deposits is accumulated.