Comment on page
Asymetrix is a decentralized, non-custodial protocol for asymmetric yield distribution generated from staking.
See how it works in practice: let's say 100 users deposit 1 ETH each into the Asymetrix smart contract, resulting in a total of 100 ETH. These 100 ETH generate an additional 5 ETH over time as a staking reward. Asymetrix collects these 5 ETH and distributes them in a provably fair manner to one user only. All 100 users keep their initial deposits of 1 ETH each, but some users receive 0% staking rewards, while the winner receives 500%. It's exciting.
ETH staking may be exciting for large stakers, but it may not be the same for smaller ones. To illustrate, the development team, who are also stakers themselves, explored various options along with thousands of other retail users, and realized that there are several issues with ETH staking that average users may not appreciate
In their opinion, the main problems are: 1. The technical complexity of individual staking and high entry-level.
2. If you hold a small amount of ETH, a 5% yield may not be so attractive. Most people come to the crypto industry because of the possibility of earning much more compared to traditional finance.
3. The tedious nature of the process itself.
Problem 1 has been solved by various liquid staking providers (such as Lido, RocketPool, Coinbase, and others), but problems 2 and 3 still make ETH staking a humdrum, unattractive process for average holders. Asymetrix idea is to solve all three problems.
To describe the mechanics of the process in a nutshell, it works like this:
- Users deposit staked ETH (stETH) into a common pool powered by a smart contract;
- The common pool generates yield every 24 hours;
- The yield generated from this pool is periodically (currently once a week) distributed by the protocol between pool participants randomly and asymmetrically;
- In any outcome, users keep their initial deposits and are exposed to ETH price going up, cultivating savings behavior;
- All users receive rewards in ASX tokens as an initial distribution according to their stake in the protocol's TVL and emission schedule. See more details in the ASX token distribution section;
- Users always have access to their deposits and can withdraw them at any time.