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Welcome to Asymmetry Finance
The Asymmetry Finance protocol has been developed as a comprehensive solution to address the issue of centralization within the staked Ether market. Namely, the risk posed by a dominant LST controlling an unsafe amount of Ethereum nodes.
Risk is mitigated through inherent diversification in the Asymmetry Ethereum Products (afETH & safETH), due to the diversified validation set inherent to a Liquid Staking Token (LST) aggregator. An LST aggregator offers users access to multiple LSTs in one product. Asymmetry Finance has meticulously chosen the best LSTs on the market to offer to users via the safETH index.
The current dominance of Lido Finance in the Liquid Staking market presents risks to the entire Ethereum ecosystem. Lido Finance controls ~32% of all Ethereum validators – network consensus can be blocked by one entity if that entity controls 33% of the network. This is a direct threat to Ethereum, one that shouldn’t even be present in a decentralized network. This also likely places negative price pressure Ethereum as the market prices in this risk. If we can decentralize the network, we protect it and unlock its further potential.
Furthermore, to attract market participants and align the decentralization of the staked Ethereum market with financial incentives, Asymmetry Finance employs a proprietary algorithm and yield generation model that offers market-leading yield in its afETH higher yield LSTfi product. By appealing to rational investors through attractive yields, Asymmetry Finance aims to establish a symbiotic relationship between investors and the greater Ethereum ecosystem.