What makes afETH unique?

afETH is Asymmetry’s flagship - A hybrid LST product of over 18 months of rigorous effort, back-testing, and innovative design.

afETH harnesses the power of Curve & Convex to successfully generate market-leading yield. Asymmetry believes in real yield that is truly sustainable. This is achieved through the ‘Asymmetrical Allocation Algorithm (AAA)’ - a novel yield generation mechanism that splits user deposits in order to achieve the proper allocations for creating sustainable real yield. The automated process breaks user deposits into sfrxETH and CVX, which is locked as vlCVX and entered into the Votium Vote Market to be used in optimizing rewards. Vote-locked Convex is a desirable asset as the votes direct the massive amount of Curve that Convex has acquired towards a given Curve Pool. Because of this, protocols compete in the marketplace to bribe users to vote for them. The vlCVX within afETH is allocated to the highest bidder.

Asymmetrical Allocation Algorithm (AAA)

When a user makes a deposit into Asymmetry, the AAA calculates the portion of the deposit to be used for purchasing CVX, which is then locked as vlCVX, and thus used for voting to channel sufficient CRV emissions (rewards) towards the frxETH-afETH Curve Pool to attain the target pool yield. The CVX remains locked for 16 weeks, in accordance with Convex Finance terms, however users retain full ownership of their entire deposit and have the right to withdraw it, along with their afETH, as ETH, mirroring the original deposit process. The optimal AAA for afETH has been set to 30% vlCVX and 70% sfrxETH, earning the user optimal yield for an LST hybrid product without taking on exorbitant risk.

User rewards consist of CRV emissions directed to the frxETH-afETH Curve Pool and vlCVX yield from Convex platform fees.

Since user rewards are predominantly paid in CRV tokens, yield may experience slight fluctuations with market prices. It's crucial to grasp how market movements can influence the allocation of user deposits. Over the past year, CRV and CVX token prices have exhibited a strong price correlation of .95, which mitigates the risk of price volatility and disparities between two uncorrelated assets.