Staking

Minting safETH simply requires users to bring ETH to the Asymmetry dApp and stake it with a few clicks. The ETH is then divided into the appropriate proportions of the underlying Liquid Staked Token (LST) products, and in exchange, the user receives safETH tokens.

During the acquisition of the underlying LST products, Asymmetry employs optimization techniques to maximize value and minimize costs for the user. For instance, if a particular LST product is trading at a discounted price on the open market, Asymmetry will purchase that product instead of directly going to the protocol associated with it to deposit and mint the tokens.

This approach ensures that the user benefits from cost-effective transactions and optimized value generation throughout the minting process.

Here are the processes in slightly greater detail.

Staking:

First, user stakes ‘sends’ ETH into safETH contract and mints the equivalent safETH ERC-20 token amount as receipt of deposit. This ETH is then instantly deposited in the ‘derivative contracts’ (Lido, Frax, Rocketpool, Ankr, Stafi, Swell). Currently this is done via AMM as not all underlying derivatives allow for unstaking via beacon chain at this moment.

Unstaking:

To unstake, user reverses this process. They unstake, and their safETH tokens are burned. The ETH that was staked into the derivative contracts is unstaked or swapped via AMM back into ETH and returned to the user.

Limitations

At this time, staking into safETH requires a minimum of 0.05 ETH and a maximum of 200 ETH in a single transaction. These limitations are in place to provide the most seamless experience possible. These limitations may change in the future.

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