Asymmetry is tackling Ethereum's LST market centralization problem by encouraging decentralization of validating nodes with safETH. Lido currently runs 32%+ of all Ethereum validators, posing a threat to the consensus mechanism of Ethereum if dominance increases further. SafETH is a Liquid Staking Token offering a decentralized basket of market leading LSTs in the space. Our product has zero fees, as it is positioned to be a public good. Our approach counters the monopolistic tendencies in the current market, offering a robust solution that’s simple and accessible for all DeFi users. Asymmetry also takes on gas cost for small deposits, allowing minnows equal staking opportunity as whales. Staking with Asymmetry is permissionless, costs the lowest gas in the market, and decentralizes Ethereum’s Proof of Stake ecosystem all in one click. Through safETH and our future endeavors, Asymmetry is committed to leading the charge towards a genuinely decentralized future.

TL;DR - Asymmetry’s mission is to address and resolve the pressing issues of scalability and centralization that currently afflict the Ethereum LST market; namely, Lido’s extreme dominance that poses a risk to Ethereum. Our initiative, safETH, stands at the forefront of this mission, embodying a pioneering solution in the DeFi space.

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Purpose of safETH:

SafETH, or Safe Asymmetry Finance Ethereum, is our answer to the disproportionate control seen in the LST market, where a single entity (Lido) dominates nearly 33% of Ethereum node validators. By introducing a decentralized basket of assets, safETH decentralizes and mitigates the risks associated with such centralization, including potential regulatory actions and the dangers of a single point of failure. Our product not only promotes the foundational principles of DeFi but also ensures a safer and more stable environment for capital efficiency and yield generation via staking of assets. Asymmetry is designed to increase mutually benficial network effects across DeFi and Ethereum, while increasing decentralization of the validator set and providing users a valuable public good.

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Impact of safETH:

With safETH, we anticipate a yield of ~3.8% APY, competitive and consistent with other LSTs in the space. Our indexed approach to asset baskets is historically proven to be popular, offering diversification and reduced risks, appealing particularly to those who favor passive investment strategies. It’s greatest impact, however, lies in decentralization of the LST ecosystem as TVL scales – giving a more equitable market share to each of the leading LSTs.

Furthermore, we have pioneered a novel "premint" functionality that makes staking under 4 ETH cheaper than anywhere else, including Lido. We did this to encourage small deposits from minnows that are often overlooked market participants. To decentralize the ecosystem, we need to reduce barriers and encourage market participation from all - whale or minnow!

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Use of Funds:

The funds requested will be allocated to the development and marketing of safETH. Specific areas of expenditure include smart contract auditing, community building, and educational outreach to ensure our users are well-informed and equipped to participate in the DeFi ecosystem. A portion of funds will also go to executing an airdrop plan to reward positive action from Ethereum community members, and some funding will go towards afETH launch which will increase safETH TVL (and thus, node validator decentralization) as it scales.

Project Progress:

Since our inception, we've made significant strides. Our team has completed the initial development phase of safETH and conducted thorough internal testing. We have also cultivated a robust community presence, as evidenced by our active Discord, Twitter followership, and Substack readership. The anticipated launch of afETH is the next major milestone we aim to achieve with the help of this grant. afETH is designed to attract more TVL to the Asymmetry protocol by incentivizing good-actor behavior by aligning financial incentives (higher yield) with ecosystem incentives (decentralizing Ethereum’s validators). afETH is a risk-on product offering higher yield, whereas safETH offers market rate yield for risk-off users. afETH incorporates safETH, so as it scales it also increases the amount of safETH minted and the amount of ETH staked with market leaders that are not Lido.

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Team Expertise:

Our team is composed of seasoned professionals with deep roots in blockchain technology, cybersecurity, finance, and marketing. This diverse blend of expertise ensures that safETH is not only technically sound but also positioned for widespread adoption and success. Our team includes core contributors to Shapeshift, Thorchain, Giveth, Silo Finance, Steer Finance, Token Engineering Commons, Osmosis, Genesis Global Trading, and more. We have a vast network and stellar reputation in the space as contributors committed to providing altruistic public goods and backing ethical projects.

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Through safETH and our future endeavors, Asymmetry is committed to leading the charge towards a genuinely decentralized future.

Links

1. Website
2. Twitter
3. Medium
4. GitHub
5. Discord