Unraveling Asymetrix Stable staking rewards + lottery gameplay, a new LSDFi protocol that stimulates users’ gambling instincts

Unraveling Asymetrix Stable Staking Rewards and Lottery Gameplay Introducing LSDFi, a Protocol that Blends Staking and Gambling for User Stimulation

Author: VIKTOR DEFI

Translation: Shenzhen TechFlow

The allure of winning is always a key factor in keeping sports fans loyal. It’s what generates and sustains people’s passion for the game. And it’s not just limited to sports, it extends to premium securities as well.

A typical example is premium bonds in the UK, where over 23 million people have invested over 120 billion pounds. Research has shown that the success of premium bonds in the UK is attributed to two reasons: first, investors have no fear of losing their capital; and second, the thrill of winning.

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Similarly, in recent months, ETH staking has seen rapid growth, attracting a large number of developers and users. However, the average annualized return on ETH staking is only 4-5%, and the staking and reward distribution process lacks excitement. That’s where Asymetrix Protocol comes in.

“Our team has come up with a protocol that allows you to earn multiple times the annual interest rate on ETH staking, even with a small deposit. And a little bit of luck,” said Rostyslav Bortman, Chief Technology Officer of Asymetrix.

What is Asymetrix?

Asymetrix is not your typical LSDfi project; it’s an innovative staking protocol that’s full of excitement and luck. It’s a decentralized, non-custodial protocol specifically designed to support asymmetric reward distribution. Built on Ethereum, Asymetrix allows users to earn high returns through ETH staking.

As mentioned earlier, Asymetrix draws inspiration from the success of premium bonds in the UK. It takes cues from the traditional success model and provides new opportunities in the crypto space, encouraging users to stake ETH to win huge rewards. In the months following its launch, the project quickly became the leading TVL (Total Value Locked) LSDfi protocol, clearly demonstrating the market fit of its product and the effectiveness of its bonding model.

Technology: How does it work?

You might be curious about how Asymetrix works. Let’s take a practical example: 200 users deposit one stETH each into the Asymetrix protocol, totaling 200 stETH. The pool then generates 10 stETH as staking rewards. Asymetrix collects and randomly distributes 10 stETH to a user. The lucky winner can earn up to 500% staking rewards, while the other 199 stakers, although they don’t earn any rewards, can still keep their initial deposits.

Step 1: Deposit and Mint

First, users deposit stETH into the Asymetrix smart contract. The protocol mints Pool Share Tokens (PST) at a 1:1 ratio to the user’s stETH deposit and sends them to their wallet. The minted PST confirms the user’s deposit, reflects their share in the pool, and is redeemable. As of the time of writing, the minimum deposit threshold for the Asymetrix protocol is 0.1 stETH.

Step 2: Profit Distribution

Over time, Asymetrix accumulates rewards from the stETH staked and distributes the earnings to the winners. Every 604,800 seconds, approximately one week, a random lottery draw takes place. The algorithm then randomly selects and rewards the winners, assisted by Chainlink VRF.

No one can influence the lottery outcome, not even the DAO. The chances of winning for each user are determined by the Time-Weighted Average Balance (TWAB) formula, which calculates the user’s contribution to the pool and the time their deposit stays between two lottery draws. Subsequently, Chainlink’s VRF generates a random number and matches it with the selection to determine the winners.

Step 3: Winners

After the lottery draw concludes, the winners automatically receive PST rewards (equivalent to the amount of stETH won). This increases their balance and provides an opportunity to win rewards in future lotteries. Users can withdraw their tokens at any time and have full control over their funds.

So far, Asymetrix has distributed 87.95 stETH to 28 lucky stakers through weekly lotteries over a span of 14 weeks. This allows stakers the opportunity to achieve what is known as an Annualized Return Rate in a single lottery draw compared to traditional staking.

Token Economics

ASX is the governance and utility token of Asymetrix. The total supply is 100 million tokens, with 50% allocated to the community, 25% to investors, and 25% to core contributors. The team has reserved 10% of the community’s 50% for incentivizing early protocol users.

Hacken, a renowned crypto auditing firm, has audited Asymetrix. Additionally, they are running an ongoing bug bounty program to help secure the platform and reward bug hunters.

Recently, the protocol announced the release of Asymetrix 2.0. While V1 was impressive, V2 brings more comprehensive improvements to the ASX token design. Three upcoming features in V2 are particularly noteworthy: esASX, BOOST, and Mini Pools.

As the name suggests, esASX stands for escrowed ASX and technically holds the same value as the governance token, ASX. EsASX is a non-transferable token designed for long-term purposes and project sustainability. Users will need a 100-day vesting period to convert their esASX to ASX at a 1:1 ratio, as this will help mitigate selling pressure and deter early dumping.

With the arrival of V2, esASX will become the default token for early user incentives and will be distributed in the next phase of incentive allocation. The token distribution for the second phase of early incentives is divided into two parts. 1,000,000 esASX/ASX will be distributed to all users depositing in Asymetrix as before. The remaining 3,000,000 esASX/ASX is specifically designed for users to receive BOOST in the esASX/ASX allocation.

Asymetrix’s V2 introduces two novel boost mechanisms: ODDS BOOST and esASX BOOST. Whenever users provide and lock liquidity in the Asymetrix smart contract, they will receive ODDS BOOST, which increases their chances of winning in the weekly lottery. On the other hand, esASX BOOST is an additional reward given to liquidity providers to enhance the distribution of esASX tokens.

Mini pools can be seen as a support group that allows small depositors to fully participate in the Asymetrix ecosystem. In essence, mini pools are a collective made up of small deposit users who pool their funds to participate in the weekly lottery. Additionally, rewards are distributed to participants based on their share in the pool.

Summary

In the early days of decentralized finance, people primarily joined for the sake of trying out a new and increasingly popular internet financial system. However, now they join mainly for better returns and the thrill of winning. Imagine getting a huge 500% profit and the excitement that comes with it.

Even if you don’t win, you will still get back your initial deposit and some esASX/ASX rewards. In the long run, this model will enjoy the same economies of scale as premium bonds in the UK. With growing statistics and the upcoming V2 release, Asymetrix’s leadership in the LSDfi narrative is only a matter of time.

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