Asymmetry Finance, an innovative index protocol focused on the Liquid Staking market on Ethereum, has today announced its most significant upgrade to date for safETH, their index product of LSTs, coupled with the groundbreaking concept of ‘Indexfficiency,’ a gas optimization approach significantly cutting gas while staking. Cutting gas fees to just $3 to stake safETH, while getting 6 LSTs for less than the price of 1.
Since its inception, Asymmetry Finance has remained committed to achieving true decentralization across the currently highly centralized Liquid Staking market on Ethereum.
The protocol’s mission includes two fundamental pillars:
– Accessible Staking for All: Asymmetry Finance firmly believes in democratizing staking by making it easily accessible to all individuals, regardless of their technical knowledge or investment size.
– Widest Validator Set: Asymmetry Finance is dedicated to establishing the most extensive validator set spread across reputable Liquid Staking Tokens (LSTs), thus driving toward greater decentralization of safETH, and too the wider liquid staking market as safETH’s TVL grows.
Asymmetry Finance integrates three new LSTs into the safETH index.
This momentous milestone marks the expansion of the index from three to six LSTs, with the addition of Swell’s swETH, StaFi’s rETH, and Ankr’s ankrETH.
These join the existing trio of Lido’s wstETH, Frax’s frXETH, and Rocket Pool’s rETH, making safETH amongst the most diverse index/aggregator products in the Liquid Staking Ethereum market. Asymmetry Finance is making history as a pioneer of validator decentralization.Stay tuned for the AF Twitter threads this week, as they will provide in-depth coverage of each of the new LST additions.The underlying validator set of these six LSTs will serve as the backbone for afETH, Asymmetry Finance’s flagship high-yield product, slated to launch in late 2023.
Why is this important?
The enhancement of the safETH index reflects Asymmetry Finance’s goals:
– Enhanced Diversification: By increasing the number of LSTs in the safETH index, users gain more diversification, reducing the risk of staking their ETH across a broader validator set.
– Enhanced Decentralization: As safETH grows, a wider validator set ensures a fairer distribution of Total Value Locked (TVL) among LSTs and their respective validators, thereby reducing inherent security risks associated with centralization.
The index weighting is determined by several factors that optimize the user experience, including slippage and liquidity of the LST. safETH is designed to always be 100% liquid, allowing users to enter and exit without any penalties or lockups. The current index weighting is readily available on the AF dashboard.
Today, Asymmetry Finance also introduces a solution that significantly reduces gas fees for users of all sizes when staking with safETH, known as ‘Indexfficiency.’Zero user fees, combined with the lowest gas fees of any liquid staking aggregator directly incentivizes new stakers toward safETH. The back-end improvements have streamlined the routing process.
As a result, safETH appears to now be the cheapest option in the entirety of the Ethereum Liquid Staking market. Previously, Lido Finance held the record. Now, post-upgrade, a stake (< 4 ETH) of safETH clocked in at $3 (0.0017 ETH) in gas. Using 71k gwei in comparison to Lido at 91k gwei.A remarkable feat, in combination with safETH giving 100% of yield to users (zero fees). safETH is one of, if not the most, cost-effective in the Ethereum Liquid Staking market.
For users depositing less than 4 ETH:
Asymmetry Finance introduces a pre-mint functionality, where a predetermined amount of safETH is minted in advance and held in the safETH contract. Users staking below 4 ETH will receive safETH via a swap function from the safETH contract, cutting staking to just a few dollars at regular gas levels.
For deposits above 4 ETH:
No functional changes; however, various small-scale modifications have been implemented to optimize transactions and further bring down gas fees.The back-end team at Asymmetry Finance has spent over 12 months pioneering novel approaches to the growing Liquid Staking Tokens (LSTs) and LSTfi market, with a primary focus on enhancing the user experience. By prioritizing reduced gas fees while maintaining zero user fees on safETH, Asymmetry Finance offers one of the most cost-effective options to stake ETH while safeguarding Ethereum from hyper-centralization in the liquid staking market, ensuring a healthy ecosystem for all stakeholders.
What’s next for Asymmetry?
Asymmetry Finance is thrilled with the upgrade and improved gas efficiency achieved through ‘Indexfficiency.’ This represents a significant milestone in safETH’s development. Now, the excitement continues to build as the development of afETH, the high-yield flagship LSTfi product, and ASF, Asymmetry Finance’s governance token, progresses. Stay updated with the latest information and launch timelines by following Asymmetry Finance’s Twitter and Substack.
To learn more, visit: https://asymmetry.finance
For updates, follow Asymmetry on Twitter: https://twitter.com/asymmetryfin