A Brief Analysis of Asymetrix: A Non-Symmetric Yield Distribution Protocol Based on LSD
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A Brief Analysis of Asymetrix: A Non-Symmetric Yield Distribution Protocol Based on LSD
The Asymetrix protocol enables individuals with a small amount of ETH to enter the exciting LSDfi world, where they can enjoy high returns and randomness through an asymmetric yield distribution.
Navigating Web3 tides with focused insightsFor individual investors with limited capital, the annualized yield from ETH staking is typically only around 5%, which is insufficient to generate strong investment interest. Their primary motivation for entering the cryptocurrency market is often the pursuit of higher returns. Asymetrix offers them an opportunity through a fair and transparent mechanism that concentrates all stakers’ earnings and distributes them to a small number of lucky participants, enabling these winners to achieve outsized returns, while other stakers simply get their principal back without any yield.
How the Protocol Works
1. Users deposit staked ETH (stETH) into a public pool backed by a smart contract. Once a user deposits into the Asymetrix protocol, the smart contract mints PST (Pool Share Token) at a 1:1 ratio and sends it to the user’s wallet. The PST token represents the user's share in the protocol and is required for withdrawals. In the current version of the protocol, the minimum deposit amount is 0.1 stETH. However, deposits do not need to be exact multiples of 0.1 stETH (e.g., 0.11234 stETH is acceptable).
2. The public pool generates yield every 24 hours; this yield is periodically distributed (currently once per week) among pool participants in a random and asymmetric manner.
3. Based on each user’s proportion of the protocol’s TVL, all users receive ASX tokens as an initial distribution reward.
4. In the event of a win, users automatically receive rewards in the form of PST (equivalent to the stETH amount), increasing their balance and thereby automatically increasing their chances in future draws. There is no need to manually claim rewards—they are distributed automatically.
Winning Probability Calculation
Since the protocol accumulates yield over time, a key metric is how long a user’s stETH remains in the pool and how much yield it generates for the protocol. Otherwise, large whales could make massive last-minute deposits, gain disproportionate odds, and effectively “steal” rewards from smaller users.
Therefore, the first factor influencing odds is TWAB (Time-Weighted Average Balance). This metric reflects a user’s contribution to the total pool yield generated between draws. If draws occur weekly, a user who stakes 100 stETH for one full week (i.e., 100% of the time) will have a TWAB value of 100. The TWAB value determines the number of lottery tickets a user holds. The total number of tickets is calculated by summing all users’ TWAB values and dividing by the minimum deposit amount (then taking the floor). Each user receives a proportional number of tickets based on their share of the total TWAB. All tickets are then hashed to generate unique IDs. The protocol requests a random number from Chainlink VRF, takes the modulo of the returned value to ensure it falls within the ticket range, and matches the result to the ticket list to select the winner.
Governance
The protocol uses AXS tokens as its governance token. By holding AXS, users can participate in governance by proposing and voting on various parameters and strategies affecting protocol operations and performance. For example, users can decide how many participants will receive yield shares in the weekly draw, how the yield should be distributed among them, how protocol funds should be managed and allocated, and what additional features or improvements should be implemented.
Token Value Capture
AXS token is intended to serve as both the governance token for the Asymetrix protocol and a vehicle for capturing the value of protocol growth. However, according to the current documentation, the protocol lacks a clear business model or fee structure and does not charge any fees from the yield it generates. This means all profits from yield distribution are passed directly to users who deposit stETH into the protocol, while AXS token holders receive no rewards or dividends from protocol revenues. Consequently, there is little inherent demand or utility for the AXS token within the protocol, and its value relies entirely on speculation or governance participation.
Summary
The protocol enables individuals with small amounts of ETH to enter the exciting LSDfi space, where they can enjoy high returns and randomness through asymmetric yield distribution. The protocol is also easy to use—users simply deposit stETH into the smart contract and wait for the weekly draw. However, the token economics still have significant room for improvement, as the ASX token lacks a clear value proposition or incentive mechanism to align the interests of users, developers, and governance participants.
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