Asymmetry Finance

Asymmetry Finance is a DeFi protocol offering borrowing against BTC and stablecoins at customizable fixed interest rates, powered by Liquity v2. The protocol features a dual stablecoin system with USDaf (transactional stablecoin) and AmpUSD (inflation-resistant stablecoin), plus additional yield products including afCVX for Convex optimization and afETH for enhanced Ethereum staking yield.

USDaf stablecoin yield comes from two main sources:

1. Interest payments: When borrowers pay interest, 75% of that revenue goes automatically to people who deposit in the Stability Pool. They receive their share in USDaf.
2. Liquidation gains: If a loan becomes under‑collateralized, the protocol uses USDaf to buy the collateral at a discount (around 5%). The profit is paid in the type of collateral that was bought.

The system uses two tokens: USDaf for everyday transactions, and sUSDaf (staked USDaf) for earning yield. sUSDaf is a vault (built with Yearn Finance) that automatically spreads your deposit across eight separate Stability Pools, each for a different collateral type: wBTC, tBTC, sfrxUSD, sUSDS, scrvUSD, ysyBOLD. Because each borrowing market has its own Stability Pool, risks are kept separate.

afCVX earns yield through a vault that uses CVX tokens in two strategies:

• CLever CVX Strategy (about 80% of funds): Locks CVX in the CLever Protocol, borrows a token called clevCVX against it, and deposits that into the Furnace to gradually convert back to CVX.
• Convex Staking Strategy (about 20% of funds): Stakes CVX in Convex’s Rewards Pool to earn cvxCRV, which is then swapped back to CVX when yields are collected.

The vault charges a 10% performance fee on the harvested yield and a withdrawal fee when you exit.

afETH generates yield by combining staked Frax Ethereum (sfrxETH) with vote‑locked Convex (vlCVX). This leverages the Curve and Convex ecosystems to aim for a sustainable yield of around 10% or more on ETH.

AmpUSD (not yet launched) is designed as an inflation‑resistant stablecoin backed by AMPL and SPOT collateral. It targets yields averaging 15–40% using mechanics similar to the USDaf system, with borrowing rates that users can customize.

All of these yields are described as fully sustainable, scalable “real yield”—they come from actual protocol activity, not from printing new governance tokens or requiring lockups. Fee structures include performance fees on yield (e.g., afCVX’s 10%), revenue splits (e.g., USDaf’s 75% to Stability Pool depositors), and withdrawal fees where they apply.

Asymmetry Finance is backed by four primary investors as displayed on the official website: Fidelity Investments, Republic Capital, Frax, and Side Door Ventures. The website shows these logos under a "Backed by" section but does not disclose specific funding round details, amounts, or dates.