Asymmetry Finance is a decentralized finance (DeFi) protocol operating on the Ethereum blockchain that focuses on providing products for borrowing, stablecoins, and sustainable yield generation. ^[1] The protocol's ecosystem is built upon the immutable framework of Liquity v2, which enables a key feature across its offerings: customizable fixed interest rates for borrowers. ^{[2] [3]} The platform is governed by the Asymmetry DAO through its native token, ASF, and features a range of products including the USDaf stablecoin, liquid staking derivatives like afETH and afCVX, and yield-bearing vaults. ^[1]​

History

The official X (formerly Twitter) account for Asymmetry Finance was created in January 2023. ^[3] The protocol's first product was safETH (Simple Asymmetry Finance Ethereum), an asset designed as a decentralized index representing a basket of various liquid staking tokens (LSTs). The basket included assets from protocols such as Rocket Pool, Frax, Swell, Ankr, and StaFi. ^[2]​

Subsequently, the project initiated a strategic pivot to concentrate on developing products with what it described as more innovative mechanics and higher yield potential. As a result, safETH was deprecated and placed into a "withdrawal-only mode," with development shifting towards a new suite of products including afETH, afCVX, and the USDaf stablecoin. The liquid staking derivative afCVX was noted to be "battle-tested over 2 years" as of early January 2026, suggesting its existence since at least early 2024. ^{[2] [3]}​

By the third quarter of 2025, the protocol and its core products were live and operational. Market data for its stablecoin, USDaf, indicates trading activity prior to September 2025. On September 15, 2025, the USDaf token reached an all-time high price of 0.969 on October 5, 2025. To drive user participation, the protocol also initiated a community engagement and airdrop campaign titled "The Gem Rush." ^{[4] [2]}​

In December 2025, Asymmetry Finance announced an upcoming product called Sunbeam, marketed as a "Bitcoin Savings Account." As of early January 2026, the product was still in its pre-launch phase. The team continued its community outreach by hosting an Ask Me Anything (AMA) session on January 6, 2026. ^[3]​

Core Technology and Architecture

Asymmetry Finance's technical infrastructure is centered around established DeFi primitives, notably Liquity v2, to create a system for borrowing and yield generation that emphasizes immutability and user control.

Liquity v2 Foundation

The protocol's stablecoin products, USDaf and the planned AmpUSD, are built using technology from Liquity v2, for which Asymmetry operates with an exclusive license. ^[2] This foundation provides a decentralized and immutable framework for its borrowing operations, meaning the core smart contracts are designed to be non-upgradable and censorship-resistant. A central feature inherited from this architecture is the ability for borrowers to set their own customizable fixed interest rates when minting stablecoins. This offers predictability in borrowing costs, a departure from the variable rates common in many other DeFi lending protocols. ^{[1] [3]}​

Yield Generation

The protocol generates yield for its users through several distinct mechanisms. For its yield-bearing vaults, sUSDaf and sAmpUSD, the system employs an auto-compounding strategy. It automatically allocates capital from these vaults into underlying "Stability Pools," which engage in strategies across partner protocols such as Curve, Convex, and Aura Finance to earn trading fees and liquidity mining rewards. The protocol's smart contracts automate the process of harvesting and reinvesting these earnings, compounding the returns for depositors. ^[1]​

For its liquid staking derivatives, the yield source is more specific. The afETH token, for example, generates its return by combining the base staking yield from Staked Frax Ethereum (sfrxETH) with additional yield derived from the protocol's holdings of Vote-Locked Convex (vlCVX), which are used to boost rewards in the Curve and Convex ecosystems. ^[2]​

Security

Asymmetry Finance has undergone third-party security audits to ensure the safety of its smart contracts. The protocol maintains a dedicated "Audits & Bug Bounties" section within its official documentation, where reports from these security assessments are made available to the public. ^[1]​

Ecosystem and Products

The Asymmetry Finance ecosystem consists of a synergistic suite of products for borrowing, staking, and yield optimization, including stablecoins, liquid staking derivatives, and yield-bearing vaults.

Stablecoins

The protocol features two stablecoins, one live and one in development, both built on the Liquity v2 framework.

USDaf (Asymmetry USD)

USDaf is a decentralized, over-collateralized stablecoin pegged to the U.S. Dollar. It functions as the primary stablecoin for borrowing within the Asymmetry ecosystem. Users can mint USDaf by locking up accepted collateral in a personal vault, or Collateralized Debt Position (CDP). A key feature is the ability for borrowers to choose their own fixed interest rate for the duration of their loan. The protocol accepts a variety of collateral assets, including Wrapped Bitcoin (wBTC), Threshold Bitcoin (tBTC), and other stablecoin-related assets like sfrxUSD, sUSDS, and scrvUSD. The protocol documentation describes the core USDaf contracts as "Immutable forever." ^[2]​

AmpUSD

AmpUSD is a planned inflation-resistant CDP stablecoin being developed in partnership with Ampleforth. ^[2] Unlike traditional stablecoins pegged to a fiat currency, AmpUSD is designed to provide a store of value that hedges against inflation, though the exact pegging mechanism is not specified. It will also be powered by Liquity v2, featuring customizable borrowing rates. It is intended to be the first stablecoin of its kind to be backed by AMPL and SPOT collateral. While not yet live as of early 2026, the protocol projected average yields of 15-40% for the asset. ^{[1] [2]}​

Yield and Liquid Staking Products

Asymmetry offers several products that provide users with access to yield from staking and liquidity provision.

afETH (Asymmetry Finance Ethereum)

afETH is a high-yield liquid staking derivative for Ethereum. It is designed to offer a sustainable yield of approximately 10% or more, roughly three times the standard Ethereum staking rate at the time of its design. The yield is generated through a hybrid strategy that combines the rewards from Staked Frax Ethereum (sfrxETH) with the boosted yield from Vote-Locked Convex (vlCVX) positions held by the protocol. afETH is a live product with a number of integrations across the DeFi ecosystem. ^[2]​

afCVX (Asymmetry Finance Convex)

afCVX is a liquid wrapper for the Convex Finance (CVX) token, marketed as a "CVX Supercharger." It provides holders with an auto-compounding, hands-free yield on their CVX. The product's main value proposition is that it grants instant liquidity and removes the standard 16-week lockup period required when staking CVX directly for vlCVX. The protocol claims afCVX offers the highest yield of any Convex wrapper. On January 7, 2026, the product was reported to be yielding a 33.91% APY. ^{[2] [3]}​

sUSDaf & sAmpUSD

sUSDaf and the planned sAmpUSD are yield-bearing, auto-compounding vaults for the protocol's native stablecoins. Users can stake USDaf or AmpUSD into these "set-and-forget" vaults to earn passive income. The protocol's strategy-runners optimally allocate the deposited funds across its underlying Stability Pools to generate yield, which is then automatically harvested and compounded. A key feature of these vaults is that deposits are always redeemable with no cool-down or lockup period. ^[1]​

Upcoming Products

Sunbeam

Announced in December 2025, Sunbeam is an upcoming product described as a "Bitcoin Savings Account." It is designed to provide users with a seamless, hands-free method for earning auto-compounding yield on their Bitcoin holdings. The product is being developed for both individual and institutional users. ^[3]​

Legacy Products

safETH (Simple Asymmetry Finance Ethereum)

safETH was the first product launched by Asymmetry Finance. It was a decentralized index token that represented a diversified basket of several Ethereum liquid staking tokens, abstracting away the need for users to choose and manage individual LSTs. The project later deprecated safETH to focus on its newer, higher-yield product line, and the safETH token was placed in a withdrawal-only mode. ^[2]​

Governance

The Asymmetry Finance protocol is governed by a decentralized autonomous organization (DAO), with control distributed among the holders of its governance tokens. ^[1]​

Asymmetry DAO

The Asymmetry DAO is responsible for making decisions regarding the protocol's future direction, including managing its treasury, adjusting protocol parameters, and authorizing new developments. Voting power within the DAO is determined by ownership of the veASF token. ^[1]​

Governance Tokens

The governance model revolves around three related tokens: ASF, veASF, and opASF.

ASF (Asymmetry Finance Token)

ASF is the primary utility and governance token of the Asymmetry ecosystem. Its main functions include being used to vote on governance proposals and being locked to boost yields on other protocol products. The potential for the token to accrue a share of protocol revenue has been noted as a possibility, subject to a future governance vote. ASF is available for trading on decentralized exchanges such as Uniswap and CowSwap. ^{[2] [1]}​

veASF (Vote-Escrowed ASF)

veASF is the token that represents actual voting power in the Asymmetry DAO. It is obtained by locking ASF tokens for a specified duration. Following the common "vote-escrowed" model, the longer a user locks their ASF, the more veASF they receive, granting them greater influence over governance proposals. Holders also receive a "Gems Boost" in the Gem Rush campaign. ^{[1] [2]}​

opASF (Options ASF)

opASF is a tokenized option that gives the holder the right to purchase ASF at a predetermined discount. Users can acquire opASF by paying with the protocol's USDaf stablecoin. When purchasing, the user selects a lockup duration ranging from 1 to 12 months, which corresponds to a discount on the ASF strike price of 10% to 50%. Upon purchase, the user immediately receives a portion of veASF (granting instant governance power) and a "Gems Boost," while the underlying ASF tokens are claimable at the end of the selected lockup period. ^[1]​

An illustrative example provided by the protocol describes a scenario where a user pays 7,000 USDaf for 1,000 opASF with a 182-day lockup. With the ASF market price at 7.00 (a 30% discount). The user would immediately receive 2,600 veASF and then claim the 1,000 ASF tokens after 182 days. ^[1]​

Token Details

The protocol includes several tokens, with its stablecoin USDaf and governance token ASF being central to its operations.

Asymmetry USD (USDAF)

USDAF is an ERC-20 token on the Ethereum blockchain. It is designed to expand and contract in supply based on user demand for minting and redeeming the stablecoin, and thus has an unlimited maximum supply. ^[4]​

• Blockchain: Ethereum
• Token Standard: ERC-20
• Contract Address: 0x9cf12ccd6020b6888e4d4c4e4c7aca33c1eb91f8

As of January 7, 2026, USDAF had a circulating supply of approximately 2.03 million tokens and a market capitalization of around $2.01 million. The primary trading venues for USDAF are liquidity pools on Curve Finance, with pairs against scrvUSD, BOLD, and frxUSD, as well as a pair on Uniswap V4. ^[4]​

Asymmetry Finance Token (ASF)

ASF is the protocol's native governance token. An example on the protocol's website used an illustrative market price of $10.00 for ASF. The token is available for trading on decentralized exchanges including Uniswap and CowSwap. ^[1]​

Partnerships and Integrations

Asymmetry Finance is deeply integrated with the broader DeFi ecosystem, collaborating with several key projects and building upon their technology. Its foundational technology partner is Liquity, utilizing its v2 architecture under license. The protocol also actively participates in the Liquity ecosystem by hosting a Stability Pool for Liquity's BOLD token. ^{[2] [3]}​

Other significant partnerships include:

• Ampleforth: A key partner for the development of the upcoming AmpUSD inflation-resistant stablecoin. ^[2]
• Curve and Convex Finance: These protocols are essential to Asymmetry's yield-generation strategies, particularly for its afETH and afCVX products. ^[2]
• Frax Finance: Asymmetry is a partner with Frax, offering high-yield pools for Frax's frxUSD stablecoin. ^[3]

The protocol also lists integrations with a wide range of other DeFi projects, including Aura Finance, Balancer, GMX, Prisma Finance, Redacted Cartel, Stake DAO, Llama Airforce, Yearn Finance, Alchemix, and 1inch. ^[1]​