Decentralized finance (DeFi) and liquid staking protocol Asymmetry Finance right this moment introduced that it has raised $3 million in a seed funding spherical led by enterprise capital fund Ecco Capital.
This brings Asymmetry Finance to a complete valuation of $20 million. The funding spherical additionally included Republic Capital, GMJP, and fellow staking supplier Ankr.
Asymmetry says it’s going to use the funds to develop, add expertise, and onboard extra customers and establishments to its platform, which additionally launches right this moment.
The flagship mission of Asymmetry Finance’s protocol is Easy Asymmetry Finance Ethereum (safETH), a token issued to prospects staking ETH on the platform. The protocol touts itself as user-friendly, with a “fee-free decentralized asset basket” that “immediately mitigates dangers such because the central level of failure, and a singular dominant custodian, vulnerable to doable regulation.”
Asymmetry’s protocol is hoping to pitch itself as a substitute for the decentralized Ethereum staking providers provided by platforms like Lido Finance and Rocket Pool. Whereas they invoice themselves as decentralized, their sheer reputation can rapidly make them a degree of assault for a big portion of the community.
Per Rated, a staking node operator knowledge dashboard, Lido at present has greater than 187,000 completely different nodes staking ETH. Nonetheless, these nodes are all operated by simply 30 completely different node operators, for instance.
Lido additionally instructions greater than 30% of the entire liquid staking market, with over 6.2 million in ETH at present deposited on the platform.
What’s Ethereum staking?
Ethereum first started its transition to a proof-of-stake consensus algorithm in December 2020 with the launch of its Beacon Chain. As of September final 12 months, following the profitable execution of the merge, the community has lastly left its proof-of-work days up to now.
Now, as an alternative of warehouses of mining machines working continuous to confirm transactions and safe the community, Ethereum makes use of so-called validators. With a view to develop into a validator, customers should first put up 32 ETH and preserve the mandatory {hardware} necessities. For doing so, they’ll earn an ETH-denominated yield; failing to take action, be it on account of downtime or validating fraudulent transactions, means validators are penalized.
At roughly $60,000, the 32 ETH entry barrier is steep for a lot of.
That is partly why the liquid staking scene has develop into so widespread. These protocols let anybody deposit any quantity and start incomes rewards.
Some have additionally raised the difficulty of the lion’s share of Ethereum nodes at present working on cloud providers, nearly all of that are hosted by Amazon Web Services.
