Asymmetry and Ampleforth Launch afUSD Stablecoin Aimed at Decentralizing Market

UTC by Temitope Olatunji · 3 min read
Asymmetry and Ampleforth Launch afUSD Stablecoin Aimed at Decentralizing Market
Photo: Freepik

afUSD is designed to be an alternative to centralized stablecoins like Ethena.

Asymmetry Finance has joined forces with Ampleforth and Paid Network to launch afUSD. This new product is a synthetic stablecoin built on Ampleforth’s infrastructure. The older stablecoins depend on collateral like currencies that back them. However, this new one has its own unique mechanism that adjusts its supply to determine its price.

afUSD Expected to Compete with Ethena

afUSD is designed to be an alternative to more centralized stablecoins like Ethena. It was created to offer high yields and scalability and also have features that protect it from market volatility while at the same time ensuring decentralization and security. Since this new stablecoin won’t depend on collateral, it will use rotating AMPL tranches to ensure scalability and stability within the system.

Asymmetry Finance founder Hannah Jojo elaborated on this, explaining that their goal is to strengthen the use of synthetic dollars by offering solutions that uphold the tenets of DeFi and can compete with more centralized options like Ethena, which she suggests are controlled by the wealthy. She stated:

“We’ve proven what we can do by engineering the best place to liquid stake CVX on the market. Our primary target now is to improve the synthetic dollar market and offer a more DeFi native option compared to more centralized competitors like Ethena. DeFi has slowly become an investor’s playground rife with plutocracy; we want to break this cycle of greed.”

The initial profit from afUSD is expected to be as high as 35.4%, and it also aims to compete with the already big $3 trillion stablecoin market.

The two protocols involved in creating this product have a shared goal of making DeFi solutions that are sustainable and geared toward users’ needs. Ampleforth co-founder Evan Kuo expressed his delight about the partnership with Asymmetry and is eager to keep making such collaborations for innovative solutions.

“Asymmetry is pioneering new financial markets on top of the ever-growing pool of staked assets. We believe this is an enormous opportunity in DeFi and are proud to invest in the team. We look forward to collaborating closely with their ecosystem to continue innovating this category,” he said.

This is not the first time Asymmetry has introduced a similar solution. The protocol successfully launched the afCVX liquid staking product for Convex, which gained over 1,000,000 million in total value locked in its first week. The company also plans to expand its Liquid Restaking Token (LRT) and Liquid Staking Token (LST) offerings by introducing afeETH for Ether later this year.

Partnership with Asymmetry

Asymmetry also partnered with Paid Network, which appreciates the protocol’s potential to cause a major change in the stablecoin industry. The partnership with Paid Network is expected to open up its community members to more than $1,5000,000 in ASF tokens on June 12. Paid Network’s general manager Justin Chevalier also expressed confidence in this collaboration. He said:

“We are delighted to be an early public enabler and play a pivotal part in one of the most promising rising stars within the DeFi space and strongly believe that Asymmetry Finance will disrupt the stablecoin market. Their priority to put the majority of their network’s tokens in their users’ hands is a callback to our industry’s early days’ ethos.”

So far, Asymmetry has raised more than $4 million from investors, which will help it realize its roadmap. The website also serves as a place to learn about its solutions and assess the early funding pool through Paid Network.

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