The Psychological Impact on DeFi

By: Asymetrix Protocol Loading...



Asymetrix Protocol has introduced a new approach to staking in the decentralized finance (DeFi) space. By adding an element of chance and unpredictability, the protocol aims to inject excitement and engagement into the staking process. In this article, we will explore the potential psychological implications of Asymetrix Protocol on individuals and the broader DeFi ecosystem. We will delve into how this approach may influence human behaviour, motivations, and perceptions within the realm of staking.

The Quest for Excitement:

Human beings are inherently driven by excitement and the pursuit of rewarding experiences. Traditional staking protocols, while offering a reliable method for earning passive income, often lack the thrill and excitement that captivate individuals. Asymetrix Protocol addresses this psychological need by introducing the chance to get a substantial staking reward, even with a relatively small deposit. This element of surprise and potential for a significant windfall incentivizes individuals to actively participate and engage with the protocol.

The prospect of a large reward greatly impacts decision-making processes. Even with an understanding that the odds are low, the absence of risk to the principal significantly shifts the behavioral patterns of the average individual. This is supported by extensive research into the success of Premium Bonds in the UK. The anticipation of a potentially life-changing reward stimulates participants' motivation, creating a sense of excitement and engagement. This psychological aspect of chance contributes to a more immersive and emotionally satisfying staking experience.

The very mechanics of Asymetrix is pretty simple. In a nutshell it looks as follows. Users deposit their stETH into Asymetrix. Asymetrix accumulates the stETH from users into a pool. Since stETH is a liquid staking rebase token, the pool balance grows daily by an amount equal to the earnings of the total pool from liquid staking (about 5% per year). Once a week, the amount earned by the pool is distributed not among all the participants, but among only a few selected at provably fare random manner. This way, someone might end up with a huge APR on their deposit, while others may not receive their potential reward for their stETH. Regardless, the user's deposit always remains untouched.

Looking a bit deeper:

The functioning of Asymetrix Protocol involves several key steps that ensure the seamless operation of the platform. Let's delve into each step in detail:

Step 1: Deposit and Minting

Users begin by depositing their stETH tokens into the Asymetrix protocol. Upon deposit, the protocol creates Pool Share Tokens (PST) in a 1:1 ratio to the deposited stETH. These PST tokens represent the user's ownership share in the protocol and are promptly sent to their wallet. It's important to note that the current version of Asymetrix has a minimum deposit requirement of 0.1 stETH.

Step 2: Accumulation of ETH Staking Rewards

Once the deposit is made, the protocol starts accumulating ETH staking rewards. The balance of stETH within the protocol grows at the prevailing Lido Annual Percentage Rate (APR) speed, which is updated every 24 hours. This ensures that the rewards steadily accumulate over time.

Step 3: Randomized Distribution of Yield

At regular intervals, specifically every 604,800 seconds (approximately once a week), a random draw occurs to distribute the accumulated yield among users. The frequency of the draw can be adjusted by the decentralized autonomous organization (DAO). The selection of winners is randomized using Chainlink VRF, a reliable solution for generating verifiable randomness. The odds of winning dynamically change in real-time, enhancing the unpredictability and excitement of the process. Users' initial deposits automatically roll over to subsequent draws, eliminating the need for manual re-entry.

Step 4: Automatic Reward Allocation

Winners of the draw receive their rewards automatically in the form of PST tokens. The amount of PST received corresponds to the quantity of stETH won. By receiving rewards, the user's PST balance increases, thereby boosting their chances of winning in future draws. As a result, users need not manually claim their rewards after each draw since the allocation process is executed automatically.

Step 5: Withdrawal Flexibility

In the final step, users retain the flexibility to withdraw their initial deposits at any time. When a user decides to withdraw, Asymetrix Protocol facilitates the conversion of their existing PST tokens back into stETH tokens at a 1:1 ratio. This ensures a seamless and fair withdrawal process. Asymetrix is a non-custodial protocol, meaning users maintain complete control over their funds throughout the entire process.
Asymetrix has been operating on the Ethereum network for two months, and during this time, the protocol has managed to accumulate an impressive $18 million in Total Value Locked (TVL). As a result, a weekly distribution of staking rewards worth 7 stETH (approximately $12,000.00 USD) is already taking place.

However, Asymetrix has ambitious plans and a global vision for its protocol within the DeFi ecosystem. The ultimate goal is to establish a million-dollar rewards fund on a weekly basis, denominated in USD equivalent. This would truly represent a paradigm shift in staking, allowing for the adjustment of reward distribution settings within the pool by the DAO's decision. For example, this could involve offering a few life-changing rewards along with a larger number of smaller prizes. Achieving this requires a significant increase in TVL. How can this be accomplished? The key lies in the ASX token. Asymetrix has already implemented a rewards program for early users' participation in the protocol. However, the team is actively working on integrating the token into the protocol's mechanics.

A few more points about the protocol...

Fostering Engagement and Retention:

Traditional staking protocols often suffer from low user engagement and retention rates due to the repetitive and monotonous nature of the process. Asymetrix Protocol addresses this challenge by infusing excitement into staking. By introducing an element of chance and unpredictability, the protocol maintains users' interest and keeps them actively involved. The psychological reward of anticipation and the potential for a significant windfall increase user engagement, leading to higher retention rates within the Asymetrix ecosystem.

Psychological Motivators:

Asymetrix Protocol leverages psychological motivators to reinforce the habit of accumulation. The element of chance and the potential for significant rewards create anticipation and excitement among participants. This psychological stimulation can serve as a motivator to continue staking and accumulating assets within the protocol. The allure of potentially life-changing rewards, coupled with the familiarity of premium bond-like accumulation, can significantly impact users' motivation to maintain the habit of depositing and accumulating their digital assets.

The Influence of Social Factors:

Human behavior is influenced by social factors, including peer interactions and the desire for social recognition. Asymetrix Protocol's unique reward distribution system can foster a sense of community and camaraderie among participants. Users may engage in discussions, share their experiences, and celebrate the success of the lucky winners within the community in Asymetrix Discord and Twitter. This social element creates a positive feedback loop, further enhancing the overall user experience and encouraging greater participation within the protocol.

Perception of Fairness:

Fairness is a crucial psychological factor in any reward-based system. While Asymetrix Protocol introduces an asymmetrical reward distribution, it aligns with the philosophy of embracing chance and unpredictability. Participants understand that the protocol's design is intended to create excitement and potentially life-changing opportunities. This awareness contributes to the perceived fairness of the system, as users willingly accept the risk and appreciate the equal chance given to all participants. An individual’s chances of winning is determined solely by a formula that calculates their time-weighted average balance, or TWAB. Once the TWAB-based tickets are generated via a Hacken-audited smart contract, Chainlink then randomizes them. Results are then posted to the Asymetrix site to ensure transparency.


Asymetrix Protocol's approach to staking brings a fresh perspective to the world of DeFi. By incorporating elements of chance, excitement, and asymmetrical reward distribution, the protocol taps into fundamental psychological drivers. It caters to individuals' innate desire for excitement, engagement, and the pursuit of rewarding experiences. By embracing these psychological aspects, Asymetrix Protocol has the potential to reshape the staking landscape and attract a new wave of participants seeking.