Asymmetry - USDaf Yearn Vault
Asymmetry Finance offers USDaf, a decentralized overcollateralized stablecoin built on Liquity v2's immutable infrastructure. By staking USDaf into the sUSDaf Yearn Vault, users earn auto-compounded yield from borrower interest payments and liquidation premiums across all stability pools.
How USDaf and the Yearn Vault work:
- USDaf is minted by borrowing against wBTC, tBTC, sUSDS, sfrxUSD, scrvUSD, or ysyBOLD with user-set fixed interest rates
- USDaf is always overcollateralized — more collateral value backs it than USDaf in circulation
- Staking USDaf into sUSDaf (the Yearn v3 Vault) earns yield from 75% of all borrower interest fees plus liquidation collateral at ~5% discount
- sUSDaf auto-rebalances hourly across all 8 Stability Pools for optimal yield
- Uses Dutch Auctions on CoW Swap for liquidation collateral sales — oracle-free design
- Yield is fully sustainable with no governance token emissions
Asymmetry Finance raised $4M from Avon Ventures (Fidelity-affiliated), Republic Crypto, the founders of Frax and Convex, and others. The protocol is fully immutable and decentralized — no upgrades, no admin keys.
Basic Information
Fundamentals
TVL
APR
Statistics
| Weekly | Monthly | Quarterly | Yearly | |
|---|---|---|---|---|
| Period Start | N/A | N/A | N/A | N/A |
| Period End (inclusive) | N/A | N/A | N/A | N/A |
| APR | N/A | N/A | N/A | N/A |
| CAGR (APY) | N/A | N/A | N/A | N/A |
| TVL High | N/A | N/A | N/A | N/A |
| TVL Low | N/A | N/A | N/A | N/A |
Liquidity
Not calculated yet
Liquidity analysis will be available soon
Strategy
- Acquire USDaf
- Borrow USDaf by depositing collateral (wBTC, tBTC, sUSDS, sfrxUSD, scrvUSD, or ysyBOLD) and setting your own fixed interest rate
- Or purchase USDaf on open markets (DEXs, Curve pools)
- USDaf is overcollateralized and soft-pegged to $0.995+
- Stake USDaf into sUSDaf (Yearn v3 Vault)
- Navigate to the Earn page and deposit USDaf in one click
- sUSDaf is an ERC-4626 yield-bearing token built on Yearn v3 infrastructure
- Your USDaf is automatically distributed across all 8 Stability Pools
- Earn auto-compounded yield
- 75% of all borrower interest fees flow to Stability Pool depositors
- Liquidation events provide collateral at ~5% discount
- sUSDaf rebalances hourly and auto-compounds — no manual claiming
- Liquidation collateral is sold via Dutch Auctions on CoW Swap
- Withdraw anytime
- Redeem sUSDaf back to USDaf at the increased exchange rate
- Swap USDaf back to USDC or other stablecoins via Curve pools
Yield Source
Yield is generated from real protocol revenue — borrower interest payments and liquidation premiums. There are no governance token emissions or unsustainable incentives.
Primary yield sources:
- Borrower interest fees (75%): Each borrow market automatically funnels 75% of its revenue to Stability Pool depositors in USDaf tokens
- Liquidation premiums (~5%): When undercollateralized loans are liquidated, the Stability Pool acquires collateral at approximately a 5% discount, which is distributed to depositors
Yield amplification:
- If less than 75% of total USDaf supply is deposited in Stability Pools, effective yield exceeds the average borrower interest rate
- Fewer stakers = higher per-staker returns (natural yield amplification)
sUSDaf Yearn Vault advantage:
- Auto-rebalancing: Automatically allocates USDaf across all 8 Stability Pools hourly for optimal returns
- Auto-compounding: Reinvests earned USDaf and sells liquidation collateral via CoW Swap Dutch Auctions
- Oracle-free: Eliminates oracle dependency for liquidation collateral sales
All yields are fully sustainable, scalable, and real — derived from actual protocol usage rather than token emissions.
Strategy Limits
Deterministic Constraints
- USDaf soft peg target is $0.995, not $1.00 — a 0.5% baseline redemption fee applies
- Yield depends on borrower activity — if no one borrows, no interest fees are generated
- Liquidation yield requires market volatility — stable markets produce fewer liquidations
- Currently only available on Ethereum mainnet
Probabilistic Constraints
- USDaf peg depends on effective liquidations across all six collateral markets
- After liquidations, Stability Pool deposits may convert to collateral assets with price exposure
- Low Total Collateral Ratio triggers borrowing restrictions that may limit protocol growth
- Relatively low market cap (~$6.3M) means limited battle-testing at scale
Underlying Assets/Allocations
Risk Analysis
Potential Risks
Based on the official Asymmetry documentation, the following risks are associated with the USDaf Yearn Vault:
- Collateral Collapse Risk - USDaf depends on six collateral assets; a sudden collapse of any could threaten overcollateralization with no strict guarantee of recovery
- Liquidation Failure Risk - The stablecoin requires effective liquidations across all borrow markets; if liquidations fail, USDaf could become undercollateralized
- Stability Pool Depletion Risk - If Stability Pools are exhausted, fallback mechanisms (just-in-time liquidation, debt redistribution) activate, potentially spreading losses
- Depeg Risk - USDaf holders face depegging risk from all supported collaterals; Stability Pool depositors retain USDaf holder exposure
- Smart Contract Risk - Despite 10 audits, immutable contracts cannot be patched if vulnerabilities are discovered post-deployment
- Collateral Conversion Risk - During liquidations, your staked USDaf may convert to collateral assets (wBTC, tBTC, etc.) with price volatility exposure
- Low Liquidity Risk - Small market cap means limited exit liquidity during market stress; large redemptions could cause slippage
- Oracle Frontrunning Risk - Electisec audit noted that newly added oracles lack the redemption frontrunning protection implemented in Liquity v2 for rETH/stETH
Risk Analysis (3rd Parties)
Summary
Asymmetry's USDaf Yearn Vault (sUSDaf) offers sustainable yield from real protocol revenue — borrower interest fees and liquidation premiums — with no token emissions. The protocol is built on Liquity v2's immutable, decentralized infrastructure with 10 audits including formal verification by Certora. The Yearn v3 vault auto-compounds and rebalances hourly across 8 Stability Pools. However, USDaf has a small market cap (~$6.3M), is exposed to risks from six collateral types, and its immutability means vulnerabilities cannot be patched. Users should consider the protocol's early stage and limited liquidity when sizing positions.
Extensive Audit Coverage: USDaf and the underlying Liquity v2 codebase have undergone 10 separate audits from Dedaub, Electisec (yAudit), ChainSecurity, Coinspect, and Certora (formal verification), plus a $350k Cantina public audit competition. Wrapper contracts for BTC collaterals were audited twice by Electisec.
Immutable & Decentralized: The protocol is fully immutable — no admin keys, no upgradeable contracts, no governance control over core parameters. This eliminates governance attack vectors but also means bugs cannot be patched.
Battle-Tested Infrastructure: Built on Liquity v2 (proven CDP model) with Yearn v3 vault infrastructure for yield optimization. Chaos Labs provided economic modeling and simulation.
Multi-Collateral Risk: USDaf is backed by six different collateral types. A sudden collapse of any collateral asset could threaten overcollateralization. Despite compartmentalized borrow markets, USDaf holders are exposed to risks from all supported collaterals.
Low Market Cap: With approximately $6.3M in market cap, USDaf has limited liquidity and has not been stress-tested at scale. Low TVL increases the risk of liquidity crunches during market stress.
Immutability Trade-off: While immutability eliminates governance risks, it also means that any discovered vulnerabilities or economic exploits cannot be patched. The protocol relies entirely on its original design being correct.