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Asymmetry and Ampleforth Launch afUSD to Challenge Ethena’s Synthetic Dollar

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Asymmetry and Ampleforth Launch afUSD to Challenge Ethena's Synthetic Dollar

In 2024, the United States dollar is demonstrating robust performance, and the market for digital assets tied to the currency is also thriving. One notable player in this arena is Ethena’s synthetic dollar, known as USDe, which boasts a market capitalization nearing $3.4 billion. This success is drawing attention from various competitors eager to tap into the global stablecoin market. Among the latest entrants into this competitive field is Asymmetry Finance.

Asymmetry Finance has announced the launch of a new fully onchain synthetic dollar called afUSD, in collaboration with Ampleforth and Paid Network. This innovative stablecoin features an elastic supply that adjusts based on market conditions, a system that leverages Ampleforth’s supply-adjustment mechanism. This mechanism skillfully modulates the token supply to achieve a targeted price. Asymmetry claims that this system offers enhanced security and scalability compared to similar products on the market, including Ethena’s USDe.

A representative from Asymmetry emphasized that their system is robust against disruption. Unlike other stablecoin systems, it does not rely on oracles, which can be susceptible to manipulation. The representative stated, “It’s important to understand that there are no breaking conditions. The system can bend but not break.” This resilience makes afUSD a compelling alternative in the algorithmic stablecoin sector.

The team behind Asymmetry’s initiative brings together individuals with experience from various reputable crypto firms, including Genesis Global Trading, Quantstamp, and LayerZero, among others. This diverse expertise aims to ensure that afUSD is both secure and scalable.

Algorithmic stablecoins maintain their value using a set of predefined rules, or algorithms, targeting a specific price—typically that of a fiat currency like the U.S. dollar. In contrast to traditional stablecoins, which are backed by reserves of low-risk assets, algorithmic stablecoins depend entirely on these algorithms for price stabilization. Historically, similar crypto products have struggled to achieve stable pegs.

The most notorious failure in the field of algorithmic stablecoins was the collapse of TerraUSD (UST) in May 2022. Designed to maintain its peg through an interplay with another token, Terra (LUNA), 1 UST could always be traded for $1 worth of LUNA and vice versa. During a market downturn, a massive sell-off led to the hyperinflation of LUNA, triggering a death spiral. The value of both tokens plummeted, wiping out billions in market value and instigating months of upheaval in the crypto industry.

Asymmetry asserts that its elastic model is designed to withstand such financial stress. By utilizing Ampleforth’s AMPL, afUSD eliminates the need for conventional collateral and the risks associated with it. Its fully onchain nature also enhances decentralization and security, according to the company spokesperson.

The spokesperson pointed out that Ethena’s USDe, despite its current market leadership, cannot scale infinitely. As a result, they believe users will inevitably look for alternatives, making afUSD a promising option in the expanding stablecoin market.

27 thoughts on “Asymmetry and Ampleforth Launch afUSD to Challenge Ethena’s Synthetic Dollar

  1. Another algorithmic stablecoin? Didn’t we learn anything from TerraUSD’s catastrophic collapse? The market doesn’t need another risky gamble!

  2. afUSD seems to address many past issues with algorithmic stablecoins. Can’t wait to see its impact!

  3. Why risk it all with untested financial models? Remember the havoc TerraUSD caused. Its just not worth it.

  4. Asymmetry Finances afUSD is a testament to the ongoing innovation in this space. Heres to a bright future!

  5. With afUSD addressing scalability and security, the future looks promising for Asymmetry Finance! Cant wait to see whats next.

  6. Ethena’s USDe has been great, but afUSD from Asymmetry Finance looks like the next big thing!

  7. The collapse of TerraUSD should have been a lesson for everyone. Launching afUSD is just asking for history to repeat itself.

  8. Elastic supply just sounds like code for unpredictable nonsense. Why would anyone trust afUSD after what happened with TerraUSD?

  9. The trust in algorithmic stablecoins is already shattered. Why would anyone want afUSD when history shows they have a high likelihood of failing?

  10. So excited seeing the US dollar showing such strength in 2024! And afUSD could be a real game-changer in stablecoins!

  11. 2024 is heating up with afUSD’s entry into the stablecoin market! Asymmetry Finance really bringing the A-game. 🔥 🌍

  12. Great to see Asymmetry Finance entering the stablecoin race! afUSDs resilience against disruptions is a huge plus!

  13. Asymmetry claims their system is robust against disruption, but it’s hard to believe after so many supposedly robust systems have failed. I’ll pass.

  14. A lot of potential here with afUSD! Asymmetry Finance could be on to something big.

  15. The future of digital assets is here! afUSD’s fully onchain approach could redefine stablecoins. 🌐 🔥

  16. Algorithmic or not, these stablecoins are a ticking time bomb . Ethenas USDe seems far more reliable by comparison.

  17. So many exciting developments in the stablecoin space! afUSD could set a new standard for algorithmic stablecoins.

  18. Really interesting to see how afUSDs onchain model will play out. Kudos to Asymmetry Finance and their partners!

  19. Loving the innovation in the stablecoin market! Asymmetry Finances approach to a synthetic dollar is genius!

  20. Market conditions change fast, and if afUSD adjusts based on them, it seems like a disaster waiting to happen. How can they guarantee stability? 🚩

  21. Digital assets need to gain trust, not push risky ventures like afUSD. After Terra, many of us arent willing to take another gamble.

  22. Amazing insights into the future of stablecoins! Asymmetry Finances afUSD sounds game-changing!

  23. Wow, afUSD’s approach to stability without oracles is mind-blowing! Can’t wait to see how this evolves.

  24. Excited to see how afUSD will rival Ethena’s USDe! This competition can only mean better things for the stablecoin market.

  25. Asymmetry Finances team and their experience bring so much credibility to afUSD. Exciting times ahead!

  26. Asymmetry Finances approach with afUSD could pave the way for more secure and scalable stablecoins!

  27. Asymmetry Finance is shaking things up in the crypto world! afUSD’s unique model offers a lot of promise. 🚀

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