UPDATE: Due to a recent security breach of MISO, Divergence’s IDO will be held at the Balancer LBP, at 1 PM UTC on 27 September. Please refer to this link for more information
Divergence, a decentralized protocol for options and volatility derivatives, is announcing the upcoming public sale of its native token, DIVER, on SushiSwap’s MISO launchpad.
For the past three months, Divergence has seen a massive growth in its community. We’ve grown from being a little-known project, to one with tens of thousands of social media followers. We wish to express our gratitude toward all Divers — partners, investors, family, friends, and everyone who has been with us since the beginning of our journey. None of what we do would have been possible without your support!
Since its inception, Divergence has been built for the people — an open, permissionless, derivatives exchange owned by its users. We have done the heavy-lifting of our development work and now the launch of our V1 product is within view.
At this point of our journey, we believe the time has come to answer the long-awaited question: “Wen Token™️?” And we’re excited to share that the time is near!
The DIVER Token Economics
The DIVER token is the governance token of the Divergence protocol. It is designed to empower our community members to vote and decide on the future direction of our protocol. Importantly, DIVER will be a productive asset that gains value from the growth of our protocol, as well as the markets created via our protocol.
Governance:
DIVER holders can propose and vote on governance proposals for the Divergence platform once the on-chain governance portal for Divergence is released. DIVER holders can vote and decide on protocol parameters such as trading fees, introduction of new products, features, and more. We believe this to be key in the future development of the Divergence platform.
Incentivization:
DIVER tokens will be rewarded to community members who contribute to the Divergence ecosystem. Providing liquidity to the options markets on Divergence is one major way to gain more ownership of DIVER tokens. There will also be many more ways to earn DIVERs via community programs being introduced soon.
Staking:
Our staking contract is to be released to provide more yield to long term holders of DIVER tokens. Various types of token rewards will be periodically shared amongst the stakers of DIVER.
Token Sale Details
Our token sale will distribute 2% of the overall supply of DIVER tokens through a Dutch auction on SushiSwap’s MISO launchpad.
When: Monday, 20 September 2021 at 09:00 AM EST / 01:00 PM UTC
Duration: 24 hours
Supply: 20M DIVER (2% of total supply)
Bid Currency: USDC
Auction Model: Dutch Auction
Starting Bid: $0.1/DIVER ($2M raise)
Minimum Bid: $0.05/DIVER ($1M raise)
Max, Initial Market Cap: $7.75M ($0.10 x 77.5M DIVER)
Min. Initial Market Cap: $3.87M ($0.05 x 77.5M DIVER)
Link: https://miso.sushi.com/
Dutch Auction Mechanism
We have chosen to do a Dutch Auction as it facilitates fair and transparent price discovery for participants. It is also permissionless and scalable, maximizing the reach of our public sale.
A Dutch auction is a type of auction in which the token price opens at a higher price and descends over time. The eventual offered price is settled upon once all tokens are sold. Participants have the option to hold out until the price of the token decreases to a level they are comfortable with. In doing so however, they face an increasing risk of the token selling out before they commit to purchase.
This puts the power in the hands of the auction participants to determine what price to pay and when to purchase. It accepts bids of varying value, so community members with all budgets can participate (not just whales).
The starting price of our Dutch auction is $0.10 (reflective of a $7.75M initial market cap) with a floor price of $0.05 (reflective of a $3.87M initial market cap). The sale ends after receiving bids for all 20 million DIVER tokens. At the end, all bidders will receive the same token price as the sale price of the 20 million tokens sold. Through this mechanism, the final total value of our public sale is not known until sale completion.
What Happens Afterwards
After our public sale, DIVER tokens will be available for trading on SushiSwap. We will route the majority of our proceeds and a proportional supply of DIVER tokens to our SushiSwap liquidity pool. This pool is expected to become our liquidity venue for the long term.
The remainder of our sale proceeds will be reserved for liquidity events in the near future. We look forward to upcoming token listings on major exchange venues which will make our DIVER tokens accessible to a larger market.
Our Funding Mechanics
Divergence is honored to have received support from a diversified base of investors and backers, who are disclosed in our prior announcements. Being strict with our fundraise hard-cap and overall valuation, we unfortunately have not been able to accommodate all investment interest. The funding rounds prior to our public sale have been completed with contributions of stable coins, and the details are as follows.
|
Fundraise |
Amount Raised | Price | % of Supply | Valuation |
| Seed Round | $900,000 | $0.018 | 5.00% | $18,000,000 |
| Private Round | $2,000,000 | $0.025 | 8.00% | $25,000,000 |
| Strategic Round | $700,000 | $0.035 | 2.00% | $35,000,000 |
| Total | $3,600,000 | 15% |
For all of our prior funding rounds and the upcoming public round, we adhere to our general principles of maximizing DIVER token ownership distribution, as well as openness and fairness to all participants. Additional details on our token distribution and release schedules can be found in our public documentation. A maximum of 7.75% of our overall token supply is expected to be initially circulated in the market.
Going Forward
Following the launch of our public beta, we have been working non-stop to optimize our app interface based on community feedback. In the meantime, our codebase is being audited. Once fully audited, we will open source our code and commence bug bounty programs for our smart contracts and app. This will prepare us for the next major milestone on our roadmap — the launch of our V1 mainnet on Ethereum.
We look forward to seeing a flourishing volatility market in DeFi and welcome your participation. Please join us and dive together!
About Divergence
Divergence is a decentralized platform for volatility hedging and trading with a focus on blockchain native asset prices, value of LP tokens, interest rates, DeFi farming and staking rewards.
Follow us
?Website: https://www.divergence-protocol.com/
?Twitter: https://twitter.com/divergencedefi
?Telegram: https://t.me/divergenceprotocol
?Telegram Announcement: https://t.me/divergenceannouncement
?Youtube: https://www.youtube.com/c/DivergenceProtocol
?Discord: https://discord.com/invite/v96fhsPfRa
