What Is Divergence? (DIVER) Complete Guide Review About Divergence.

What Is Divergence? (DIVER) Complete Guide Review About Divergence.

What Is Divergence?

Divergence Coin is a decentralized platform for hedging, trading DeFi-native asset volatility, with its flagship product being an AMM-based marketplace trading synthetic binary options. Currently, there’s a lack of effective, easy-to-use, and versatile solutions for trading and hedging volatility of assets that exist on the different layers of DeFi applications, where users are simultaneously exposed to multiple sources of risk.

When it comes to managing price risk, existing decentralized futures and perpetual products offer linear risk exposures for a limited number of major assets. Options, on the other hand, as a less-developed product, can provide a non-linear risk-reward structure. This allows options traders to build leveraged positions in assets at a lower cost than making an outright transaction.

Divergence Coin Storage Key Points

Coin BasicInformation
Coin NameDivergence
Short NameDIVER
Circulating Supply55,702,602.00 DIVER
Total Supply500,000,000
Source CodeClick Here To View Source Code
Explorers Click Here To View Explorers
Twitter PageClick Here To Visit Twitter Group
WhitepaperClick Here To View
Support24/7
Official Project WebsiteClick Here To Visit Project Website

The platform for on-chain composable crypto options

  • Super easy-to-trade
  • Permissionless market creation, name your terms
  • Synthetic DeFi asset exposures — pick your favored collateral
  • Limited risk for both buyers & sellers
  • Effortlessly manage options expiries

What makes Divergence stand out?

Divergence cryptocurrency trading platform is designed to provide a unique experience for users. The trading platform has a simple user interface. It is built on the Ethereum mainnet, and will be compatible with L2 solutions. Users can use any ERC-20 token as collateral, including LP tokens from other DEX pools and lending protocols. Divergence tokenizes options positions as virtual tokens. Its Spear and Shield tokens are abstractions within smart contracts rather than ERC-20 tokens.

As a result, users don’t have to worry about incurring extra gas costs from transferring these tokens. In contrast, existing solutions typically require users to mint options as ERC-20 tokens, transfer these tokens to a DEX, and supply additional liquidity to make a market. On Divergence, the collateral token does not have to match the underlying asset that options are written on. So, for example, you can trade AAVE/USD options by creating a pool using USDT or WETH. 

The Arena for Battles

A unique AMM mechanism is designed allowing for liquidity providers of any size to create markets that trade synthetic derivative tokens with a binary pay-off structure on underlying asset volatility. Only one type of collateral is needed to provide liquidity and make transactions in our binary options pools. The collateral in use to fund these derivative tokens does not have to be the same as the LP-defined underlying asset, which creates synthetic exposures.

Divergence Coin At expiration, options are auto-exercised & rolled over, using collateral remained after settlement. The objective is to simplify the complex price discovery mechanism in options markets into a simple, straightforward, buy and sell experience. Divergence market participants can bet on the probable outcomes of price moves and market events that are native to the DeFi space.

DeFi Platform

Divergence is currently building its DEX on the Ethereum mainnet with plans to deploy on the Binance Smart Chain and on Ethereum L2  in the future. As they are blockchain agnostic, we can see us building where the ecosystem demands us to be.

Mainnet launch expected 

Divergence roadmap also has a lot of activities in store in Q4 2021, including its highly anticipated mainnet launch. Divergence already has a fully functioning testnet with an intuitive user interface. Its mainnet is expected to have a faster-loading interface and add-on functionalities.

Utility

Governance

Divergence DIVER would allow holders to propose and vote on on-chain governance proposals to determine future features and/or parameters of the Divergence platform. For example, DIVER holders may decide on levels of trading fees, the introduction of new products or accepted collateral, and more.

Economic Incentive

DIVER also provides the economic incentives which will be distributed to encourage users to contribute to and participate in the ecosystem on the Divergence platform, thereby creating a mutually beneficial system where every participant is fairly compensated for its efforts.

Staking

The staking contract is to be released to provide more yield to long-term holders of DIVER. Various types of token rewards will be periodically shared amongst the stakers & governance contributors.

Swap Options Tokens

Divergence Coin A specialized AMM built for binary options trading. Within the Divergence ecosystem, there are three types of participants:

  • Market makers: Provide liquidity to earn fees, option premiums, and incentives.
  • Hedgers: Purchase “Spear” or “Shield” and hold them until settlement or sell at target prices.
  • Traders: Trade “Spear” and/or “Shield” to gain volatility risk exposure per different strategies.

“Spear” and “Shield” Tokens are fungible “virtual tokens” available for trading prior to expiration dates. A healthy and active trading market for option tokens not only promotes better price discovery but also ensures proper risk transfer and mitigation. Similar to other AMM (Automatic Market Maker) DEXs, the Divergence DEX also utilizes a bonding curve model for option token pricing.

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