Divergence, a decentralized protocol for options and volatility derivatives, is announcing the upcoming public sale of its native DIVER token on SushiSwap’s Miso launchpad.
The DIVER token
The DIVER token is the governance token of the Divergence protocol. DIVER holders can propose and vote on governance proposals for the Divergence platform once the on-chain governance portal for Divergence is released. They can collectively decide on protocol parameters such as trading fees as well as the introduction of new products, features and more.
Importantly, DIVER will be a productive asset that gains value from the growth of the Divergence protocol, as well as the markets created via its protocol. The release of Divergence’s staking contract would provide more yield to long-term holders of DIVER tokens. Various types of token rewards will be periodically shared among the stakers of DIVER.
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 DIVER tokens via community programs, which would be introduced soon.
Token sale details
The token sale will distribute 2% of the overall supply of DIVER tokens through a Dutch auction on SushiSwap’s Miso launchpad.
When: Monday, Sept. 20, 2021, at 9:00 am EST or 1:00 pm UTC
Duration: 24 hours
Supply: 20 million DIVER (2% of total supply)
Bid currency: USD Coin (USDC)
Auction model: Dutch auction
Starting bid: $0.1 per DIVER ($2 million raise)
Minimum bid: $0.05 per DIVER ($1 million raise)
Maximum initial market capitalization: $7.75 million ($0.10 x 77.5 million DIVER)
Minimum initial market cap: $3.87 million ($0.05 x 77.5 million DIVER)
Dutch auction mechanism
Divergence chose 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 this 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 final offered price is settled upon once all tokens are sold.
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 values so community members with all budgets can participate.
The starting price of the Dutch auction is $0.10 (reflective of a $7.75 million initial market cap) with a floor price of $0.05 (reflective of a $3.87 million initial market cap). The sale ends after receiving bids for all 20 million DIVER tokens and all bidders will receive the same token price as the sale price of the 20 million tokens sold at the end. Through this mechanism, the final total value of the sale is not known until sale completion.
What happens afterward
After the sale, DIVER tokens will be available for trading on SushiSwap. The majority of sale proceeds and a proportional supply of DIVER tokens will be routed to a SushiSwap liquidity pool. This pool is expected to become the DIVER liquidity venue for the long term.
The remainder of the sale proceeds will be reserved for liquidity events in the near future. The Divergence team looks forward to upcoming token listings on major exchange venues which will make DIVER tokens accessible to a larger market.
Following the launch of its public beta, the Divergence team has been working non-stop to optimize its application interface based on community feedback. In the meantime, Divergence’s codebase is being audited. Once fully audited, the team will open-source code and commence bug bounty programs for its smart contracts and app. This will prepare Divergence for the next major milestone on its roadmap — the launch of the Divergence v1 mainnet on Ethereum.
Divergence is a decentralized platform for volatility hedging and trading with a focus on the value of liquidity provider tokens, blockchain native asset prices, interest rates, decentralized finance farming and staking rewards.
Telegram announcement: https://t.me/divergenceannouncement