Divergence 's first product is an AMM based binary options market that is immediately scalable and easy to use. Traders can trade synthetic binary options tokens on
Main features of Divergence include:
Increased capital efficiency: Providing liquidity on multiple chain positions is inefficient in terms of capital. Options sellers generally over-collateralize their positions to maintain their positions in DEX. On Divergence, the issuance of options and market making take place in a single asset AMM pool. Liq Liquidity providers can provide capital using LP tokens from lending protocols like Aave. Selling a binary call and binary put only requires a collateral of 1x and does not involve liquidation. This is because the maximum loss per binary option sold is predetermined and reserved by Divergence smart contracts.
Extended DeFi Asset Trading Options: Divergence provides liquidity providers much more flexibilitythan other solutions. They can write binary options of a selected strike, expiration and underlying with any fungible token as collateral. This includes tokens from Ethereum-based DEXs like Sushiswap and Uniswap V3. This feature means that LPs no longer have to allocate additional capital to create an options market.
Automated reversal mechanism . Many derivative platforms have firm terms for option contracts. Upon expiration, an options market may no longer exist. Divergence's solution is to automatically renew option contracts with similar conditions after their settlement. This ensures the continuity of the options market for LPs. Liquidity providers can save gas since they don't need to remove and add liquidity to create a new market. This feature is onlyent available on Divergence.
How Divergence works
Divergence has already posted a Testnet version of its marketplace on the Ethereum kovan testnet. The whole user experience is simple and straightforward.
To integrate, users simply connect a supported wallet like MetaMask to the Divergence test app. At the moment, Divergence supports two types of binary options. These include options with a single strike and options with a range strike. These options are symbolized as Spear and Shield tokens on Divergence. Options with a single strike allow users to receive a guarantee if the price of the underlying becomes above or below the single price level. Range strike options pay out a guarantee when the underlying is established in or outside a specific price rangeifique.
One of Divergence 's main innovations is that binary options are abstractions symbolized in smart contracts. This allows users to save on gas costs that would have been incurred if these derivative tokens were ERC-20 tokens. Traders can easily roll over options when they expire without having to create new pools and spend gas. The novations improve the overall trading experience and allow users to easily trade DeFi options.
What to expect
Divergence has a governance token called DIVER. DIVER holders can vote on protocol settings and receive rewards from staking activities. Protocol recently announced details of its highly anticipated IDO. On September 20, 2021, it will launch a public sale of 2% of its DIVER tokens on SushiSwap's MISO launch pad. Participants can becomethe first holders of DIVER tokens and will have the opportunity to claim from a pool of 256 non-fungible DIVΞR tokens . Following the IDO, Divergence is expected to create its DIVER liquidity pool on SushiSwap and conduct additional token lists on other exchange platforms.
Following its IDO and token lists, Divergence plans to launch its mainnet once the audit is complete. With the launch of the Mainnet, traders will have access to decentralized options markets for more assets, more collateral choices and an improved interface.