Convergence is a decentralized protocol that will allow its users to swap real-world assets and DeFi tokens. With its interchangeable and compatible asset protocol, Convergence unlocks liquidity, incentivizes token holders, and opens up new possibilities to support stablecoins and other protocols in the ecosystem. CONV is the native ERC-20 token of the Convergence Protocol.
The protocol eliminates the need for intermediaries or central exchanges by connecting the Wrapped Security Tokens (WSTs) with UTs on a single network. This not only solves the liquidity issue but also removes entry barriers for retail investors. Unlike traditional markets, Convergence protocol considers both on-chain and off-chain perspectives, to help direct liquidity sources and allow accurate price discovery for users.
The main functionality of the protocol lies in its ability to wrap tokens. Convergence’s token wrapping module creates a wrapping layer to convert a normal sheet into a wrapped asset. These converted tokens are introduced to the AMM infrastructure of the protocol.
Convergence is built on Ethereum, and its infrastructure eases the whole process of asset exposure to the end-user. As it is also EVM compatible with chains like Binance Smart Chain, it can effortlessly release more liquidity into the network. The decentralization element for this protocol is its pools and DAOs.
CONV token holders have the ability to make their markets using Convergence pools. With a DAO, they will get governance rights and can decide on future WSTs that should be added.
By integrating Convergence with Moonbeam, Convergence will be the first interchangeable AMM in the Polkadot ecosystem. For liquidity purposes, they partnered with 1inch network. To make the protocol more transparent, they announced to incorporate Chainlink VRF.
The native token of Convergence protocol, CONV, has a total supply of 10 billion. The Convergence team unlocked 60 million CONV tokens by hosting a public sale via an IDO. The platform used is Polkastarter, a cross-chain built on Polkadot. CONV tokens were priced at $0.005 per token, raising $300k in total.
In terms of token distribution and release, the bulk (40%) of the total supply will go into the Convergence ecosystem. Early supporters in the community get 10% of the supply. Another 20% is used for maintaining liquidity and developing strategic sales. Founders and other advisors get a combined 15% of the supply. The remaining is allotted for investors who participated in the seed sale.
The CONV charts show a sharp decline in price in Q1,2021, and it is now moving sideways. As the protocol is still in its early stages, the price of CONV tokens depends mainly on the partnerships with other protocols and user growth every quarter.
Convergence Protocol is co-founded by Oscar and Ivan Yeung. Oscar started his career working as a research analyst for hedge funds and equity global markets. Before starting Convergence, he was a co-founder at a company called Liquefy.
Ivan Yeung obtained his degree in Computer Science from Simon Fraser University. After working at IBM, he led product development roles at Axon Driver Solutions and Liquefy. In 2021, Ivan met with Oscar and started working towards building the Convergence protocol.
This project is backed by several well-known investors, including NGC Ventures, Genesis Block Ventures, Alameda Research, CMS Group, Kinetic Capital, and Pantera's partner Paul Veradittakit. The seed round helped the team raise a total of $1.5 million.