What is Convergence (CONV) – Bitfinex blog

What is Convergence (CONV)

The gap between traditional and modern finance is narrowing, bridged by the innovation in blockchain technology and decentralised finance (DeFi) that takes place every day. Private assets are getting digitised, and legal ownership rights are redefined with utility tokens that benefit from high liquidity and creative composability. 

The Convergence Protocol is a pioneer in making private assets interchangeable in the DeFi space by fractionalising them with an easy-to-use interface and composable with other DeFi protocols. This enables originators to take advantage of deep DeFi liquidity, while DeFi users can access private exposure unavailable to them before.

We are happy to announce that we are going to conduct a Convergence Staking Airdrop. Read more about the campaign here.

Convergence (CONV)

The Convergence Protocol aims to solve customers’ problems by creating a robust DeFi ecosystem to provide access to quality projects and Initial Dex Offerings (IDO) in a secure and compliant environment, utilising infrastructure built on its native CONV tokens. It enables cross-chain compatibility to maximise liquidity across different chains so users can interact with projects and transact beyond the ERC20 standard.

How does Convergence work

The product suite of Convergence Finance consists of four main components (ConvO “Convergence Offering”, ConvX “Convergence Swap”, ConvPool “Convergence Pool”, and ConvDAO “Convergence Decentralised Autonomous Organisation”) and is available on Ethereum and Moonbeam Network.

• The ConvO platform aims to provide investment opportunities that are traditionally inaccessible to retail investors, such as crypto projects that are in the incubation stage and private sales of existing prominent projects at a discounted price. 
• ConvX and ConvPool, in turn, perform price discovery and trading for unique assets and introduce them, or converge them, into the world of DeFi.

• ConvDAO and Asset Council are intended to act as protocol governance and decision-maker to decide on the new asset offering and Convergence Protocol development. 

Aiming to solve the problem of low throughput and high transaction fees in the Ethereum network, Convergence built its products with EVM-compatible solutions and other native chains such as Moonbeam and Solana. The higher transaction throughput and faster block time of the alternative blockchains make price oracle updates synchronise in real-time and mitigate the front-running risk in ConvX. On top of this, this cross-chain ecosystem deepens the total liquidity and extends Convergence’s user base in the DeFi universe.

In the long term, Convergence Finance will continue to tokenise as many assets as possible and democratise them to DeFi users. By combining private assets with the liquidity, automation and transparency features of DeFi, the Convergence Protocol synthesises the worlds of traditional finance and DeFi.

Why is Convergence unique

Many private assets, including pre-IDO tokens, private sale tokens, NFTs, and other traditionally hard-to-access assets are illiquid. Convergence’s goal in this situation is to bring or ‘converge’ these private assets with DeFi liquidity. 

The Convergence team has a vision that both asset owners and DeFi users can access the advantages of DeFi liquidity. The Convergence Protocol aims to improve the efficiency of liquidity and capital usage. Asset holders can gain more exposure to fundraising, increase trading volume, liquidity and price discovery by wrapping their assets on a blockchain (the wrapped assets can be traded on Convergence AMM). 

Moreover, individual investors can have access to assets that have not been available to them before: for example, investment opportunities of pre-IDO tokens that haven’t been publicly listed on the exchanges from the private vested tokens’ investors. Through Convergence offerings (ConvO) and Convergence Swap (ConvX), DeFi users can trade the token assets on the Convergence Protocol.

What is CONV token

CONV is a multi-utility token used as the medium of exchange between participants on the Convergence Protocol. In holding CONV, holders and stakers can make use of the different aspects of the Convergence ecosystem. As an access token, CONV entitles users to certain exclusive privileges within the protocol. Depending on the amounts staked, users are classified into different tiers and granted a different set of privileges to utilise the protocol.

Convergence Protocol itself is a blockchain protocol which, by design, does not offer any resources for utilisation. So to provide users easy access to CONV and for the project to run efficiently, users need to be incentivised to play the role of liquidity providers and stake their digital asset pairs into liquidity pools to provide the necessary liquidity for transactions. As compensation for opportunity cost, these liquidity providers that help promote adoption will be rewarded with CONV, according to each user’s relative contribution after various adjustment and correction parameters.

Besides, CONV tokens empower holders to create and vote on on-chain governance proposals to determine future features and parameters of Convergence Protocol (e.g. voting on new assets, listing on exchanges, and any liquidity thresholds to be maintained). 

Last but not least, as the native protocol token, CONV may be used as a basic unit of account for peer-to-peer (P2P) transactions, settlement of cross-chain trades and kickstart the AMM experience on EVM compatible AMMs. 

Convergence Tokenonomics and Supply

Convergence Roadmap

Q1 2022 

• ConvX & ConvPool on Moonbeam; 
• Yield-Farming of CONV on Moonbeam; 
• ConvO on Moonbeam with ƒLUNA private-sale; 
• Discord server roles.

Q2 2022

• Premium Convergers Program launch; 
• Biconomy Trading Competition.

Q3 2022

• ConvO on Moonbeam with ƒGLMR private-sale; 
• Subgraph Migration from Ethereum to The Graph’s mainnet; 
• Bitfinex Exchange Listing.

Q4 2022 

• ConvDAO and Asset Council set up; 
• ConvO 2.0 upgrade; 
• Private-sale token offerings.

Convergence Team

The Convergence core team currently based in Hong Kong consists of more than 20 people. It is led by two project co-founders, Oscar Yeung and Ivan Yeung.

Oscar Yeung — Co-Founder — brings his expertise in tokenisation to the world of DeFi. He is also an active investor in the venture capital and private equity space. Spending time in traditional finance and now moving into DeFi, he has experienced both the innovation and limitations of security tokens and now sees the growth and demand for real-world assets in the DeFi.

Ivan Yeung — Co-Founder — is responsible for the product growth and development of the protocol. He has a strong background in Security Token Offerings, smart contract development and blockchain knowledge. He developed his software product knowledge from his time at an autonomous driving simulation startup, where he started the first driving simulator centre in the city. 

Convergence Partners

• Celer Network
• 1Inch
• The Graph
• Chainlink
• Biconomy
• Cere Network
• Moonbeam
• Ellipti
• Mask Network
• Hex Trust
• Certik