Divergence aims to be the decentralized market for volatility — a liquid and composable on-chain derivatives exchange for the DeFi primitive.
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 risk, existing decentralized futures and perpetual swaps offer linear risk exposures for only a limited number of major assets. Options, on the other hand, as a less-developed product, provide a non-linear risk-reward structure, allowing options traders to build leveraged positions in assets at a lower cost than making an outright transaction.
To fill this gap, Divergence is developing a range of decentralized volatility derivatives with the aim of becoming the go-to platform for:
- Risk-averse users seeking to hedge volatility risks
- Risk-tolerant users seeking to trade and gain leveraged exposure to volatility
- Risk-neutral users seeking to participate as liquidity providers and earning fees
DIVER is the utility token of the exchange, and has the following utilities:
- Governance
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
Our 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.