What is Convergence Finance?
Convergence Finance intends to provide access to previously unavailable securities, allowing everyone who uses the platform to get exposure to real-world assets.
Convergence Financial, which debuted in 2021, is a decentralized interchangeable assets protocol that aims to connect real-world asset exposure with decentralized finance liquidity (DeFi). It effectively allows DeFi members to get real-world asset exposure.
Convergence will be the first automated market maker (AMM) in the DeFi sector to integrate new Wrapped Security Tokens (WSTs) with utility tokens over a single interface that is flexible and composable with existing DeFi protocols, making real-world asset exposure interchangeable.
Asset owners, such as private/unicorn enterprises or exotic real-world assets, can use Convergence to get access to decentralized DeFi liquidity via a Convergence Pool. Through the Convergence protocol, DeFi customers will be able to access new investment options while enjoying the superior liquidity and flexibility that comes with utilizing an AMM.
Convergence was founded by a group of professionals with experience in traditional finance, tokenization, and digital securities. The initiative was created on the assumption that in the digital assets area, the interaction between traditional finance and DeFi is becoming closer, leading to a desire for real-world asset exposure in the sector.
How Convergence Finance Work:
- Wrapped Security Tokens (WST): WST token holders can profit from real-world asset exposure from both an on-chain and off-chain standpoint, subject to the DAO’s views. Wrapped security tokens will work with the rest of the DeFi ecosystem, including open lending platforms, yield farms, and more.
- Token wrapping module: This is the token wrapping layer used to create previously wrapped security tokens (WSTs) with the above-mentioned capabilities. Convergence AMM will be injected with WSTs for trade with other digital assets.
- Convergence Pools: ConvergencePools enables asset owners with both the opportunity to simply build and manage market-making strategies
Why is Convergence Finance Unique?
All on-chain modifications must be fully reflected and enforced off-chain, and vice versa, for protocols that purport to bring real-world asset exposure to DeFi. This guarantees that stakeholders have a legitimate claim to the assets.
From a corporate and commercial standpoint, Convergence Finance has spent a significant amount of time developing this.
Ability To Access
Convergence’s ability to unleash the liquidity of security tokens by allowing almost anybody to invest and trade in securities through the usage of WSTs is one of the platform’s defining characteristics.
Asset owners can use Convergence Finance to get DeFi liquidity. Meanwhile, DeFi users will receive access to real-world asset exposure that is composable with the rest of the DeFi system, allowing for creative composability for real-world assets.
A Solid Foundation
Alameda Research, GBV, CMS Group, Kenetic Capital, and Pantera’s partner Paul Veradittakit were among the investors in Convergence Finance’s latest investment round, which was managed by the South Korean crypto fund #Hashed. Convergence is well equipped to execute its strategy, thanks to its excellent advisory board, which includes Kenetic’s Jehan Chu, Hashed’s Ryan Sung-ho Kim, and Mask Network’s Suji Yan.
Shortly after funding $300,000 in an initial DEX offering (IDO) on Polkastarter, the platform debuted its native utility token (CONV) on March 25, 2021. It is now available for purchase on OKEx, MXC, and Uniswap, as well as a number of smaller decentralized exchanges.