Press Release

Divergence reveals key details on highly anticipated IDO token sale

News Desk · Sep. 8, 2021 at 2:00 pm UTC · 3 min read
Divergence reveals key details on highly anticipated IDO token sale

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Update: Due to a recent security breach of MISO, Divergence’s IDO will be held at the Balancer LBP, at 1PM UTC on 27 September. For more information, click here.

Divergence, a decentralized protocol for options and volatility derivatives, is announcing the upcoming public sale of its native token, DIVER, on SushiSwap’s MISO launchpad.

The DIVER Token

The DIVER token is the governance token of the Divergence protocol.  DIVER holders can propose and vote on governance proposals for the Divergence platform once the on-chain governance portal for Divergence is released. They can collectively decide on protocol parameters such as trading fees, the introduction of new products, features, and more.  

Importantly, DIVER will be a productive asset that gains value from the growth of Divergence protocol, as well as the markets created via its protocol. Divergence staking contract is to be released to provide more yield to long term holders of DIVER tokens. Various types of token rewards will be periodically shared amongst the stakers of DIVER.

DIVER tokens will be rewarded to community members who contribute to the Divergence ecosystem. Providing liquidity to the options markets on Divergence is one major way to gain more ownership of DIVER tokens. There will also be many more ways to earn DIVERs via community programs being introduced soon.

Token Sale Details

The token sale will distribute 2% of the overall supply of DIVER tokens through a Dutch auction on SushiSwap’s MISO launchpad.

  • When: Monday, 20 September 2021 at 09:00 AM EST / 01:00 PM UTC
  • Duration: 24 hours
  • Supply: 20M DIVER (2% of total supply)
  • Bid Currency: USDC
  • Auction Model: Dutch Auction
  • Starting Bid: $0.1/DIVER ($2M raise)
  • Minimum Bid: $0.05/DIVER ($1M raise)
  • Max, Initial Market Cap: $7.75M ($0.10 x 77.5M DIVER)
  • Min. Initial Market Cap: $3.87M ($0.05 x 77.5M DIVER)
  • Link: https://miso.sushi.com/

Dutch Auction Mechanism

Divergence has chosen to do a Dutch Auction as it facilitates fair and transparent price discovery for participants. It is also permissionless and scalable, maximizing the reach of this public sale.

A Dutch auction is a type of auction in which the token price opens at a higher price and descends over time. The eventually offered price is settled upon once all tokens are sold.

This puts the power in the hands of the auction participants to determine what price to pay and when to purchase. It accepts bids of varying value, so community members with all budgets can participate.

The starting price of the Dutch auction is $0.10 (reflective of a $7.75M initial market cap) with a floor price of $0.05 (reflective of a $3.87M initial market cap). The sale ends after receiving bids for all 20 million DIVER tokens.  At the end, all bidders will receive the same token price as the sale price of the 20 million tokens sold. Through this mechanism, the final total value of the sale is not known until sale completion.

What Happens Afterwards

After the sale, DIVER tokens will be available for trading on SushiSwap. The majority of sale proceeds and a proportional supply of DIVER tokens will be routed to a SushiSwap liquidity pool. This pool is expected to become the DIVER liquidity venue for the long term.

The remainder of sale proceeds will be reserved for liquidity events in the near future. Divergence team looks forward to upcoming token listings on major exchange venues which will make DIVER tokens accessible to a larger market.

Going Forward

Following the launch of its public beta, the Divergence team has been working non-stop to optimize its app interface based on community feedback.  In the meantime, Divergence’s codebase is being audited. Once fully audited, the team will open source code and commence bug bounty programs for its smart contracts and app. This will prepare Divergence for the next major milestone on its roadmap — the launch of Divergence V1 mainnet on Ethereum.

About Divergence

Divergence is a decentralized platform for volatility hedging and trading with a focus on blockchain native asset prices, value of LP tokens, interest rates, DeFi farming and staking rewards.

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