Divergence Protocol
Decentralized AMM for permissionless crypto options trading.
| Date | Investors | Amount | Round |
|---|---|---|---|
| - | investor investor investor investor investor | €0.0 | round |
* | $2.9m | Seed | |
| Total Funding | 000k | ||
Divergence Protocol is a decentralized platform for trading and hedging volatility, with a focus on digital native assets, that was founded in 2021. On July 14, 2022, it was acquired by PROOF.
The protocol enables the permissionless creation of digital options markets for any ERC20 fungible asset, which can serve as both collateral and the underlying asset. It operates as an Automated Market Maker (AMM) that is an evolution of Uniswap V3, designed to enhance capital efficiency for DeFi options. The platform's peer-to-peer smart contract infrastructure facilitates the tokenization, swapping, and settlement of digital options on Ethereum and EVM-compatible chains. Users can create custom digital options markets, swap calls or puts, and provide liquidity to passively earn premiums and fees. The protocol's key features include no liquidation risk, as all options are fully backed, and the potential for up to 99x leverage, with risk and reward known upfront.
Divergence has raised a total of $2.9M in funding over two rounds, with its first funding round on June 9, 2021. The company held an Initial DEX Offering (IDO) on September 20, 2021, on SushiSwap's MISO launchpad. The protocol is backed by investors such as Mechanism Capital, KR1, Huobi Ventures, and AscendEx.
Keywords: decentralized derivatives, digital options, volatility hedging, automated market maker, AMM, DeFi, permissionless markets, crypto options, ERC20, volatility trading, on-chain options, liquidity pools, risk management, yield enhancement, DIVER token, blockchain native assets.