Divergence is a cryptocurrency platform that offers a decentralized solution for hedging and trading the volatility of DeFi-native assets. Its main product is a marketplace where synthetic binary options are traded using an automated market maker (AMM) system.
Divergence stands out from other platforms in several ways. Firstly, it prioritizes true decentralization by removing any centralized authority that would determine the pricing of options. Instead, the pricing is collectively determined by the buyers and sellers through a bonding curve mechanism.
Additionally, Divergence boasts ultimate composability by providing the capability to support any asset as the underlying option, collateralized by any fungible ERC-20 token. This flexibility allows users to choose from a wide range of options and collateral assets.
The platform also emphasizes freedom of choice, as it allows liquidity providers (LPs) of any size to set the terms and customize the binary options they offer. This includes choosing the underlying assets, the collateral, the strike price, the expiry date, and the open price of a new term. This empowers LPs to tailor the options to their preferences.
Lastly, Divergence aims to be user-friendly by simplifying the process of creating an AMM pool dedicated to trading binary options. With just one step, users can set up a pool that automatically exercises and rolls over the options, enhancing convenience and ease of use.
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