# Convergence Finance

> Convergence Finance is a DeFi platform enabling fractionalized trading of tokenized assets via an AMM, bridging traditional finance and digital assets with enha...

- Canonical URL: https://iq.wiki/wiki/convergence-finance
- Categories: Projects & Protocols
- Tags: DEX, DeFi, Infrastructure
- Created: 2024-08-14T16:02:05.106Z
- Last updated: 2024-08-18T04:11:26.079Z
- Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki)

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**Convergence Finance** is a [decentralized finance (DeFi)](https://iq.wiki/wiki/defi) platform that facilitates the trading and management of tokenized assets through an [Automated Market Maker (AMM)](https://iq.wiki/wiki/automated-market-maker) and other tools. It enables asset owners and investors to access [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) and investment opportunities within the [DeFi](https://iq.wiki/wiki/defi) ecosystem, bridging the gap between traditional finance and digital assets. [\[1\]](#cite-id-gexx2l8fyy)  
  
# Overview  
  
Convergence introduces an [Automated Market Maker (AMM)](https://iq.wiki/wiki/automated-market-maker) that allows private tokens to be fractionalized and traded within the [DeFi](https://iq.wiki/wiki/defi) ecosystem. This platform enables asset originators to access [DeFi](https://iq.wiki/wiki/defi) [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) while [DeFi](https://iq.wiki/wiki/defi) users gain access to previously unavailable private assets. By lowering investment barriers and integrating [DeFi's](https://iq.wiki/wiki/defi) [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity), automation, and transparency, Convergence expands access to exclusive investment opportunities for all [DeFi](https://iq.wiki/wiki/defi) participants. It also utilizes advanced AI to enhance trading algorithms, providing a secure and efficient solution for traders to optimize profitability while safeguarding their strategies. [\[1\]](#cite-id-gexx2l8fyy)[\[2\]](#cite-id-yz8che4yl8)  
  
# Products  
  
![convergence.webp](https://ipfs.everipedia.org/ipfs/QmdAkp4fcFHvqxuXieV14kfhz7deaBMxjaL5mt6FzRp54C)  
  
## Convergence Offering (ConvO)  
  
Convergence Offering (ConvO) allows asset owners to conduct [initial token offerings](https://iq.wiki/wiki/initial-coin-offering) by setting token prices and creating a swap pool, with a portion of tokens reserved for Convergence Finance to support ConvX [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity). As part of the Convergence [dApps](https://iq.wiki/wiki/decentralized-application) suite, ConvO facilitates the fractionalization of private assets through a user-friendly interface, enabling asset owners to leverage [DeFi](https://iq.wiki/wiki/defi) [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) and providing [DeFi](https://iq.wiki/wiki/defi) users with access to various investment opportunities, including private-sale tokens and fractionalized [NFTs](https://iq.wiki/wiki/non-fungible-token-nft). [\[3\]](#cite-id-ga739v8yoyq)[\[4\]](#cite-id-wg5vyipnhiq)  
  
## Convergence AMM (ConvX)  
  
Convergence [AMM](https://iq.wiki/wiki/automated-market-maker) (ConvX) facilitates 24/7 trading and price discovery of wrapped real assets. It optimizes order routing from aggregated [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) sources to ensure the best prices for traders. ConvX simplifies access for retail investors, fund managers, and digital-native investors to provide [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) and trade within pools. It operates on the [Ethereum](https://iq.wiki/wiki/ethereum) Chain with a 0.30% fee per trade, allocating 0.25% to [liquidity providers](https://iq.wiki/wiki/liquidity-providers) and 0.05% to the protocol. [\[3\]](#cite-id-ga739v8yoyq) ![convX.webp](https://ipfs.everipedia.org/ipfs/QmeX1PkSCZiaiUCyRZCcKMMTp3m7XDsZprNEZsZM5kYhPN)  
  
## Convergence Pools (ConvPool)  
  
Convergence Pools allow asset owners to create and manage market-making strategies, facilitating initial offerings and [providing liquidity](https://iq.wiki/wiki/liquidity-providers) for trading. This setup simplifies access for retail investors, fund managers, and digital-native investors to provide [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) and trade within the pools. ConvPool incentivizes CONV and CONV-[LP](https://iq.wiki/wiki/liquidity-providers) holders to [stake](https://iq.wiki/wiki/staking) their tokens, offering [liquidity providers](https://iq.wiki/wiki/liquidity-providers) 0.25% of trading fees from Convergence X and the opportunity to earn CONV rewards based on the pool's rate. [\[3\]](#cite-id-ga739v8yoyq)  
  
## Convergence DAO  
  
Convergence is governed by a [decentralized](https://iq.wiki/wiki/dao) community of CONV token holders and their delegates, who propose and vote on protocol upgrades. CONV holders with 2% of the total supply delegated to their address can submit governance proposals. [\[3\]](#cite-id-ga739v8yoyq)  
  
## Moonlit  
  
Moonlit is a [decentralized exchange (DEX)](https://iq.wiki/wiki/decentralized-exchange) built on an [Automated Market Maker (AMM)](https://iq.wiki/wiki/automated-market-maker) model, designed to work alongside Convergence Finance's existing product suite. It explores cross-chain compatibility with [Moonbeam](https://iq.wiki/wiki/moonbeam-network) and [Moonriver](https://iq.wiki/wiki/moonriver-network), while Convergence remains focused on making private-sale tokens and venture capital-style investments accessible within the [DeFi](https://iq.wiki/wiki/defi) space. Moonlit also broadens access to private-sale tokens and other novel assets, benefiting from low [gas](https://iq.wiki/wiki/gas) fees and enhanced performance on [Kusama](https://iq.wiki/wiki/kusama) and [Polkadot](https://iq.wiki/wiki/polkadot), ultimately increasing [DeFi](https://iq.wiki/wiki/defi) [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) and democratizing access to exclusive investment opportunities. [\[5\]](#cite-id-fx1fdyirf5q)  
  
### Moonlit Swap  
  
Moonlit Swap is an [Automated Market Maker (AMM)](https://iq.wiki/wiki/automated-market-maker) on the [Moonriver Network](https://iq.wiki/wiki/moonriver-network) ([Kusama](https://iq.wiki/wiki/kusama) [EVM](https://iq.wiki/wiki/ethereum-virtual-machine-evm) Chain) that enables the exchange of [crypto](https://iq.wiki/wiki/cryptocurrency) assets. Each swap incurs a 0.30% fee, with 0.25% allocated to [liquidity providers](https://iq.wiki/wiki/liquidity-providers) and 0.05% to the protocol. [\[5\]](#cite-id-fx1fdyirf5q) ![moonswap.webp](https://ipfs.everipedia.org/ipfs/QmNQ7TewmfKuKF9JKm44o27wmZk3JU4QpyyWrLitXL96qA)  
  
### Moonlit Liquidity  
  
Moonlit Liquidity enables [liquidity providers](https://iq.wiki/wiki/liquidity-providers) to create and manage [liquidity pools](https://iq.wiki/wiki/liquidity-pool), which are collections of funds locked in a [smart contract](https://iq.wiki/wiki/smart-contract) to facilitate swap transactions. Each swap in an [Automated Market Maker (AMM)](https://iq.wiki/wiki/automated-market-maker) is executed against the [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) in these [pools](https://iq.wiki/wiki/liquidity-pool). [Liquidity providers](https://iq.wiki/wiki/liquidity-providers) receive 0.25% of the trading fees from swap transactions as an incentive. [\[5\]](#cite-id-fx1fdyirf5q) ![moonliqu.webp](https://ipfs.everipedia.org/ipfs/QmeJUYomVXN5SZgJwyS4AEHqehbP67PFesnoxnj6R1DLHu)  
  
### Moonlit Farm  
  
Moonlit Farm offers yield-farming pools on Moonlit Finance, which is supported by the [Moonriver Network](https://iq.wiki/wiki/moonriver-network) and developed by Convergence Finance. It incentivizes [liquidity providers](https://iq.wiki/wiki/liquidity-providers) with competitive [APR](https://iq.wiki/wiki/annual-percentage-rate-apr) in $MLIT when they stake their Moonlit [LP](https://iq.wiki/wiki/liquidity-providers) tokens after adding [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) to the [pools](https://iq.wiki/wiki/liquidity-pool). This approach is designed to stabilize [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) and reduce slippage during token swaps. Additionally, Moonlit Farm aims to grow the Moonriver Ecosystem by introducing Community Farms in partnership with other [Moonriver](https://iq.wiki/wiki/moonriver-network) projects, offering double rewards where users can earn both $MLIT tokens and project-specific tokens. [\[6\]](#cite-id-z1pnbbogq8e) ![moonfarm.webp](https://ipfs.everipedia.org/ipfs/QmdCWicauXz5EzFBa84NQPMnoKjrRxpbG8nYFyxzam54Xa)  
  
# CONV  
  
CONV is a multi-chain [utility token](https://iq.wiki/wiki/utility-token) available on [Ethereum](https://iq.wiki/wiki/ethereum) and [Moonbeam Network](https://iq.wiki/wiki/moonbeam-network). It provides access to premium launchpad subscription pools, offers [staking](https://iq.wiki/wiki/staking) rewards in [AMM](https://iq.wiki/wiki/automated-market-maker) pools, grants governance rights for future protocol decisions, and serves as the base token for facilitating cross-chain swaps. [\[7\]](#cite-id-5cn4yzl343l)  
  
## Tokenomics  
  
![Screenshot 2024-08-14 112431.png](https://ipfs.everipedia.org/ipfs/QmSoGggBKyAS67bkW4tKFwAgtne4ABHbzpYw9iQpETpcL5)  
CONV has a total supply of 10B tokens and has the following distribution: [\[8\]](#cite-id-3wkp91tb05w)  
  
* Ecosystem: 40%  
* Strategic: 10.4%  
* Team: 10%  
* Community: 10%  
* Liquidity: 10%  
* Reserve: 10%  
* Advisors: 5%  
* Seed: 4%  
* Public: 0.6%  
  
# Partnerships  
  
* [DuckDAO](https://iq.wiki/wiki/duckdao)  
* Ellipti  
* [CertiK](https://iq.wiki/wiki/certik)  
* Hex Trust  
* [Moonbeam](https://iq.wiki/wiki/moonbeam-network)  
* Lithium Finance  
* Synaps  
* [1inch](https://iq.wiki/wiki/1inch)  
* [Chainlink](https://iq.wiki/wiki/chainlink)  
* Cere Network  
* [Celer Network](https://iq.wiki/wiki/celer-network)  
* [Biconomy](https://iq.wiki/wiki/biconomy)  
  
## Investors  
  
In February 2021, Convergence raised $2M in a seed funding round led by [Hashed](https://iq.wiki/wiki/hashed). Other investors included CMS, Kenetic, NGC Ventures, GBV, [DuckDAO](https://iq.wiki/wiki/duckdao), Paul Veradittakit, and [Alameda Research](https://iq.wiki/wiki/alameda-research). [\[9\]](#cite-id-fh2qaih435)