How Does CONV Gain You Access to Pre-IDOs? ...

How Does CONV Gain You Access to Pre-IDOs?

Overview

Converging the investment world and the crypto space in a decentralized manner is one of the main goals of Convergence Finance. Convergence’s mainnet launch has already commenced, and the protocol is one step closer to realizing its goals. What does that mean for CONV — the native token of Convergence Finance? For CONV holders, what exactly is the investment exposure they will get, and what opportunities will they be able to unlock?

IDO: A Lucrative But Rare Investment Opportunity

Allowing users to have real asset exposure is one of the unique features of Convergence, and pre-IDO could be the most interesting one among all. First, let’s have a quick revision on IDO.

Similar to IPO, or Initial Public Offering in the stock market, IDO — Initial Dex Offering, is a process in which a crypto project launches its token through a decentralized platform. The idea is similar to a private company offering shares to the public in a new stock issuance.

It’s not hard to understand how significant the potential could be when participating in an IDO as an investor. Data from Cryptorank shows that the returns on some of the IDOs could easily go double-digit. In some cases, it could mean over 100x returns of the original investment. Among all the major IDO platforms, projects debuted on DAO Maker and Polkastarter tend to outperform those launched on other platforms.

Figure 1a: Returns of Some Notable IDOs. Source: Cryptorank.Figure 1b: Avg. Curr.
Returns Since IDO by Platform. Source: Cryptorank.

Although investing in IDOs could bring fruitful results, heavily oversubscribed IDOs have recently become more common in the DeFi space. However, participating in one could be more challenging than many people thought. In many IDO cases, the maximum allowed number of people who can participate in an IDO event is usually very low due to various technical factors. Still, one simple thing that everyone understands is that the more people participate, the harder it is to be whitelisted, especially those hot IDOs.

Convergence Offering: The Way to Access Pre-IDO

Convergence Finance could break this deadlock by “front-running” it with ConvO, or Convergence Offering.

ConvO is the offering platform of Convergence Finance. It can offer exotic private assets to all the DeFi users, and pre-IDO is one of those assets. So, in this case, ConvO can wrap SAFTs as an NFT, fractionalize it, and make the pieces tradable on ConvX, Convergence’s AMM.

SAFT, or Simple Agreement for Future Tokens, is an agreement between early-stage crypto project developers and their investors. Investors buy blocks of pre-listed tokens at a discount from developers as a form of funding the project. These tokens are usually bound by SAFTs. Despite having certain limitations, if someone owns the SAFT, he or she owns those discounted block tokens.

Convergence Finance has secured some SAFTs from high-quality early-stage crypto projects and will make them available on ConvO. Users can take advantage of this mechanism and have exposure to fractionalized SAFT, which is essentially exposure to pre-IDO tokens. That way, Convergence’s users will be able to go one step ahead of the majority in the market.

Advantage of Holding CONV

While Convergence can offer unparalleled investment opportunities to all the DeFi users, CONV holders are eligible to receive additional perks.

Those who hold 50,000 CONV or more will entitle a “premium access” to the upcoming pre-IDO offerings on ConvO, which means that they will be given a higher priority when participating in the sales events on ConvO.

In addition, Convergence Finance would like to reward those who provide liquidity to the Convergence ecosystem. So, CONV holders who have been staking their CONV tokens in ConvPools will also be able to get a higher priority in the future pre-IDO offerings on ConvO.

For more information on ConvO and the eligibility of “premium access,” please refer to the official announcement from the Convergence team.

Figure 2: ConvPools Landing Page. Source: convx.conv.finance/staking

Conclusion

For the everyday DeFi users, having simple access to exotic private assets is no longer just a vision. With the forthcoming debut of ConvO, Convergence Finance is expected to bring actual disruptions to the DeFi space. For the first time, the public will have access to meaningful investment opportunities unavailable to them before. This could also be an important moment for CONV and CONV holders.

About Convergence Finance

Convergence will be the first AMM to make private assets interchangeable in the DeFi space by fractionalizing them using a single easy-to-use interface and composable with other DeFi protocols. Convergence enables asset own ers to take advantage of DeFi’s liquidity, while DeFi users can access exotic real-world assets unavailable to them before. Convergence Finance combines the edge of a lowered investment entry barrier with the liquidity, automation, and transparency features of DeFi to bring real-world asset exposure to all DeFi users.

Official Links:

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