Explained: Convergence’s Enroute to the Moon with Moonlit
With the recent launch of Moonlit, we hear that some of the Convergers are puzzled by the positioning of Moonlit in the Convergence Ecosystem and we would like to clear up the air on how Moonlit will be an enroute for Convergence to the moon.
So what’s Moonlit again?
Moonlit is a cross-chain AMM powered by Moonriver, Ethereum-compatible smart contract parachain on Kusama.
Kusama is the developmental network where new features for Polkadot are tested and perfected, but it is also an environment for rapid development and innovation. Kusama can be seen as a pre-production environment of Polkadot or a “canary network”. You can imagine Kusama sitting between a “testnet” and a “mainnet” — Testnet -> Kusama -> Polkadot. You can view here for more information about the difference between Polkadot and Kusama.
With a similar concept, Moonriver first launched as a parachain on the Kusama network. Moonriver is a sister network of Moonbeam (Polkadot’s parachain), and provides an environment to test new code under real economic conditions. See here for more details of the parachain networks.
With Polkadot having Kusama as its sister network, Moonbeam having Moonriver as its sister parachain and that is why Convergence has Moonlit as her sister too.
Moonlit is a standalone AMM-based decentralized exchange (DEX) on Moonriver Network in addition to the current Convergence Finance product suite. Moonlit serves as a standalone explorative product suite on Moonriver Network for Convergence’s cross-chain compatibility with Polkadot ecosystem on Moonbeam Network when its mainnet is deployed.
What’s the difference between Convergence and Moonlit at the moment?
Convergence serves as a launchpad to bring exclusive investment opportunities in the form of private-sale tokens on Ethereum Network. Users can apply for allocation whitelisting and token subscription via ConvO, swap their future tokens via ConvX, provide future tokens liquidity via ConvPool and stake LP tokens or $CONV to earn rewards in $CONV.
Moonlit is your everyday AMM like Uniswap but leveraging the high transaction speed and low gas fee of Moonriver Network as Kusama’s parachain. Moonlit will provide token swapping, liquidity mining, cross-chain bridging and innovative yield farming to earn rewards in $MLIT.
And Moonlit will be merged into Convergence eventually?
The expansion to Moonriver will eventually lead to a merge of Moonlit into Convergence to achieve cross-chain compatibility with the technical advantages and efficiency as a parachain on Polkadot to enjoy the convenience of full Ethereum compatibility.
The existing Convergence products (ConvO, ConvX and ConvPool) are on Ethereum Network and we know that the high gas fees are demotivating for small-value transaction users. This is why Convergence is working towards a cross-chain compatibility solution with the vision of enabling Convergers to freely move the assets from Ethereum to transact on a high transaction throughput and low gas fee network via our cross-chain bridging solution for the end-to-end private-sale token launchpad subscription via ConvO, future tokens and other crypto tokens cross-chain swapping via ConvX, liquidity mining and innovative yield farming to earn $CONV rewards via ConvPool.
Moonlit is a standalone explorative platform right now due to Moonbeam’s initial deployment on Moonriver Network, eventually Moonlit’s functions will be merged into Convergence when Moonbeam Mainnet is deployed and all technical dependencies are isolated and derisked —bringing a cross-chain launchpad and AMM on Ethereum and Moonbeam network to Convergers.
Wait, we heard that Moonlit will issue $MLIT tokens?
Yes indeed, since Moonlit is a standalone platform on Moonriver and $MLIT tokens will be primarily used as yield-farming rewards and Moonlit protocol governance.
As a $CONV holder, how will I benefit from the Moonlit launch and $MLIT issuance?
As explained above, Moonlit will be an explorative enroute for Convergence to build its cross-chain compatibility ecosystem before the direct deployment in Moonbeam Network. $CONV will continue to serve as the native token of Convergence Ecosystem, with the current utility of staking for ConvO premium pool access, staking for ConvPool rewards and future governance voting — $CONV will also extend its utility as a cross-chain engine, as a $CONV staker, you will be able to enjoy airdrop rewards of our cross-chain AMM explorations and share the protocol fee of swap transactions on Moonlit, more details to follow.
While we’re developing a core part of Convergence’s cross-chain compatibility via Moonlit as the pioneer, Convergence’s cross-chain compatibility will not just include Polkadot or Kusama ecosystem but also other native or EVM compatible chains in the future. Convergence Team is constantly on the hunt to bring more exclusive private-sale token offerings and will continue to optimize the user experience on Convergence DApps.
About Convergence Finance
Convergence is the first AMM to make private token interchangeable in the DeFi space by fractionalizing them using a single easy-to-use interface and composable with other DeFi protocols. Convergence enables originators to take advantage of DeFi’s liquidity, while DeFi users can access exotic private exposure 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 exclusive investment exposure to all DeFi users.