Announcing Our Updated DIVER Token Sale

Published in

Divergence Protocol

8 min readSep 21, 2021

Divergence is announcing its updated IDO after a careful reassessment. Our DIVER token sale will happen on Monday, 27 September at around 1 PM UTC, via Balancer’s Liquidity Bootstrapping Pool (LBP).

Summary

The sale will last for approximately 24 hours, starting from 01:00 PM UTC September 27, 2021, ending at 01:00 PM UTC September 28, 2021. It's not based on a first come first serve basis, it’s not a race, and won’t close out early.
30 million DIVER tokens (3% of the token supply) will be available for purchase. However, due to the AMM mechanism, the tokens are not likely to be sold out entirely, and undistributed tokens will go into our reserves, which only start to unlock 1 year after token generation.
Divergence’s LBP will start with a token price of $0.1, which indicates a $100 million fully diluted valuation and the price will be auto-adjusted lower overtime per the LBP mechanism.
Token price can go as low as $0.009 if there is no buyer during the 24-hour period. This is the theoretical price floor of the Divergence LBP and is effectively half of our seed round token pricing, representing a $9 million fully diluted valuation.
DIVER tokens can be purchased with USDC, and you need ETH to pay gas. There’s no maximum or minimum amount of tokens set for purchasers. However, watch out for the price slippage and an increase of your purchase cost, if you are swapping a substantial amount.
Each participant will pay his own price as he swaps USDC for DIVER tokens against our pool on Balancer, and each purchase will drive up the token price, affecting the purchase costs of later participants.
Theoretically, the price can be higher than $0.1, if accumulative buying demand exceeds the consistent downward pressure per the LBP mechanism. However, you should not FOMO as the future price is always uncertain and might go down if no one continues buying.
It is an open and permissionless launch mechanism. To read more about the Balancer LBP basics and structure, feel free to check out the original Balancer article.

Our LBP parameters are listed below:

DIVER Token Address:

0xfb782396c9b20e564a64896181c7ac8d8979d5f4

👴Please only follow our official channels for updates, and reach out to the team and admins at our channels if you need help.

LBP Pool Address:

https://pools.balancer.exchange/#/pool/0x53f863e835722533c5832944da75a69f78f0018e

⚠️ Be watchful of fake listings and scams. Please do not respond to any DMs. Please do not buy DIVER tokens without verifying the token address and LBP pool address.

Why Balancer LBP?

A Balancer pool is a Uniswap-like pool that supports up to 8 assets with preset weights. Balancer’s Liquidity Bootstrapping Pool (LBP) is a special pool that automatically adjusts its pool weights over time. This applies downward pressure on the token price.

The Balancer LBP has the following key features:

Disincentivize front-running: As DIVER price is auto-adjusted lower over time, bots are not able to profit from buying tokens immediately. Conversely, they are likely to get hurt from the changing pool weights, which can push the token price below their purchasing cost.

Two-way Trading: Unlike a typical sale, where the only option is to send USDC in exchange for tokens, you can buy and sell DIVER tokens during an LBP process. This makes Balancer LBP a good price-finding mechanism.

Fair Token Distribution: As a liquidity bootstrap venue, LBP ensures that anyone, regardless of their capital size, is able to join the sale. Participants can purchase any amount of DIVER tokens they’d like when they see the price is fit. It is worth noting that a large purchase can cause a high price slippage. This disincentivizes whale buying and offers smaller participants a greater chance of getting the token.

For those of you who already know how a Dutch auction works, you can think of our LBP as a variant of a Dutch auction. The main difference is:

Whereas every successful bidder pays the same price for the token in a dutch auction, the purchasing cost of each LBP participant varies. Each participant pays his own price when he swaps USDC for DIVER tokens.
DIVER price will also trend lower as time progresses during the LBP. However, if someone adds USDC to the pool, the DIVER price will go up, affecting the purchase cost of later participants.

One great analogy is the mobile game Flappy Bird. In this game, Flappy Bird would constantly drop towards the bottom of the screen. It does not fly higher unless you poke it. Adding USDC to the DIVER LBP is similar to poking this Flappy Bird. Buy orders can push the DIVER price higher each time to counterbalance the downward pressure.

Balancer LBP: A User Guide

The process for purchasing DIVER tokens at our Balancer LBP is fairly straightforward. It is similar to swapping tokens on any DEX, requiring the following five simple steps:

1) Go to Divergence’s Official Website

Please be sure to go to our official website:https://www.divergence-protocol.com. Do not access via any shared links or third-party links. Double-check this URL before you proceed.

After clicking the “IDO” button, this will bring you to our LBP landing page: https://lbp.divergence-protocol.com/ which features:

A price chart of the DIVER token once LBP starts;
A “Buy Diver” button that leads you to our LBP on Balancer;
Other key information for you to get started on the sale.

2) Connect to Balancer’s interface

The “Buy DIVER” button on the page will lead you to our LBP on Balancer. This is where you’ll be able to swap USDC for DIVER.

You will need to connect your Ethereum wallet to continue. Make sure you have enough ETH in your wallet to cover transaction fees. Balancer currently supports MetaMask, WalletConnect, Coinbase, and Portis.

You can also go to Balancer App (https://app.balancer.fi/#/trade), and search the trading pair of the pool by inserting the DIVER token address：

0xfb782396c9b20e564a64896181c7ac8d8979d5f4

👴Kindly check this address again and again please👆.

3) Increase Slippage And Choose V1 Liquidity

In accordance with Balancer’s AMM mechanism, when prices are volatile, transactions may not go through. To prevent this, you can set a higher slippage on Balancer’s interface through its Settings menu.

Because our Liquidity Bootstrapping Pool is deployed on Balancer V1, please make sure you choose V1 liquidity. Otherwise, you won’t be able to see the DIVER price quote and proceed with the swap.

4) Approve USDC on Balancer

If you’ve never used Balancer before, you’ll need to approve your USDC tokens by going through the following steps before swapping:

Enter the amount of USDC you want to spend;
Press “Preview Trade” and “Approve USDC”;
Submit the transaction on your web3 wallet.

The “Approve USDC” button now is changed to “Confirm trade”.

Please keep gas prices in mind and always have enough ETH to complete transactions. After approving the USDC token, you will then be able to swap your USDC for DIVER tokens.

5) Swap USDC for DIVER

After you click “Confirm Trade”, submit the transaction on your web3 wallet and wait for the transaction to clear on-chain. Technically, you can use any tokens to swap for DIVER, Balancer will automatically route your orders. However, we recommend swapping with USDC directly. This helps eliminate surprises while swapping.

When your transaction succeeds, it will show up with a “Success” status. If your swap went through correctly, you will now be able to add DIVER tokens to your wallet and check your token balance.

Token Address: 0xfb782396c9b20e564a64896181c7ac8d8979d5f4

What Comes After the LBP?

After our LBP concludes, token liquidity on the Balancer will be removed. DIVER tokens will be available for trading on SushiSwap. We will route the majority of our proceeds and a proportional supply of DIVER tokens to our SushiSwap liquidity pool at the latest LBP price. Please stay tuned for our announcement of an official pool.

Besides, our genesis non-fungible DIVΞR tokens will be claimable by 256 randomly selected LBP participants. As mentioned previously, you won’t have to do anything special to get one of our DIVΞRs. Upon LBP completion, we will let everyone know that these DIVΞRs are available at the website of our partner, Project Galaxy. You can then connect your wallet to our section of their site, and check to see if you are a winner of this random draw.

If you are eligible to claim a DIVΞR out of this limited pool of 256, you can approve a transaction and one of them is yours:) Each of these DIVΞRs comes with a unique profile. We can’t wait for you to discover them.😎

Updated DIVER Token Circulation Metrics

The initial circulating supply will remain the same at 7.75% as previously announced. In order to proceed with our Balancer LBP for 3% of the total DIVER supply, we’ve scaled down our liquidity provision token allocation from 4% previously to 3% now, and only 1% of liquidity provision tokens will be unlocked in the beginning to support token listing.

The rest of our token distribution and release schedules remain unchanged and can be found in our public documentation.

In practice, tokens allocated for LBP purposes typically are not sold out entirely. This is due to the fact that tokens are swapped via the Balancer AMM. In order to completely drain the DIVER token supply, the price would have to spike up to an extreme.

When the LBP concludes, those tokens left undistributed in the pool will go to our reserves, which won’t start to unlock until 1 year after our TGE. So you can expect an actual initial circulation lower than 7.75%.

About Divergence

Divergence is a decentralized platform for hedging, trading DeFi-native asset volatility, with its flagship product being an AMM-based marketplace trading synthetic binary options.

🔔Website: https://www.divergence-protocol.com/

💬Telegram: https://t.me/divergenceprotocol

🚀Twitter: https://twitter.com/divergencedefi

📢Telegram Announcement: https://t.me/divergenceannouncement

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