Divergence

Divergence is a crypto options protocol that runs on-chain. It lets users trade and hedge digital-asset exposure through tokenised calls and puts, and it aims to use collateral efficiently.

What Divergence offers

• Spear and Shield tokens — virtual tokens that represent digital calls (Spear) and puts (Shield). A holder can claim one unit of collateral per token if it expires in the money.
• Liquidity provision — market makers need only one collateral type, and can pick from a range of fungible tokens that work with other DeFi protocols.
• Custom pool parameters — liquidity providers choose their own option exposure by setting the pool terms they prefer.
• Permissionless markets — anyone can create a market and name the terms, including the collateral behind synthetic asset exposure.
• Dive Bar staking — holders of the DIVER token can stake it to earn yield.

Who it works with

The protocol is aimed at DeFi traders who want limited risk, and at liquidity providers who want defined exposure. Collateral can be withdrawn at any time.

Key facts

• Type: on-chain options protocol
• Token: DIVER, used for staking
• Collateral: one collateral per pool, chosen by the user