What is Convergence RFQ?

What is Convergence RFQ?


Institutional Liquidity Network For Crypto Derivatives


  • Convergence RFQ is an Open Standard for Market Makers to provide liquidity to any project. Liquidity is organized between Providers and Protocols through Convergence.
  • Convergence is a RFQ Network.
  • Convergence RFQ - A Unified On-chain API for Liquidity Provisioning Across DeFi Protocols
  • Convergence RFQ aim to be the one-stop shop for market makers provide and drive liquidity into any new and existing DeFi Protocols by doing an integration with its on-chain API.
  • Convergence RFQ is the liquidity coordination between The Protocols and Market Makers.
  • Send or receive quotes from multiple counterparties at once
  • Start or participate in token batch auctions

What is RFQ? (Request For Quote):

Even though it already exists in traditional finance and CeFi, DeFi hasn't set up its financial market infrastructure fully yet. Here is where RFQ comes to play. 

If you want to trade $10,000 in cryptocurrencies, it is easy to find liquidity; however, trading $10,000,000 may be difficult, especially if the coin is scarce or has low liquidity.

RFQ allows you to ask for quotes from different counterparties so you can get the best quote and swap your crypto.

 The majority of traders do these transactions insecurely on Telegram or other channels, but with RFQ's electronic market infrastructure, you may execute these swaps quickly and conveniently.

Advantages:

  • Streamlined process for developing sophisticated versatile option structures
  • Demand for a price and let makers compete on pricing.
  • Execution with a single click, cleared at your preferred place
  • On-demand liquidity provisioning
  • High-yield opportunities
  • Access to new protocols


Convergence RFQ Technical Fundamentals

  • RFQ solution that MMs need to integrate once and supply liquidity to Dapps
  • Network with a unified API interface to interact with any protocol with one integration
  • On chain volume synchronized probability of informed trading (VPIN) metrics to see front running trades
  • A network managed by its members for its member

Features:

  • RFQ when a DAO2 agrees to sell from their treasury
  • Receive the best bid from market makers for a block order
  • Allow market makers or transactions to occur in a time window with obfuscated transaction payloads to allow market makers to hedge before settlement
  • Transaction transparency that allows everyone to verify and reuse historical data


Network Participants
  • For example a treasury decide to convert a hundred million dollars forth of its token into a stablecoin, they can do it through Convergence RFQ. Auction in any other actor in the network instead of dumping their token on the decks causing maximum slippage.

Convergence RFQ Auction Example

In this example they can even auction BNB chain tokens thanks to Wormhole Bridge



Convergence is one of the most anticipated DeFi Protocols on Solana

Convergence has made it in Serum Accelerator Program! (holds 3rd place)

Growth

  • Collaboration with big exchanges and be part of their Derivates Exchange Partner. FTX x Paradigm
  • Collaboration with new DeFi protocols on Solana and other L1 protocol through Layer Zero or bridges (Convergence RFQ currently uses Wormhole)
  • Collaboration with institutional clients, hedge funds, OTC desks, lenders, structured product issuers etc.


























































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































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