DIVER would allow holders to propose and vote on on-chain governance proposals to determine future features and/or parameters of the Divergence platform. For example, DIVER holders may decide on levels of trading fees, the introduction of new products or accepted collateral, and more.
DIVER also provides the economic incentives which will be distributed to encourage users to contribute to and participate in the ecosystem on the Divergence platform, thereby creating a mutually beneficial system where every participant is fairly compensated for its efforts.
Our staking contract is to be released to provide more yield to long-term holders of DIVER. Various types of token rewards will be periodically shared amongst the stakers & governance contributors.
Divergence will also be generating multiple fee streams that are allocated among different users according to their respective contributions to ecosystem operations and/or maintenance.
A 0.3% fee will be charged on each transaction of derivative tokens. 75% of the fees will be distributed to liquidity providers to incentivize their liquidity provision efforts. The remaining 25% will be allocated to a Treasury governed by DIVER token holders. Funds in the Treasury will be used to support the growth of the Divergence ecosystem and incentivize active contributors.
Liquidity withdrawn prior to expiration will be charged fees. This is designed to discourage competitive LP withdrawals ahead of options expiry. This early withdrawal fee will remain in the pool and will be shared by LPs who stayed in the pool.
Before expiration, it is possible that all liquidity providers have withdrawn their shares of the pool. In this case, the smart contract system becomes the ultimate liquidity provider. This is because this system reserves collateral for the highest possible claims from sold options. If the binary options with the higher open interest expire worthless, there will be collateral left unclaimed. These would also be allocated to support the growth of the Divergence ecosystem.