TI Rating Report: Convergence

Convergence is a decentralized interchangeable asset protocol built on Ethereum. It is a platform for minting and trading wrapped asset tokens. It aims to provide real-world asset that are interchangeable in the DeFi space by connecting wrapped security tokens with utility tokens on an interface that is easy to use. It especially clarifies a solution for three main problems that referring to pre-IPO, security-liked private equity, liquid investment, and private on-chain fundraising mechanism. The three issues are declared as follow:

1. Weak demand of investors caused private asset owners unable to raise funds effectively. (From issuers perspective)

2. Traditional STOs process is complex and high-cost. (From issuers perspective)

3. Limited liquidity and barriers for investors. (From investors perspective)

The main principle of the solution: Fundraisers wrapped their assets into wrapped asset tokens and issued these packages on Convergence Offering (ConvO).Then, these wrapped asset tokens will be tradable on Convergence’s AMM (ConvX).