Convergence Finance has announced a collaboration with 1inch Network to boost liquidity and price discovery for assets on its ConvX automated market maker (AMM) platform. 1inch Network is one of the world’s leading providers of DEX aggregation and liquidity solutions.
With the inclusion of 1inch’s aggregation protocol, assets on ConvX will benefit from improved liquidity and price discovery. The tradable assets on ConvX will be accessible to DeFi users across the DeFi ecosystem.
Under the Convergence-1inch collaboration, the decentralized exchange aggregator will aggregate all the existing pairs on ConvX. It will also aggregate the future assets listed on ConvX.
Convergence co-founder Oscar Yeung noted that his company had already benefited from 1inch Network’s aggregation. Now DeFi users will be able to conveniently buy and trade exotic, illiquid, and private assets on Convergence via 1inch. Convergence has a lot more illiquid and exotic assets ready to be listed on ConvX.
There are more than $256 trillion worth of real-world assets, most of them highly illiquid and beyond the reach of small investors. DeFi protocols like Convergence enable owners of such assets to bring them into the DeFi ecosystem for greater liquidity, security, and price discovery.
The owners of private and exotic assets can sell fractional pieces of their assets if they want. Buyers can own or trade these assets without having to leave the DeFi ecosystem. The assets are composable with other DeFi protocols.
For example, Convergence allows investors to buy tokenized shares of SpaceX. Since SpaceX is a privately-held company, small investors don’t have a chance to own its shares any other way. The platform also allows users to buy fractional pieces of high-value assets like popular NFTs.
Due to the lack of barriers – jurisdictional, geographical and others – in DeFi, people from around the world can buy and sell assets to one another.
The tokens representing the real-world asset act as a digital and legal proof of ownership from both the on-chain and off-chain perspective. Convergence transfers the legal rights to the asset to new buyers.