Overview

Initial DEX Offering or IDO is considered one of the most important innovations in DeFi. This decentralized fundraising model has been helping thousands of crypto projects to get sufficient financial support to help materialize their visions into real DeFi applications. Despite its popularity, projects and investors have to undergo several limitations when going through the IDO process. That’s why the concept of pre-IDO is gaining traction in the market, and Convergence Finance’s pre-IDO offerings could provide unique edges for new crypto projects and their potential investors.

Pre-IDO: Place Yourself Ahead of the Game

Timing is the single most crucial element when it comes to investing. When two investors buying the same asset but different times could mean a make-it-or-break-it difference.

Gaining the first-mover advantage also seems a primary reason why IDO is popular these days. Investors can financially support early-stage projects they believe are promising. In exchange, they receive tokens representing the project at a discount; therefore, their upside is more significant than those who come in later.

Despite the popularity of IDO remaining high for both investors and project developers, IDO is not a perfect investment vehicle either.

From the viewpoint of a project developer, although IDOs are a go-to way for fundraising, macro market condition, on the other hand, is a massive consideration for projects that are planning or conducting IDO. In many cases, we’ve seen projects delaying their planned IDO due to market volatility, and that could potentially affect their funding schedule and product launching timeline.

That’s why the concept of pre-IDOs is gaining momentum in the market. Pre-IDO refers to token offerings that happen before the traditional IDO sales taking place. It will give investors exposure to VC-style private investment. For projects, pre-IDO can let developers put the market volatility aside and raise funds regardless of the market ups and downs, focusing more on the product itself.

Lithium Finance: Convergence’s First Pre-IDO

Democratizing investment is one of the main goals of Convergence Finance, and the team has been working hard on realizing this goal.

As Convergence entered a strategic partnership with Lithium Finance, Convergence will make Lithium the first-ever pre-IDO sale. Lithium Finance is the first decentralized pricing oracle for illiquid private assets — leveraging collective intelligence to price the unpriced.

Lithium Finance has already closed a $5 million seed round investment led by Pantera Capital, one of the largest blockchain VC funds in the US, and Hashed, a leading blockchain firm based in South Korea. Lithium has also received investment from some of the biggest names in the industry, such as Alameda Research, Houbi Ventures Blockchain Fund, and OKEx’s Blockdream Ventures.

The founders of the project also came from impressive backgrounds. David Lighton, one of the Co-Founders of Lithium Finance, founded SendFriend, a blockchain-focused payment company backed by Barclays, Ripple, and Techstars. He is also an MIT Sloan alumni and Yale’s Global Justice Fellow. Additionally, David also worked at the Office of the Special Envoy to Haiti at the World Bank.

Steve Derezinski is another Co-Founder of Lithium Finance. Steve is the Senior Executive and MIT Blockchain engineer/MBA. He developed blockchain venture courses for the university. He is also the Founder of Georgia Tech Venture Lab and an ex-robotic and nuclear engineer.

We are glad to release the details of our upcoming dual pre-IDO on Convergence and Polkastarter. Lithium’s pre-IDO on Convergence will take place on ConvO. For Polkastarter, there will be a designated pool for the Lithium pre-IDO, and the procedure is similar to other regular token launches. Trading of the pre-IDO Lithium token fLITH will be available on ConvX, Convergence’s AMM. Here are the details:

Pre-IDO sale details:

• Pre-IDO Date: 24/06/2021
• Token Ticker: $fLITH
• Total Pre-IDO Allocation: 100,000 USD, of which:

Convergence Premium Pool: 40,000 USD

Convergence Public Pool: 30,000 USD

Polkastarter Pool: 30,000 USD

Pre-IDO Price: 0.0045 USD

• Max Cap / Person: 200 USD
• Pre-IDO Venue:

ConvO — https://convo.conv.finance/

Polkastarter — https://forms.pabbly.com/form/share/0Dcf-464103

• Exchange Venue:

ConvX — https://convx.conv.finance/

Redemption date: fLITH will be redeemable to LITH 6 months after the pool close

Note

• Only whitelisted addresses will be able to access ConvO and ConvX for the Lithium Finance pre-IDO sale in both premium access and public pools.
• Eligibility criteria for Polkastarter Pool can be found here; Convergence Finance uses a weighted lottery system to ensure fair access while rewarding early supporters of the Convergence Ecosystem.
• Eligibility criteria for Polkastarter Pool can be found here; Convergence Finance uses a weighted lottery system to ensure fair access while rewarding early supporters of the Convergence Ecosystem.
• Successful whitelist applicants will need to pass KYC and AML requirements.
• Citizens from the following countries will not be eligible to take part in our pre-IDO process: Botswana, Cambodia, Comoros, Ethiopia, Ghana, Iran, Iraq, North Korea, Pakistan, Panama, Seychelles, Sri Lanka, Syria, Thailand, Trinidad & Tobago, Tunisia, USA, and Yemen.
• There will be more whitelisted addresses than there are pre-IDO sale spots. Allocation will be secured on a first come first served basis.
• KYC emails will be sent via Convergence’s official email, admin@conv.finance. If you receive any communication prior to 23/06/2021 asking for funds or personal information, it is NOT Convergence Finance. We will never ask for funds or your seed etc.

Further details:

• Read more about our collaboration with Lithium Finance here
• Read more about our views on pre-IDO here

Conclusion

Timing is everything. This is especially true when it comes to crypto investment. Pre-IDO offers unique edges for crypto investors, and developers will fund their projects in advance with added flexibility. It’s reasonable to expect to see more pre-IDO deals are going to hit the market. Convergence Finance will bring not only high-quality crypto projects to the pre-IDO scene via ConvO but also other private investments, so stay tuned for more.

About Convergence Finance

Convergence will be the first AMM to make private assets interchangeable in the DeFi space by fractionalizing them using a single easy-to-use interface and composable with other DeFi protocols. Convergence enables asset owners to take advantage of DeFi’s liquidity, while DeFi users can access exotic real-world assets unavailable to them before. Convergence Finance combines the edge of a lowered investment entry barrier with the liquidity, automation, and transparency features of DeFi to bring real-world asset exposure to all DeFi users.

Official Links

Website / Discord / Telegram / Twitter / Litepaper

About Lithium Finance

Lithium Finance is the first collective-intelligence pricing oracle to give precise and timely pricing on private, illiquid assets. It rewards analysts who provide truthful information and punish those who offer false pricing data. As a result, Lithium’s users will get the pricing for all hard-to-value assets such as pre-IPO stocks, private equity, and other illiquid assets effectively.