I spoke with Uwe, co-founder of Convergence, about their goal to create an open standard for institutional over-the-counter (OTC) trading on blockchains. We dove into the details around their request-for-quote (RFQ) model that allows large traders and institutions to minimize slippage when moving significant funds.

Uwe explained how their partial collateralization approach increases capital efficiency compared to fully locked collateral for things like derivatives trading. Their protocol also enables traders to whitelist specific wallet addresses to transact with, adding an element of permission and trust.

We discussed the convergence token, which will allow holders to vote on policies like margin requirements or collateral thresholds per Venue. So users can dictate the risk parameters of the Venues they interact with based on their convergence stakes

With the roadmap also including convergence bot launching its own token, the overarching vision aims to bridge traditional finance comprehensively into DeFi in a decentralized, user-controlled manner.