Lithium Finance announced the news of their collaboration with Convergence Finance, which is renowned as the pioneer Automated Market Maker that has facilitated the interchangeability of personally owned assets within the matrix of the Decentralized Finance. The partnership will enable Lithium to assist Convergence in marking the price of private holdings through collective intelligence. The DMI mechanism expanded as “Determinant-based Mutual Information Mechanism” will power the entire operation. Through this algorithm, a participant can request information regarding the price of a particular personal asset, and the providers of the information can also gain incentives, thereby ensuring that the queries are answered accurately and honestly.
Within the Convergence platform, an asset holder will gain much more reasonable prices for their private holdings. Thereby, the companies hope to better the entire system of discovering the costs of such holdings exponentially. Furthermore, this collaboration is expected to reduce the disparity between real-life assets and Decentralized Finance to ensure smooth trading of the private assets at the right and justified price.
According to Steve Derezinski, one of the founding members of Lithium Finance, Convergence will apply Lithium’s long-term academic research on Decentralized Finance in real life situations. The synergy, Derezinski expects, will be of a huge magnitude, and the partnership will aptly demonstrate the prowess of the technology that the collaboration has created.
Oscar Yeung of Convergence Finance said that when an oracle specializing in the pricing of private assets joins hands with a platform that offers innovation and transaction in private assets, the collaborative force will be indomitable in the Decentralized Finance space.
Both Lithium and Convergence are big names to reckon in their respective sectors. As an oracle specializing in transmitting accurate and timely information about asset pricing, it informs stakeholders about the right value of private equity, pre-IPO and IIliquid holdings.
As an Automated Market Maker, Convergence facilitates its users to interchange their personal holdings within the DeFi matrix. The users can divide the assets into fractions through an easily manageable interface and compose them using other protocols of Decentralized Finance.