Farming

Seeking community feedback on security token offering for DIVA Technologies AG

By Walodja1987 at

DIVA Protocol will soon be released on mainnet, providing opportunities for entrepreneurs and businesses to build a wide range of derivative applications on top of it. From DeFi hack insurance to exotic structured products and even derivatives based on football player transfer values, the possibilities are endless.

The DIVA token is a key component of the DIVA governance system and functions as a voting token. Holders can use it to steer the protocol’s direction by electing a delegate. The first delegate elected by the founding team will be DIVA Technologies AG, a Swiss-based company founded by one of the protocol’s co-founders, Wladimir Weinbender.

As a community-driven project, we want to give our supporters multiple options to participate in our journey from the very start. Recognizing that traditional investors may not feel comfortable with holding governance tokens, we're partnering with Arcton to offer a regulated security token that represents ownership of DIVA Technologies AG and entitlements to its profits and revenue. For the avoidance of doubt, the security offering would not replace the token but serves as an alternative way to gain exposure to DIVA Protocol from the start.

What is DIVA Technologies AG’s business model?

DIVA Technologies AG will serve as a service provider for DIVA Token holders and focus on driving protocol adoption according to the protocol’s adoption strategy. This consists of three major components:

  • Growing the developer community: This encompasses all efforts to reduce the barriers for developers to get started with DIVA Protocol, such as comprehensive documentation, advanced tools and responsive support, as well as to draw developer attention through events such as hackathons.
  • Foster integrations: This includes integrating with existing decentralized oracle and trading solutions to provide users with all the necessary components to construct complete derivative product offerings.
  • Growing use cases: This involves collaborating with traditional financial institutions and FinTech startups to develop practical use cases like structured products and conditional donations.

In exchange for their services, DIVA Technologies AG will be given access to protocol fees and annual DIVA token unlocks. The adoption strategy including priorities is illustrated below:

DIVA Protocol is the company's first major client. In the long run, however, it aims to expand its consulting services to other Web3 protocols, provide financing for DIVA-based ventures as well as legal support.

How is the security token structured?

The security token offered by DIVA Technologies AG is structured as digital shares, issued on the Arcton crowdinvesting platform in accordance with the Swiss DLT Act. As a shareholder, investors are entitled to receive future dividends from the company. Investments can be made using either USDC or fiat currency, and the shares are immediately tradeable on decentralized exchanges such as Uniswap, alongside the DIVA token.

To issue these shares, the company uses a Special Purpose Vehicle (SPV) structure, commonly used by other crowdfunding platforms to pool investors and simplify the process while maintaining a clear capitalization table. This allows DIVA Technologies AG to offer a security token to a large number of investors, providing them with a unique investment opportunity while ensuring an efficient and streamlined process. The issuance process is outlined in the following illustration:

Conclusion

DIVA Protocol presents a unique opportunity for investors to gain exposure to the Decentralized Finance sector through either a governance token or a regulated security offering. The DIVA founding team invites the community to share their feedback on this approach and any concerns they may have about investing in DIVA Technologies AG’s security token. The top 10 most insightful and honest responses will be rewarded with 300 DIVA tokens each. Feedback can be sent to Wladimir Weinbender. Your input is greatly appreciated.

Links

  • 🖼️ Slide deck: shorturl.at/aDNOR
  • 🌐 Website: https://www.divaprotocol.io/
  • 📚 Docs: https://docs.divaprotocol.io/
  • 📖 Smart contract documentation: shorturl.at/aemNU
  • 🍏 DIVA Testnet App: https://app.diva.finance/
  • 🦜 Twitter: https://twitter.com/divaprotocol_io
  • 🤖 Discord: https://discord.gg/8fAvUspmv3