Understand the high potential public chain Converge's first project: Terminal core mechanism ( After reading this, DeFi has no more barriers )

This article delves into the high-potential public blockchain Converge and its first native DEX Terminal. A detailed breakdown of how its innovative Yield-Extraction model solves the problem of impermanent losses in yield-based stablecoins. This article is from Dongle and was compiled, compiled and contributed by Foresight News. (Synopsis: Cryptocurrency Analysis: Churches, Amusement Parks and Casinos - A Triple Perspective of the Public Chain Ecology in 2025) (Background supplement: The return of the Ethereum king, Base, Hyperliquid data soared... An article to inventory the performance of 8 large public chains in the past 3 months) Found a good project, naturally share it: In the past six months, it seems that the whole network has ignored a high-potential public chain - Converge Chain, which is also normal, because there are few bloggers in the Chinese and English circles to interpret, and retail investors may not see it and not take it seriously. Everyone misses again and again, and continues to miss the next project. When I was looking for a project in early July, I saw that Terminal started from 0 and now TVL has rushed to $290 million, which shows that "smart money" is always quietly entering key areas, thereby widening the distance from retail investors. A good project was discovered by Brother Dog, and it is natural to interpret it in depth. Today's highlights include: Current stablecoin trends ( can be skipped ) Why focus on Converge's Terminal Transition: How did IL appear? ( can be skipped ) How does Terminal reinvent liquidity with Yield-Extraction? How to participate in Terminal airdrops and project coin development expectations First, the general basics: current stablecoin trends ( can be skipped ) The stablecoin narrative has always been the most important bridge between DeFi and TradFi. And the morphology of stablecoins is constantly changing, from custodial USD (USDT/USDC), to on-chain staking (DAI), to algorithmic experiments (UST) , now entering the revenue drive + compliance stage (sUSDe, USD1)...... If you want to take stock, it is that since 2013, in all bull and bear changes, there have been more than twenty stablecoin projects, which are divided according to their nature, and currently have these directions: 1. Centralized stablecoins: such as USDT, USDC ( the most widely covered stablecoins ) 2. Overcollateralized stablecoin: DAI (MakerDAO), sDAI, LUSD (Liquity) 3. Algorithmic stablecoins: Terra UST ( crashed ) AMPL, Frax ( some algorithms ) 4. Risk-free synthetic US dollars in the early stage: sUSD, BitUSD ( early ) 5. Government/compliant stablecoins: anchored fiat currency + treasury bond reserves (USD1. Central bank digital currency ); 6. RWA-driven stablecoin: The assets behind it are U.S. bonds, bills, certificates of deposit, and TradFi. 7. Income-based stablecoins: (Ethena sUSDe and USDe) stablecoins can earn income from synthetic assets → centralized custody → collateralized → algorithm experiments → a complete evolution path of return-driven + compliance. Ethena's sUSDe and USDe ( yielding stablecoins ) have become the third-largest stablecoins by market cap, and this momentum has led other issuers such as Spark, Aave, and Circle to explore the market. Because no matter how the Web3 industry develops, project parties and users have to monetize, and monetization is inseparable from stablecoins, which are closely related to all Web3 users. So stablecoins are a market with more than 100 million users and an important revenue-generating market. Second, why focus on Converge's Terminal Due to the older model of traditional AMM, Ethena's sUSDe is often permanently and inevitably lost, so Ethena has been quietly doing one thing - developing Converge Chain, which is a chain born for "institutional, RWA, and income transactions", a public chain that is completely compliance-oriented and designed centered on institutional needs. Converge provides a compliance framework, KYC/AML module, RWA support module, suitable for institutions to operate, arbitrage, and invest on it. Terminal is the native DEX deployed in Converge, similar in importance to Uniswap to Ethereum. With Ethena's sUSDe and USDe as the core in the past year, Terminal has leveraged the 583% annual growth rate of these assets, attracted a large amount of institutional funding, and obtained Securitize ( the US-registered RWA compliance platform, issued BlackRock's $BUIDL, and is the endorsement of the RWA compliance leader ). As mentioned earlier, Converge is an institutional-level public chain, Terminal is the first native DEX on Converge, and Securitize solves the problem of compliance. Then Terminal is already a veritable bridge between TradFi and DeFi, and all TradFi projects ( such as tokenized T-bills) need to find secondary market liquidity on Terminal, which means that Terminal will occupy a leading position in institutional-level income trading. Focus: There are no tokens on Converge Chain, and Terminal's $TML is Converge's first native token that can be mined. The above is the background of Terminal, focusing on a project, not just looking at its background, which is too narrow, we still need to see what problems the project solves. Third, the little white transition chapter: how did IL appear? ( can be skipped ) At present, when talking about Terminal, the Chinese and English circles are talking about the content of the second section of my above, that is, the "fundamentals" of the project, and today we use plain language to disassemble Terminal's Yield-Extraction model from the technical side, so that everyone can really understand DeFi. Before cutting into Terminal's Yield-Extraction mode, you need to make up for yourself and understand the most painful problem in DeFi: Impermanent Loss ( impermanent loss, how did IL) appear? ( ) Getting Started: LP and AMM The core of DeFi today – decentralized exchanges (DEX) consists of two parts: LP (Liquidity Pool, Liquidity pool ) = You put funds into a smart contract for others to trade; AMM ( automated market maker ) = algorithm that determines how the assets in the pool are exchanged. In traditional CEX, transactions usually rely on the order book (order book): buyer pending orders, seller pending orders, and matchmaking. But in DEX...