What is Izumin Finance? Izumin Finance is a multichain-oriented DeFi protocol and provides liquidity-related services for projects similar to Tokemak. Recently, Izumin Finance has successfully called for an amount of up to $22M from many different famous investment funds and what makes Izumin Finance so attractive, let’s find out in this article.
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What is Izumin Finance?
Overview of Izumi Finance
Izumi Finance is a DeFi protocol oriented towards multichain development. Besides, Izumi Finance also aims to develop many different products with the key product being Liquidity as a Service (LaaS).. LaaS is one of the pieces of DeFi 2.0 that Tokemak has implemented extremely successfully and is still one of the developing DeFi projects to this day.
Izumi Finance’s vision is that all tokens in the crypto market deserve not only better, longer-term liquidity but also efficiency and sustainability – something Liquidity Mining has not been able to do.
Izumi Finance’s product suite & Operational mechanism
Izumi Finance is an ecosystem with 3 core products such as LiquiBox, iZiSwap and iZumi Bond. Besides, the platform also provides a number of products such as Impermanent Loss (IL) Insurance, Dual Currency Product and Fixed Income Product.
iZiSwap – New AMM model
iZiSwap was first deployed on the BNB Chain network and what Izumi Finance calls a Discretized – Liquidity – AMM with the ability to bring more than 5,000 times more capital efficiency than AMM models using the traditional x * y = k formula.
In essence, Discretized – Liquidity – AMM is also an AMM aimed at centralized liquidity similar to what Uniswap V3 did, but instead of like Uniswap V3, LPs choose price ranges to provide liquidity, with iZiSwap LPs will provide liquidity on fixed price levels similar to Trader Joe’s Liquidity Book.
LiquidBox – Liquidity as a Service model
To understand LiquiBox, we will briefly study LiquiBox’s operating mechanism including the following steps:
- Step 1: Projects will contact Izumi Finance to request liquidity provision for $10,000 and provide some information such as: liquidity provision price range, event time and number of tokens used as incentive .
- Step 2: If successful, Izumi Finance will deploy the pool on its platform.
- Step 3: Users provide liquidity on Uniswap V3 and receive NFTs representing that liquidity.
- Step 4: Users will deposit NFTs into the Izumi Finance protocol.
- Step 5: The protocol checks the price at which users are providing liquidity on Uniswap V3 and will adjust if the price being offered is deviating from the range.
That is the mission and how LiquidBox implements a liquidity bootstrap event for a native token launch for the first time.
iZUMiBond and iUSD
Uzumi Finance is the leading project in issuing convertible bonds in the form of stablecoins. The operating mechanism is quite simple when users will spend ETH or BIT to buy Izumi Finance bonds in the form of stablecoin iUSD, then at maturity, iUSD will be converted into the project’s native token, IZI, at a rate discount.
Uzumi Finance combines with the Solv Protocol project to issue convertible bonds in the form of stablecoins.
Impermanent Loss (IL) Insurance – Insurance for LPs
Through the combination with derivatives protocols, the Uzumi Finance platform can help LPs avoid Impermant Lost when providing liquidity on AMM protocols that the project supports.
Dual Currency Product – Asset management for users
This is a product that helps users optimize their profits at the present time if the market is in a strong growth trend and in the future if the market is in a downtrend.
Fixed Income Product – Fixed interest rate for investors
Through exciting activities in DeFi such as Lending & Borrowing, Trading, Farming, Staking,…, Izumi Finance can pay a fixed APR of up to 10% within 30 days to investors.
Development Roadmap
Update…
Investor
- November 10, 2021: Uzumi Finance successfully raised $2.1M for the first time at Stragetic round with the participation of Mirana Ventures, Everest ventures, Youbi Ventures, Puzzle Ventures,…
- December 9, 2021: Uzumi Finance continues to successfully call for $3.5M in Series A round with the participation of many investment funds in the crypto market such as Haskey, MEXC, GSR, IOSG, Bixin Ventures,…
- April 25, 2023: Uzumi Finance successfully raises up to $22M with the participation of Unicode Digital, NextGen Digital Venture, Bella Protocol and Incuba Alpha.
In the most recent capital call, the project wants to develop a decentralized OderBook called iZiSwap Pro on the zkSync Era network.
Core Team
Update…
Tokenomics
Overview information about Izumi Finance token
- Token name: Izumi Finance
- Code: IZI
- Blockchain: Ethereum
- Token classification: ERC-20
- Contract: 0x9ad37205d608b8b219e6a2573f922094cec5c200
- Total supply: 2,000,000,000
Token Allocation
- Partnership: 10%
- Private Round: 15%
- Core Team: 18%
- Ecosystem: 55%
- IDO: 1%
- Airdrop: 1%
Token Release
The total token supply is 2B IZI which will be paid in installments over 4 years. Details will be as follows:
- Core Team will be locked within 6 months, first payment 10% and gradual payment over the next 18 months..
- Ecosystem 3% will be deducted to provide liquidity on Uniswap V3 and paid in installments within 4 years.
- Private Round will be paid 10% at the time of TGE and locked within the next 3 months then paid in installments within 12 months.
- Partnership will be paid first 10% after 6 months and paid in installments within 18 months.
- IDO and Airdrop will be paid 100% at the time of TGE.
Token Use Case
Uzumi Finance builds the veToken model with veIZI with some of the following main functions:
- Governance
- Staking: In 4 years there will be 40M IZI to be paid in installments to veIZI holders.
- Buy Back & Share: 50% of the protocol’s revenue will buy back IZI in the market and share it back to veIZI holders.
- Bootsing: Holding veIZI helps users receive additional rewards for participating in using the protocol.
Exchanges
Currently IZI is traded on a number of exchanges such as Bybit, Kucoin, Gate.io, BingX, MEXC or some decentralized exchanges such as Uniswap V3.
Project Information Channel
- Website: https://izumi.finance/
- Twitter: https://twitter.com/izumi_Finance
- Discord: https://discord.com/invite/vUFpSwxTzz
- Documents:
Summary
Izumi Finance is a project with quite an ambitious vision when building many different products, but the effectiveness of the projects is still at a relatively low level. Will raising capital after more than a year of silence and development on zkSync bring success to Izumi Finance?