In this article, I will talk about a DeFi protocol aimed at improving the provision of liquidity and trading efficiency. The company improves liquidity mining on various blockchains with innovational breakthroughs like LiquidBox and Programmable Liquidity as a Service or LaaS.
Through LaaS, Izumi Finance provides programmable liquidity while simultaneously improving capital efficiency and minimizing transaction costs. In turn, this results in better liquidity provisioning and user experience in the DeFi environment.
What is Izumi Finance?
Izumi Finance is a decentralized finance (DeFi) protocol that leverages the power of blockchain technology to offer a range of financial services centered around liquidity provision.
It introduces a novel concept known as Liquidity as a Service (LaaS), aiming to enhance the efficiency and effectiveness of liquidity provision across various blockchain networks.
At its core, Izumi Finance utilizes a multi-tiered investment model alongside a convertible bond denominated in USD, referred to as iUSD. This innovative approach allows users to engage in liquidity mining by staking Uniswap V3 Liquidity Provider (LP) Non-Fungible Tokens (NFTs), thereby participating in a more dynamic and potentially rewarding liquidity ecosystem.
Izumi Finance Overview
| Metric | Value |
|---|---|
| Price | $0.007531 |
| Market Cap | $5.93M |
| Volume (24h) | $148.99K |
| FDV | $15.06M |
| Vol/Mkt Cap (24h) | 2.55% |
| Total Supply | 2B IZI |
| Max. Supply | 2B IZI |
| Circulating Supply | 787.4M IZI |
| Website | Website |
iZiSwap
Incorporated with the innovative Discretized-Liquidity-AMM model, iZiSwap is a next-generation DEX on Multi-Chains to maximize capital efficiency by realizing Limit Order in a decentralized way.
Precise
Trade tokens at an exact price to avoid front-run and slippage
Efficient
Enjoy more LP fees and high APR with maximized capital efficiency
Secure
Keep your money 100% in your wallet in a fully decentralized and non-custodial way.
iZi token
iZi token is izumi platform’s utility token, it can be used to incentive pool set-up and other tools’ usage. Additionally, users need to stake iZi token to acquire ve-iZi token, which is izumi platform’s governance token that enables holders to be eligible for a range of benefits and participate in governance.
Token allocation
Izumi Finance Features
Programmable Liquidity as a Service (LaaS)
Izumi Finance uses liquidity tailored to particular protocols, which improves the liquidity of multiple blockchains starting from Ethereum and Uniswap V3 with its advanced Blockchain as a Service (BaaS) feature.
LiquidBox
This newfound characteristic permits the software-controlled mining of liquidity by enabling protocols to set incentive targets in exact price zones to facilitate Introduction of more efficient liquidity.
iZi Token Utility
The iZi token is vital to the ecosystem as it allows users to actively engage with it. This includes staking, liquidity mining and swapping.
Multi-chain Expansion
Izumi Finance is increasing its reach to several chains where decentralized exchanges (DEXs) will benefit with improved efficiency for trading and even liquidity.
Discretized Liquidity AMM
In the future, the company plans to issue an automatic market maker with discretized (or grids) liquidity over chains for better capital efficiency and lower transaction fees.
Concentrated Liquidity on Bridges
Through the C-AMM Bridge, Izumi Finance will concentrate on cross-chain liquidity for benefits such as lower fees and faster speeds.
Lower Emission Rate
The protocol intends to improve liquidity through the lowering of emission rates which will help with the pool 2 problem as well as mitigate the chance of impermanent losses to liquidity providers.
Auto-Rebased Modules
These modules help the protocol to maintain efficiency and appeal to liquidity providers by adjusting rewards constantly.
Vesting Schedule
| Category | Amount of Token | % of Total Supply | Release Schedule |
|---|---|---|---|
| Team | 360,000,000 | 18% | 10% released at 6 months post initial listing date, remaining released linearly over 18 months. |
| Ecosystem | 1,100,000,000 | 55% | 3% initially in Uniswap V3, remainder released over the next 4 years. |
| Private Round | 300,000,000 | 15% | 10% released at listing date, 3-month cliff, remaining released linearly over 12 months. |
| Partnership | 200,000,000 | 10% | 10% released at 6 months post initial listing date, remaining released linearly over 18 months. |
| IDO/IEO | 20,000,000 | 1% | Released after listing. |
| Airdrop | 20,000,000 | 1% | Released after listing and reserved for marketing campaigns. |
How will Izumi Finance be used?
Izumi Finance is a DeFi protocol that offers a range of crypto-based financial services. It launched Programmable Liquidity as a Service (LaaS) on Ethereum and Uniswap V3 with plans to expand to other blockchains.
The service uses LiquidBox, which enables optimized liquidity mining where specific price ranges are set to increase the liquidity pprovided incentive. The infrastructure of the protocol is based on the iZi token which supports staking, liquidity mining, and swapping.
New features such as discretized liquidity AMM, concentrated cross-chain bridge liquidity, are meant to improve efficiency, reduce cost rates, and smooth the cross-chain user experience.
Roadmap
| Year/Quarter | Milestone |
|---|---|
| 2021 Q4 | Launch LiquidBox based on Uniswap V3 |
| Research on Discretized-liquidity AMM | |
| 2022 Q1 | Provide Liquidity as a Service to other protocols (Double Farming) |
| Extend LiquidBox to Multi-chains | |
| Launch ve-iZi and emission governance | |
| 2022 Q2 | Launch built-in AMM on Multi-chains |
| 2022 Q3 | More trading tools on iZiSwap |
| Build iZUMi partner ecosystem | |
| 2022 Q4 | iZUMi DAO governance |
Top Izumi Finance Alternatives
Uniswap
The Uniswap Protocol is an automated market maker – a DEX (Decentralized Exchange) where people with no trust must be able to swap a broad selection of coins with one another in a decentralized manner. Funds can be put to use by lending to liquidity pools.
SushiSwap
This DeFi platform is built on Ethereum and works like Uniswap but is an AMM with added liquidity provision, yield farms, staking, and lending on KNC using BentoBox.
Curve Finance
A group of smart contracts on Ethereum for swapping stablecoins with minimum slippage and maximum liquidity. Curve farms liquidity tokens and offers farming and borrowing services.
Balancer
A type of exchange focused on automated portfolio management. Smart contracts for the Balancer protocol enable users to become liquidity providers through volatility control by allowing self-made liquidity pools with different weights on tokens.
PancakeSwap
An exchange with Dual Token model . Being implemented on the Binance Smart Chain (BSC) , it exhibits features like Uniswap but with less transaction fees. It also has improved yield farming, staking, and token swaps.
Conclusion
To sum up, Izumi Finance is a comprehensive and advanced DeFi service that provides such tools as Programmable Liquidity as a Service (LaaS) and LiquidBox, which optimize liquidity mining and enhance capital efficiency.
Given its multi-chain expansion plans, the platform intends to boost decentralized trading for many blockchain networks. The iZi token at the heart of the system enables staking, liquidity mining, swapping, etc.
Izumi Finance solves some of the most impactful issues like pool 2 dilemma and impermanent loss, enabling seamless operations for liquidity providers and users as well as sustainable profit generation for the protocol.
