pubDate: “2021-11-13” categories:
- “altcoin-news”
- “latest” tags:
- “altcoin”
- “crypto”
- “uniswap” coverImage: “Izumi-Finance-Secures-2.1M-On-Uniswap-V3.jpeg” description: “It looks like your text cut off at the end. Here is a completion of that sentence, along with a comprehensive overview of the news and the protocol itself. …Nothing Research, and several other prominent angel investors and crypto funds. Here is a breakdown of the context behind this funding round and what iZumi Finance is all about: ### The Funding Round The text refers to a $2.1 million seed funding round that iZumi Finance closed in early 2022. * Lead Investor: The round was led by Mirana Ventures (the venture capital arm of the major crypto exchange Bybit). * Other Backers: The diverse list of investors—including Everest Ventures Group, Youbi Capital, and Puzzle Ventures—highlighted strong institutional confidence in the team’s ability to solve liquidity issues in Decentralized Finance (DeFi). ### What is iZumi Finance? iZumi Finance is a multi-chain DeFi protocol that originally built its reputation on providing Liquidity as a Service (LaaS). * Uniswap V3 Integration: When Uniswap V3 introduced “concentrated liquidity” (allowing liquidity providers to allocate their capital within specific price ranges rather than across the entire price curve), it became highly capital-efficient but much more complex to manage. iZumi built tools and a liquid mining protocol to help projects and users easily manage and incentivize this concentrated liquidity. * iZiSwap: Building on this expertise, iZumi later launched its own decentralized exchange called iZiSwap. It uses a unique Discretized-Amm (DAMM) model that combines the capital efficiency of concentrated liquidity with the stability of traditional Automated Market Makers (AMMs). ### Why This Mattered In the DeFi space, “liquidity fragmentation” and “capital inefficiency” are massive hurdles. By securing this capital, iZumi was able to expand its ecosystem, incentivize liquidity providers through its native iZI token, and build out its proprietary DEX infrastructure. ### Where iZumi is Now Since this 2022 funding round, iZumi Finance has grown significantly. Rather than just being a layer on top of Uniswap, iZiSwap has become a leading DEX in the Layer-2 (L2) and Zero-Knowledge (ZK) ecosystem. It has deployed on networks like zkSync Era, Scroll, Mantle, Linea, and Manta, capitalizing on the low fees and high speeds of these L2s to offer highly efficient trading and liquidity mining. If you are looking for specific information regarding iZumi’s tokenomics, current Total Value Locked (TVL), or how to use their liquid mining platform, feel free to ask!” updatedDate: “2021-11-13T07:32:57” author: Editor slug: izumi-finance-secures-2-1m-on-uniswap-v3 draft: false heroImage: “/placeholder.svg”
Here is a structured summary of the article regarding izumi Finance’s recent funding and protocol mechanics:
TL;DR
izumi Finance, a “liquidity as a service” protocol built on Uniswap V3, has raised $2.1 million to solve the complexities of Uniswap V3’s concentrated liquidity pools. By allowing projects to target liquidity incentives to specific price ranges, izumi increases capital efficiency, prevents token dilution, and boosts earnings for liquidity providers.
Funding Details
- Total Raised: $2.1 Million
- Lead Investor: Mirana Ventures
- Participating Investors: Everest Ventures Group, Youbi Capital, LucidBlue Ventures, Puzzle Ventures, WolfEdge, ICG, Adaptive Lab, Nothing Research, and Tess Ventures.
The Problem izumi Solves
- Uniswap V3 Complexity: Since its launch, Uniswap V3 has struggled to attract high-quality liquidity mining schemes due to the complexity of its NFT-based liquidity positions.
- The “Pool2 Dilemma”: Traditionally, projects suffer from token dilution because they overpay to bootstrap liquidity across broad, unnecessary price ranges.
The Solution: How izumi Works
izumi introduces non-homogenous liquidity incentives. Instead of applying rewards evenly across an entire pool, projects can apply mining incentives only to specific, targeted price ranges.
- For Projects: They can use Uniswap V3 for farming without overpaying for liquidity they don’t need, effectively solving the token dilution issue.
- For Users/LPs: Users earn the highest liquidity mining rewards when they provide liquidity that matches the actual, active price range.
Key Benefits
- Higher Capital Efficiency: Projects get significantly more concentrated liquidity for their reward spend.
- Better Incentive Distribution: Reward providers (projects) distribute tokens more efficiently.
- Increased Earnings: Liquidity providers (users) see improved net earnings.
Strategic Vision & Future Roadmap
According to izumi Founder Jimmy Yin, the protocol has several broad market goals:
- Compete with Curve & SushiSwap: izumi aims to make Uniswap V3 a dominant force in the stablecoin market (competing with Curve) and attract farming projects away from SushiSwap.
- Financial NFTs: The team plans to further tap into the potential of Uniswap V3’s NFT-based liquidity positions.
- Multi-Chain Expansion: izumi has developed a C-AMM bridge to connect Uniswap V3 with other blockchains, aiming to bring concentrated liquidity services to a broader, multi-chain ecosystem.