Singapore, November 10, 2021 — Izumi Finance, a protocol providing liquidity as a service on Uniswap V3, has raised a total of $2.1 million from a number of decentralized finance (DeFi) and crypto investors.
The round was led by Mirana Ventures with Everest Ventures Group, Youbi Capital, LucidBlue Ventures, Puzzle Ventures, WolfEdge, ICG, Adaptive Lab, Nothing Research and Tess Ventures backing the startup in its fundraising efforts.
The izumi protocol aims to simultaneously solve a pain point introduced with Uniswap V3 and its concentrated liquidity pools, while further innovating liquidity mining initiatives over classical Uniswap V2-style pools. The key mechanism behind izumi is the ability to provide non-homogenous liquidity incentives applied to specific price ranges of a Uniswap V3 pool. This allows projects to effectively fine tune their rewards to reach better outcomes. For example, izumi solves the so-called “Pool2 dilemma,” or the excessive dilution of a project’s token in the efforts of bootstrapping its liquidity.
By using izumi and specifying only specific price ranges where incentives are delivered, projects can use Uniswap V3 for their farming incentives, while simultaneously not overpaying for unnecessary liquidity. Users will earn the most liquidity mining rewards if they can provide liquidity the same as the specific price range on Uniswap V3. This means that projects will have more concentrated liquidity and higher capital efficiency while launching the liquidity mining program on izumi.
Since its launch, Uniswap V3 has attracted few high quality liquidity mining schemes, owing at least in part to the complexity of its special nonfungible token- (NFT)-based positions. The izumi project solves this market need and takes full advantage of the flexibility provided by Uniswap V3 to create even better incentive structures than classic Uniswap V2 pools.
“We are excited to build Uniswap V3 LP Staking protocols to provide non-homogenous incentives in different price ranges. This will improve the efficiency of incentive distribution for reward providers and enhance the earnings of liquidity providers as well,” said Jimmy Yin, founder of izumi Finance. “With izumi, Uniswap V3 will become strong competitors with Curve in the stablecoin trading market and attract more potential projects who previously planned to launch farming pools in SushiSwap. We are going to unleash the potential of financial NFTs in Uniswap V3 and extend service to the multi-chain world in the future.”
Izumi Finance is the platform providing liquidity as a service with Uniswap V3 and extends concentrated liquidity service for the multi-chain ecosystem. It proposes “non-homogenous” liquidity mining protocols to provide Uniswap V3 LP token staking rewards non-homogeneously in different price ranges, which could improve the efficiency of incentive distribution for reward providers and enhance the earnings of liquidity providers in Uniswap V3. In addition, izumi established a C-AMM bridge to link Uniswap V3 with other chains and extend concentrated liquidity service to more users.