Singapore, May 20, 2022 — iZumi Finance, the innovative multichain decentralized finance (DeFi) protocol that provides liquidity-as a-service (LaaS) on multichains, has announced the launch of its next-generation decentralized exchange (DEX) iZiSwap on BNB Chain with $30 million raised to expand its ecosystem.
Incorporated with a discretized-liquidity-automated market maker (AMM) model that promises to reduce price slippage for token swapping, it arrives with the debut of iZumi’s new, United States dollar-pegged, 100% collateral-backed iUSD bond.
iZUMi raises $30M, expands ecosystem
The iZumi platform’s $30 million raised will support the early-liquidity provision of iZiSwap’s launch through bond voucher and iUSD claim sales.
IV Ventures, Cobo Wallet, Mirana and other institutional investors contributed $20 million toward the raise, including $11 million raised via bond-voucher sales on Solv Protocol to support the future development of the iZumi ecosystem.
There was incredible demand from the community for iZumi bond vouchers, with $4 million Binance USD (BUSD) worth of vouchers sold in just 17 minutes during the raise and an additional 5,000 BNB ($1.51 million) selling in just under three hours.
IZumi Finance held another round for bond-voucher sales to raise 2,500 Wrapped Ether (wETH) and 550,000 BitDAO (BIT) to energize the liquidity providers of the BIT-Ether (ETH) pool on Uniswap v3. Previously on May 8, BitDAO created a BIT-ETH liquidity pool on Uniswap v3 with its liquidity service provided by iZumi Finance. These two parties launched a two-month incentive period, rewarding liquidity providers with dual rewards of iZumi Finance (IZI) and BIT tokens.
New features with iZiSwap
The introduction of iZumi’s new discretized-liquidity AMM will allow the rollout of a unique limit-order feature on iZiSwap guaranteeing no slippage and cheaper trading fees.
The discretized-liquidity AMM improves on the concentrated-liquidity model first deployed by Uniswap v3 and makes liquidity positions effective at certain price ranges. With it, iZiSwap can now cut price ranges into discretized price ticks — pinpointing them to exactly zero. Traders on iZiSwap will benefit from enhanced capital efficiency, zero slippage and cheaper trading fees, with liquidity guaranteed at any price range demanded.
A capital-efficiency comparison between iZiSwap and major version 2.0 DEXs on BNB Chain
The mechanism of the discretized-liquidity-AMM model
As of May 18, iZiSwap had successfully accumulated more than $13 million in total value locked and generated more than $500,000 in trading volume — all in less than two weeks since its soft launch on May 7.
For multiple trading pairs of major assets such as BNB, BUSD and Tether (USDT), iZiSwap has exceeded its major competitors on BNB Chain in liquidity depth.
IZiSwap confirms the innovative discretized-liquidity-AMM model significantly improves capital efficiency compared to other DEXs with a traditional “X” times “Y” equals “K” version 2.0 AMM model — providing another option for swapping tokens on BNB Chain.
Bond farming: A paradigm shift in liquidity mining
Investors have more opportunities in iZumi’s ecosystem with the debut of iZumi Bond USD, a bond that raises funds for the iZumi Finance protocol to grow its ecosystem of products. The iUSD bond is pegged one-for-one with USD and 100% backed by iZumi’s collaterals and future revenues, with the supply guaranteed to never exceed the total value of the iZumi treasury.
By guaranteeing the principals and interests paid to investors, bond farming has achieved a paradigm shift for liquidity mining. The revenue generated by bond farming will first be used to repay investors before rewarding market makers. For liquidity providers, it lowers the risk of impermanent loss while yielding a higher profit. For protocols, it inspires a cheaper solution for distributing incentives that are vital to surviving a bear market. It’s a win-win situation for both liquidity providers and protocols if they adopt bond farming on iZumi.
“Liquidity is the catalyst for growth in DeFi. With the launch of our discretized-liquidity AMM and iUSD, iZumi Finance is eliminating the barriers to liquidity and making DeFi more attractive and efficient for market participants,” said Jimmy Yin, co-founder of iZumi.
About iZumi Finance
IZumi Finance is a multichain DeFi protocol providing one-stop LaaS. Its philosophy is that every token deserves better on-chain liquidity in an efficient and lasting way. Deployed on Ethereum, BNB Chain, Polygon and Arbitrum, iZumi has provided liquidity services for BitDAO and 10-plus protocols and managed more than $60 million in liquidity from reputable institutions and 8,000 individual liquidity providers. The ultimate goal for iZumi Finance is to help every partner and token enjoy on-chain liquidity.