Izumi Finance (IZI): Supporting Uniswap v3 with Programmable LaaS

Keen on discovering alternative crypto investment strategies to buying and HODLing your cryptocurrencies? With the Uniswap v3 update, providing liquidity is the latest investment strategy to gain the spotlight. From concentrated liquidity to NFT Liquidity Provider (LP) tokens, your options for how you want to provide liquidity have truly opened up, thanks to this new focus on leveraged liquidity provision. That said, there’s no project that takes better advantage of this newfound automated market maker (AMM) efficiency than Izumi Finance. As a platform solely focused on solving common Uniswap v3 issues, Izumi Finance rewards users by efficiently distributing rewards. To learn how Izumi Finance and IZI tokens will change how the average crypto investor understands liquidity, read on, as this article includes everything you’ll need to know about the future of Liquidity as a Service (LaaS).

What Is Izumi Finance?

Izumi Finance is a financial platform which provides Liquidity as a Service with Uniswap v3 and a built-in multi-chain decentralized exchange. Izumi Finance proposes innovative liquidity mining protocols to attract liquidity efficiently by distributing incentives in certain price ranges.

Decentralized exchanges (DEXs) like Uniswap and PancakeSwap have undoubtedly changed the way crypto enthusiasts trade and invest. Unfortunately, drawbacks like low liquidity and high slippage have prevented DEXs from fully overtaking their centralized counterparts. However, platforms like Izumi Finance and its liquidity mining scheme, LiquidBox, are designed to solve two core DEX problems: incentive inefficiency and the Pool 2 dilemma. 

One way that Izumi Finance’s protocol solves incentive inefficiency is its concentrated liquidity mining model. The protocol achieves this with its fixed reward price range for stablecoins and pegged assets. By evaluating the total effective liquidity in the price range, and assigning incentive linearly according to the proportion held by each LP, slippage inefficiencies are minimized and liquidity is gained at this price range.

Although yield farming on traditional DEXs can be lucrative, it can often lead to impermanent loss due to volatility in token prices. Additionally, Izumi Finance combats the Pool 2 dilemma with its one-sided, non-impermanent loss mining model. Izumi accomplishes this by setting up the pair’s stablecoins to be sold only within a specific price range, and ensuring the LP’s project tokens are placed in the staking module instead of the trading pool. Overall, this innovative LaaS model lowers the risk of impermanent loss, and will attract more liquidity.

IZI Tokenomics





Overall, there’s a maximum supply of 2 billion ERC20-based IZI tokens, which will be distributed over the next four years, according to the chart shown above. Of this total supply, 1.1 billion IZI tokens will be reserved for the growth of the Izumi Finance ecosystem. Interestingly, despite being the platform’s utility token, IZI tokens aren’t used for governance. Rather, users have to use ve-iZi tokens so they can participate in governance and enjoy numerous benefits, which include the following:

• Boosting: ve-iZi token holders can earn a bonus on the Uniswap v3 liquidity mining incentives.

• Dividends: holding ve-iZi tokens nets you a portion of the ecological revenue that comes from cross-chain and pool setup fees.

• Proposals and voting: ve-iZi holders can initiate and vote on DAO proposals to dictate the future of Izumi Finance.

Are IZI Tokens a Good Investment?

Because Izumi Finance addresses existing concerns about Uniswap v3, we’re confident that IZI tokens are a good investment in the long run. In addition to supporting one of the most popular DEXs in the crypto space, IZI tokens display plenty of utility — which makes HODLing the tokens a viable investment. One thing to note is that ve-iZi tokens are not tradable or transferable, and can only be obtained by staking IZI tokens, with the ve-iZi amount earned proportionally to the IZI tokens staked. This ultimately increases the long-term value of IZI tokens, as users are encouraged to stake them and enjoy the utility that comes with ve-iZi tokens.

Additionally, a quick glance at Izumi’s road map reveals detailed plans to develop cross-chain liquidity swaps for increased liquidity, a multi-validator relay network for better security, and a concentrated liquidity AMM bridge so capital efficiency is maximized. WIth institutional backers like Mirana Ventures, IOSG Ventures and Cadenza supporting the project, Izumi Finance certainly has the funding to set out and achieve its vision of making LiquidBox a mainstay in the DEX space.

Ready to try out Izumi Finance and give IZI tokens a shot? Click the link below to enter.