izumi, the innovative protocol that provides programmable liquidity mining on Uniswap V3, has successfully closed its Series A fundraising round of $3.5 million.
Including this last investment round, izumi has raised a total of $5.6 million. The recently acquired funds are going to facilitate izumi’s native token (iZi) launch, which will happen on December 20 and will be immediately followed by the launch of the izumi “LiquidBox” platform on December 21. The Series A fundraising has seen the participation of investors like Mirana Ventures, IOSG, Cadenza, FENBUSHI, EVG, Hashkey, GSR, CyberX, Bixin, WOO Network, Dorahacks, Gate Labs, MEXC and individual investors from Nansen, Perp, Chainlink, and Babel.
izumi is building a fresh and innovative tool that is highly needed in the DeFi ecosystem, especially after Uniswap has released its V3.
Thanks to the innovative concentrated liquidity model in Uniswap V3, liquidity providers have been able to bond their assets to one or more tight price ranges, a feature that should help them by capturing much more transaction fees for the same investment.
Unfortunately, some studies have revealed that investors actually end up losing capital due to increased impermanent loss. Defining tight price ranges means being left exposed 100% to the asset losing in value should the price break out of the range.
izumi’s innovative liquidity mining tool “LiquidBox” solves a number of issues in both Uniswap V3 mining and the classic Uniswap V2 design, allowing investors to increase their earnings and for projects to more efficiently attract liquidity with token rewards.
This is made possible by LiquidBox’s design of allocating reward tokens according to specific rules to achieve the best outcome for the projects. For example, one model involves only providing buy side liquidity to Uniswap V3 and using the other portion of a portfolio to farm rewards directly. This ensures the user only suffers some downside impermanent loss but nothing on the upside. izumi also features innovative models like providing liquidity only to specified ranges, solving the “Pool2 dilemma” of excessive dilution.
izumi’s customizable models create a win-win situation both for users, who are going to earn by staking their tokens on izumi, and for the projects, who will be able to take advantage of larger and cheaper liquidity pools.
“izumi is building another missing lego in the DeFi puzzle by helping projects achieve target liquidity distribution, including enhanced concentrated liquidity, with a suite of tools. We are very glad to be working with them on this ambitious and critical task!”
– said Xinshu Dong, co-founder of IOSG.
“izumi's vision is clear and meaningful: to help projects attract on-chain trading liquidity in an efficient and continuous way,”
added Jimmy Yin, co-founder of izumi Finance.
“LiquidBox of izumi will be our first step, and a multi-chain liquidity solution is on the way. We sincerely welcome every project to izumi to come to us for better and cheaper liquidity.”