iZumi Finance Enhances Swap Model, Raises $30 Million

iZumi Finance, a multi-chain DeFi protocol, has announced the launch of iZiSwap, its next-generation DEX on the BNB Chain. The company has also just received $30 million in funding from investors to develop its network. The proceeds from the sale of Bond Vouchers and iUSD claims will be used to finance iZiSwap’s initial liquidity provision. A total of $20 million came from institutional investors led by Ivy Ventures, Cobo, and Mirana. Out of that amount, the sale of Bond Vouchers on Solv Protocol raised an additional $11 million. 

There was an extremely high demand from the community for the iZUMi Bond Voucher, as evidenced by the fact that $4 million BUSD worth of vouchers sold out within just 17 minutes. It also sold out in less than three hours 5,000 BNB worth $2 million USD. With the launch of iZUMi Bond USD, investors have new options within the iZUMi ecosystem. The iZUMi Finance protocol needs money to expand its product ecosystem, and this bond will help them do that.

How different is iZuMi Swap?

An innovative Limit Order feature that assures no slippage and lower trading fees is now possible thanks to iZUMi’s Discretized-Liquidity-AMM (DLAMM). DLAMM improves on the Concentrated Liquidity Model (CLM) first used by Uniswap V3 to make liquidity positions effective at particular price ranges.  In comparison to DEXs that used the standard xy=k V2 AMM model, the DLAMM model has greatly increased capital efficiency.

Since its soft launch on May 7, iZiSwap has successfully accrued over $13 million in Total Value Locked (TVL) and produced over $500,000 in trading volume as of May 18.

What does iZumi Bond USD bring?

Bond Farming on iZUMi is a huge win for both the liquidity suppliers and the protocols. It has ushered in a new era of liquidity mining by guaranteeing the principle and interest payments to investors. Notably,  Bond Farming’s profits first go towards paying back investors and then rewarding market participants, as stated above. There is a 1:1 peg between iZUMi’s collateral and its future revenues for iUSD. Also, there’s a guarantee that the supply is will never exceed the total value of iZUMi Treasury.

Bond Farming reduces the danger of short-term loss while increasing profit for liquidity providers. In a weak market, Bond Farming provides protocols with a more cost-effective method of giving rewards.