Izumi, an innovative protocol that offers programmable liquidity mining on Uniswap V3 just completed its series A fundraising round of $3.5 Million, bringing the total amount raised to $ 5.6 million.
The funds acquired will aid izumis native token (iZi) launch which is set to happen on December 20. On December 21, they will also launch the izumi ‘LiquidBox’ clude platform. some of the investors that participated in the Series A fundraiser include 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 intends to build an innovative tool that will be of value for the DeFi ecosystem, following the launch of Uniswap’s V3.
Following the innovative liquidity model in Uniswap V3, most liquidity providers are now able to link their assets to many tight price ranges, a characteristic that will aid them by capturing more transaction charges for the same investment.
Regrettably, studies have shown that investors are more likely to lose capital because of the impermanent loss that is increased. Defining stiff price ranges translates to being left exposed if the prices move out of the range.
Izumi’s liquidity mining tool, LiquidBox will solve several issues in the classic Uniswap V2 design and Uniswap V3 mining. This feature will allow inventors to increase their earnings and for projects to efficiently attract liquidity with token rewards. which happens because of the LiquidBox design of assigning reward tokens conforming to specific rules to achieve the best end result for the projects. One model for instance involves offering purchase side liquidity to Uniswap V3 then using the other section of the portfolio to harvest rewards directly. This guarantees the user only suffers some drawback temporarily but nothing on the upside. izumi also has some innovative features like providing liquidity to set out ranges resolving the ‘pool2 dilemma’ of excessive dilution.
izumis models are customizable creating a win-win situation for the projects as they can have cheaper and larger liquidity pools and the users who earn by staking their token on izumi.
Co-founder of IOSG , Xinshu Dong, said:
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!”
Jimmy Yin, co-founder of izumi Finance added:
izumi’s vision is clear and meaningful: to help projects attract on-chain trading liquidity in an efficient and continuous way .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.”