izumi Finance, a protocol that’s focused on providing liquidity as a service through Uniswap Ver 3.0, has raised $2.1M in funding from established decentralized finance (DeFi) industry investors.
Izumi’s round has was led by Mirana Ventures and includes participation from Everest Ventures Group, Youbi Capital, LucidBlue Ventures, Puzzle Ventures, WolfEdge, ICG, Adaptive Lab, Nothing Research and Tess Ventures.
As noted in the update, the izumi protocol is built to address a significant pain point in Uniswap V3 and its concentrated liquidity pools (LPs), while enhancing liquidity mining efforts over more conventional Uniswap V2-style pools.
As mentioned in a release, the primary mechanism behind izumi is the ability to provide non-homogenous liquidity rewards/incentives that get applied to particular price ranges of a Uniswap V3 pool. This allows projects to enhance their rewards so they can attain improved outcomes. For example, izumi aims to resolve the “Pool2 dilemma,” or the “excessive” dilution of a project’s token as part of a move to bootstrapping its liquidity.
By using izumi and offering only a select few price ranges where incentives are being provided, initiatives can use Uniswap V3 for farming incentives, while not being required to overpay for liquidity they might not be needing in the first place.
Users can earn the largest liquidity mining rewards if they can provide liquidity that is the same as the real price range on Uni Version 3.0.
As explained in the release, this means that projects can have considerably more concentrated liquidity and improved capital efficiency while also launching the liquidity mining program through izumi.
After its launch, Uniswap Version 3.0 has been attracting few quality liquidity mining schemes, which may be attributed to the complexity of its (non-fungible token) NFT-based positions.
As noted in the announcement, the izumi project caters to this market requirement and benefits from the flexibility provided with Uniswap V3 to form better incentive structures compared to those offered via the conventional Uniswap V2 pools.
Jimmy Yin, Founder of izumi Finance, stated:
“We are excited to build Uniswap V3 LP Staking protocols to provide non-homogenous incentives in different price ranges. This will improve the efficiency of incentive distribution for reward providers and enhance the earnings of liquidity providers as well With izumi, Uniswap V3 will become strong competitors with Curve in the stablecoin trading market and attract more potential projects who previously planned to launch farming pools in SushiSwap. We are going to unleash the potential of financial NFTs in Uniswap V3 and extend service to the multi-chain world in the future.”
As mentioned in the release, izumi Finance is the platform providing liquidity as a service via Uniswap V3 and intends to further expand the concentrated liquidity service for the multi-chain ecosystem.
izumi proposes “non-homogenous” liquidity mining protocols to provide Uniswap V3 LP token staking rewards non-homogeneously in different price ranges, which could improve the efficiency of incentive distribution for reward providers while also enhancing the net earnings of liquidity providers (LPs) through Uniswap V3.
izumi has also formed a C-AMM bridge to link up Uniswap V3 with different chains and extend the concentrated liquidity service to a larger number of users.