iZUMi Finance, a protocol for providing liquidity as a service (LaaS) all in one place, revealed that they had successfully raised $22 million that will be used to facilitate the launch of iZiSwap Pro, a decentralized exchange (DEX) that operates on the zkSync Era network’s order book.
Semi-fungible tokens were issued for fundraising
A DeFi protocol in a recent investment round, iZUMi Finance brought in $22 million. These funds will refine iZiSwap Pro, the company’s on-chain order book built for the zkSync era.
To facilitate the exchange of digital currencies for fiat currency or other assets, IZUMi offers a liquidity-as-a-service platform.
According to DeFi Llama, iZUMi is currently valued at $25.3 million, the value of its locked assets. Automated market makers (AMM) help keep fees low, and custody risks low on IZiSwap Pro, a decentralized exchange.
Its strategic partner, Solv Protocol – a semi-fungible token (SFT) iZUMi established an iZUMi zk-Fund to raise capital, which differs from the more common “cash in, equity out” models.
For instance, purchasers of the fund are issued SFTs representing their proportionate interest as limited partners. They can get back their initial investment when it matures.
Unicode Digital, NextGen Digital Venture, Bella Protocol, and Incuba Alpha were some of the investors in this round.
According to the ERC-3525 token standard developed by Solv, “iZUMi zk-Fund” is a semi-fungible token (SFT). Investors become Limited Partners (LPs) of the fund when they purchase and receive a new SFT in their wallet that represents their investment in the fund.
These SFTs are illustrative, just like NFTs, and computable, like ERC-20 Tokens. Profit and loss (PnL) and net asset value (NAV) data are available in real-time for investors to view in a comprehensive dashboard. Principal invested in SFTs by LPs is redeemable at maturity.
iZuMi Finance past campaign activities
iZUMi Finance increased the ecosystem with the help of a $30 million investment and the launch of their next-generation decentralized exchange (DEX) iZiSwap on the BNB Chain. Along with the release of their new dollar-pegged, 100% collateral-backed bond iUSD, iZUMi has implemented the Discretized-Liquidity-AMM model.
The initial liquidity provision of iZiSwap’s launch was supported by $30 million raised by iZUMi through the issuance of bond vouchers and iUSD claims. The funding round totaled $20 million from investors like Ivy Ventures, Cobo, Mirana, and others.
After 17 minutes of the raising, $4 million BUSD worth of iZUMi bond vouchers had been purchased, and another 5,000 BNB (equal to $2 million USD) had been purchased in less than three hours, demonstrating the high demand for this product.
As a system for offering liquidity on Uniswap V3, izumi Finance managed to attract $2.1 million in funding from a wide range of DeFi and crypto backers.
A problem with Uniswap V3’s concentrated liquidity pools is the focus of the izumi protocol, which seeks to innovate upon traditional Uniswap V2-style liquidity mining to address this issue.
Izumi’s central mechanism is the ability to offer non-homogenous liquidity incentives for use with subsets of the Uniswap V3 pool’s price points. Since this is the case, projects can efficiently adjust their reward structures to achieve greater results.