Earning rewards and yields is one of the major benefits of DeFi. However, these rewards need to be distributed to users of the DeFi platform effectively and efficiently to uphold the transparent feature of DeFi.
Thus, the need for a platform that improves the effectiveness of incentive distribution for reward suppliers while also increasing the profitability of liquidity providers in Uniswap.
iZUMi Finance helps to achieve this seamlessly. iZUMi Finance is a non-homogeneous liquidity mining technology that offers Uniswap LP token staking incentives in various price ranges.
IZUMi Finance offers Programmable Liquidity as a Service (LaaS) on Ethereum via Uniswap V3 and will expand the liquidity service to multi-chains through a built-in Decentralised Exchange. Uniswap V3 will assist liquidity providers in earning more liquidity mining rewards and trading fees. On the other hand, it will assist processes in attracting money in a more efficient and long-term manner.
Meanwhile, capital efficiency could help liquidity providers earn higher trading fees and receive more incentives from linked protocols. iZUMi overcomes the “pool 2 dilemma” by providing structured-incentive and auto-rebased modules, attracting additional liquidity with a low emission rate for protocols while allowing liquidity providers to mine non-permanent lost liquidity.
Features of IZUMi Finance
Safe to farm: The platform’s fully decentralized and non-custodial functionality can keep the users’ principle in Uniswap safely.
Easy to use: iZUMi provides the users with the ability to deposit, zap, harvest, and withdraw their assets all in just one click.
High Yield Return: With iZUMi, users can stake to earn Liquidity Provider fees and benefits for mining liquidity at the same time.
The IZUMi Tokens
There are two tokens for iZUMi Finance, namely;
1. iZi token: The iZi token is the utility token for the iZUMi platform, and it may be used to pay for cross-chain trade costs, incentive pool setup, and other features. To obtain ve-iZi tokens, users must also invest iZi tokens.
2. ve-iZi token: The ve-iZi token is the governance token for the iZUMi platform. This token is fully designed to represent the governance rights of iZUMi Finance. The voting power of this governance token is found through the locked iZi number and time. The ve-iZi token works well with the ERC721 standard, which can be traded like any other NFT.
Functions of ve-iZi Token
Boosting: ve-iZi will be utilized to increase the Liquid Box pool APR to 2.5x with NFT staked. By taking the smaller two values, the boost mechanism will calculate the users’ earning weight.
The first value is straightforward: the amount of vliquidity derived from the UniV3 LP NFT that the user bets on the iZUMi platform. This is the greatest amount you can earn. The curve boosting algorithm is the foundation of the algorithm.
Staking: Every month, 50% of platform earnings will be utilized to purchase back iZi and distributed to ve-iZi holders based on voting power. Staking incentives of 40 million iZi per year will be sent to ve-iZi holders throughout the first four years.
Voting: DAO governance and Quadratic voting will be used to decide on crucial topics. The iZi emissions for each cycle will be calculated and allocated based on ve-iZi voting power. The owner of the ve-iZi might transfer the right to vote to another address.
iZUMi’s Liquid Box is a liquidity mining scheme based on Uniswap V3 NFT LP Tokens. Unlike typical V2 fungible LP tokens that are directly staked for mining, the protocol can establish the value range of the incentivized LP tokens when defining the liquidity mining incentive plan in Liquid Box.
To satisfy the demands of project participants, izumi Finance offers a variety of liquidity options. Here are some reasons why the Protocols need liquid Box to earn liquidity.
1. iZUMi Liquid Box may issue liquidity mining incentive tokens in specific price ranges, such as [0.95,1.05], to maintain stable coins or pegged-asset prices.
2. iZUMi Liquid Box allows liquidity mining incentive tokens to be mined in the current price range to compensate for the temporary loss caused by price changes over a given time interval.
3. Protocols with additional awards equal to trading fees to incentivise professional market makers
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