Bond Issuance Announcement #7: IZI Bond Voucher
This August 17, iZUMi Finance will issue its 4th IZI Bond Voucher on Solv IVO Marketplace–BNB Chain, at an 18% APY–4 times CAKE’s flexible staking on Pancakeswap at a 4% APY. iZUMi plans to raise $1 million USD in CAKE from the sale to provide liquidity to its native DEX, iZiSwap.
The exact amount and currency in which the IZI Bond Voucher repays the investors at maturity are subject to the IZI token’s 7-day average price before the maturity date.
At maturity, if IZI’s market price is above 0.015 CAKE, the Bond Voucher will be converted to IZI tokens automatically to maximize bondholders’ profit (in USD). If the bondholders do not wish to exercise the option, they may return the Bond Voucher to iZUMi’s wallet address within 48 hours after maturity and receive their principal and accrued interest in CAKE token as repayment.
iZUMi’s official wallet address (BEP20): 0x4D9EB5BE0aE58D5a6c32A816702d89af8AE7a096
Use of funds
The net proceeds from the sale of this IZI Bond Voucher will be used under the joint custody of Solv Protocol, iZUMi Finance, and Cobo to provide liquidity to iZiSwap. iZiSwap is the first decentralized exchange (or DEX) that adopts the discretized-liquidity AMM model, or DLAMM, which significantly enhances capital efficiency by allowing the liquidity to be deployed in every price tick and reducing slippage when swapping tokens.
Bond farming: A new paradigm of yield farming
The income generated from the liquidity provision will first be used to repay the investors of the Bond Voucher and then reward the market makers. This way, CAKE holders could earn rewards now by investing in the IZI Bond Voucher as opposed to staking a trading pair into a liquidity pool like PancakeSwap.
Using EthSign, iZUMi will sign an on-chain Issuance and Redemption statement outlining its commitment to repay the Voucher. When the Voucher matures, the borrowed funds and accrued interest will be deployed from the multisig Cobo Safe to Solv’s smart contract to pay the investors.
iZUMi will (over)collateralize the issuance with $2.13 million USD worth of iUSD tokens.
There are three risk factors associated with IZI Bond Voucher:
- Volatility of IZI token.
- Protocol security of iZUMi. The protocol’s smart contract has successfully passed the audits by Certik and BlockSec and has not suffered any security vulnerabilities or loss of users’ funds.
- iZUMi’s creditworthiness. We have found iZUMi Finance to be creditworthy. It has made three rounds of bond issuances in the past through Solv Protocol and has repaid all its debts in a timely manner.
About iZUMi Finance and iZiSwap
iZUMi Finance is a multi-chain DeFi protocol providing One-Stop Liquidity as a Service (LaaS).
Currently, iZUMi Finance has two major liquidity services: LiquidBox and iZiSwap. LiquidBox is iZUMi Finance’s programmable liquidity mining protocol based on Uniswap V3, providing a non-custodial solution for liquidity mining. iZiSwap is the first decentralized exchange (DEX) that adopts Discretized-Liquidity-AMM, or DLAMM, model, aiming to maximize capital efficiency.
About Cobo Safe
Cobo Safe is DaaS (DeFi-as-a-Service) in the smart contract-based environment, powered by Gnosis Safe.
Cobo Safe solves the limitations of existing multi-signature wallets by letting teams collaborate in accessing DeFi protocols without sacrificing efficiency for security. The focus is on role delegation and risk management through limiting operators’ access to protocols and actions and even controlling the parameters to granular trading pairs and limits.
About Solv Protocol
Solv Protocol is a decentralized marketplace for trading and creating financial NFTs and other Web3 digital assets.
Featured assets of the Solv marketplace include Vesting Voucher, an allocation management fundraising tool, Convertible Voucher, a structured product allowing DAOs to leverage native tokens, Bond Voucher, the first market-tested debt instrument in DeFi that helps DAOs tap into the debt capital markets, and Dream Voucher, a lightweight solution for untokenized projects to bootstrap their communities.