iZUMi to Issue Two Bond Vouchers Worth $5 Million in Total through Solv
iZUMi Finance will be issuing two Bond Vouchers with a total value of 3 million BUSD and 5,000 WBNB on Solv IVO Marketplace-BNB Chain.
This May 5th, 2022, iZUMi will be issuing two Bond Vouchers with a total value of 3 million BUSD and 5,000 WBNB on Solv IVO Marketplace-BNB chain. This marks the first time in history the Bond Voucher is issued on the BNB Chain and offers two payment currencies for investors to choose from: BUSD and WBNB. The APR for IZUMI Bond Voucher is 15%* for investors paying in WBNB and 13%* for those paying in BUSD.
*Of this APR, 3% is provided by Solv in the form of SOLV Voucher, as Solv’s token of gratitude to investors of the Bond Voucher and its hope to work hand-in-hand with these investors to explore the potential of the Web3 financial market! :)
How Bond Voucher Works
The Bond Voucher as an intelligence-embedded financial NFT can do the following:
- Receive and lock an amount of token collateral (that is sufficient to exercise the embedded call option).
- At maturity, charge the issuer stablecoin for principal repayment and accrued interest
- Send stablecoin payment to the investor’s wallet.
- Pay back the investors in native tokens if the call option is exercised.
Essentially, the Bond Voucher is a zero-coupon bond with an embedded call option. The zero-coupon bond within the Bond Voucher is secured by the issuer’s credit and native tokens, and the embedded call option is fully secured by native tokens. The Bond Voucher allows debtors to leverage credit for under-collateralized loans and allows the investors to enjoy a steady income and potential free upside.
Details of IZI Bond Voucher IVO
The proceeds from this round of public offering will be used by iZUMi for the market-making for iZiSwap (BNB chain), WBNB-BUSD, and WBNB-USDT pool liquidity.
- The raised funds will be stored in the multi-sig wallet co-managed by Solv, iZUMi, and Cobo. The wallet will add liquidity to iZiSwap at WBNB-BUSD and WBNB-USDT pools. At maturity, the fund will also be claimed through this wallet to maintain the transparency of the usage of the fund.
- iZUMi will collateralize $10 million USD worth of iZi tokens and iUSD tokens, which is twice the funds to be raised.
- iZUMi will use the Treasury wallet to sign a Promise to Repay statement via EthSign. iZUMi promises that if, at maturity, the trading prices of iZi and iUSD drop below the predefined strike price, the protocol** will repay the principal plus any accrued interest to the investors.
** iZUMi’s smart contract has been audited by Certik and BlockSec.
iZUMi Finance is a Multi-chain DeFi Protocol Providing One-Stop Liquidity as a Service (LaaS). iZUMi has successfully attracted 8,000 liquidity providers and $36M TVL across Ethereum, Polygon, and Arbitrum. Built by DeFi and CEX veterans from Binance, Bybit, Huobi and degent farmers, iZUMi has partnered with 8 projects and got supported by reputable investors like IOSG, Mirana, Hashkey and GSR.
Solv Protocol is a decentralized marketplace for minting, trading and managing NFTs that represent financial rights. Solv has offered Vesting Voucher, an allocation management fundraising tool, Convertible Voucher, a structured product allowing DAOs to leverage native tokens, and Bond Voucher, the first market-tested debt instrument in DeFi that helps DAOs tap into the debt capital markets.