AMA Recap #1 Dima Introduce Izumi at YIN Finance
On November 12th, Dime, izumi’s Community Manager representative of izumi, was invited to YIN Finance’s telegram community and had an AMA session with the community. Dima introduced izumi Finance and its uniquely designed “Liquidity as a Service” module and answered questions from the community about the product details that izumi is building for the DeFi 2.0 and Uniswap V3 ecosystem.
Below is a recap of the questions and answers from the AMA session.
1, Please make an introduction about izumi Finance.
Dima: Hello everyone one more time! So I will introduce our product izumi Finance.izumi Finance is the first protocol to support Uniswap V3 “non-homogeneous” liquidity mining and extend concentrated liquidity service for multi-chains.
We provide “Liquidity as a Service” (LaaS) based on Uniswap V3 and a built-in multi-chain dex, and hope we could help Defi users to enjoy the capital efficiency.
2, LaaS seems like a pretty new concept! So what’s the pain point or problem that Izumi Finance is helping to solve here?
Dima: izumi Finance mainly solves two problems: effectively incentivizing in certain price ranges and eliminating pool 2 dilemma for both protocols and liquidity providers.
1)izumi Finance supports “non-homogenous” Uniswap V3 liquidity mining and enables protocols to distribute incentives effectively in certain price ranges, which is in great demand for stablecoin and pegged-asset issuers to attract desired liquidity in price (0.95,1.05).
2)The other problem is “pool 2 dilemma”, where high APR liquidity mining incentives of pool 2 usually brings high inflation rate and sell pressure for protocols as well as impermanent loss for liquidity providers. izumi with structured-incentive and auto-rebase modules enables non-impermanence loss liquidity mining.
3, “pool 2 dilemma” is actually a bothersome problem. There are many discussions about this problem. Why do you think your platform will attract users?
Dima: The logic is easy to understand by users. izumi Finance serves both protocols and liquidity providers.
As for protocols, izumi creates non-homogenous liquidity mining protocols to help them give incentives precisely and efficiently.
As for liquidity providers, izumi helps them to earn more incentives with their UniV3 LP tokens, they could get two parts of rewards: trading fees and incentive rewards. We call this “v3NFT farming”.
4, Interesting! “v3NFT farming”. Could you describe how to farm?
Dima: DeFi users provide liquidity on Uniswap V3 to earn transaction fees and they will also get an NFT LP token that represents their Liquidity share.They can stake their NFT LP token on izumi to start farming and earn extra incentive tokens provided by different project teams and izumi governance tokens.
izumi’s smart contract will automatically determine whether the value range of the LP tokens is within the liquidity incentive value range set by the project owner.
If it is within the range, the smart contract will issue a liquidity mining token reward for the liquidity provider based on the incentive program.
5, Wow, it seems easy and straightforward to operate. And it offers yield farming returns in two token types like SushiSwap does, right?
Dima: yeah, but it’s a little bit different because you can choose the price range of your liquidity.
6, So will there be any protocol to provide incentive tokens in izumi Finance? And could you tell us which project does Izumi Finance cooperate with now?
Dima: We are constantly probing the ecosystem for new partnerships that are mutually beneficial.We’ve already got solid support from the investors and partners like Polygon, Dodo.
We are keeping in touch with bitdao, perp . fi and Uniswap to seek more cooperation.
And of course, as a close friend of YIN, we hope we could start our cooperation ASAP.
7, what is Izumi’s future plan?
Dima: As we’ve said before, firstly we provide LaaS on Uniswap V3: v3NFT Farming. And then we think, decentralized and auto-rebalanced cross-chain bridges are needed in the multi-chain era.
So we will develop the concentrated liquidity service: C-AMM Bridge, to help cross-chain liquidity-swap.
Third, we will extend concentrated liquidity service like Uniswap V3 to multi-chains. We plan to launch Discretized Liquidity DEX to enhance capital efficiency for multi-chains.
So this is our liquidity as a service (LaaS) roadmap at the current stage.
Questions from the Community
Mark Strauss:Security is the most important thing to consider when starting up a project. How secure is Izumi Finance for users and investors?
Dima: Security is our first concern and izumi Finance wants to make 100% of users’ money.The principal of liquidity will be kept in Uniswap V3, which is very safe and accepted by over $3Billion TVL.
And izumi Finance only lets the users stake their UniV3 LP NFT (not the principal) onto izumi Farming Platform so there will be very safe and no chance for the izumi team or anyone else to access the principal.
Jonas Kahnwald: Does Izumi Finance plan to go cross chain in future?
Dima: Yes, we are planning to extend our protocol on different networks. First, we will launch UniSwap v3 liquidity mining on Ethereum. And then we will build concentrated liquidity Dex. After that we will extend to multi-chains.
Shashank: What exactly is Izumi finance? And what are the use cases of its token?
Dima: izumi Finance is an Innovative “Liquidity as a Service” platform(LaaS) based on top of Uniswap V3. Concentrated liquidity service on multi-chains.
Walter White: Who are the partners of Izumi Finance? Are there any backers of it?
Dima: Our partners are Bybit, Polygon, Dodo , Nansen, Perp and plenty of reputable investors like Mirana, Everest Ventures, Puzzle Ventures.
We are constantly probing the ecosystem for new partnerships that are mutually beneficial.
Felix: I went through your website but I am unable to find whitepaper? Where can I read more about your project and it’s details?
Dima: you can check our website(https://izumi.finance/ ) in the doc category. There you will find our whitepaper.
About izumi Finance
izumi Finance is the first protocol to support Uniswap V3 “non-homogeneous” liquidity mining and extend concentrated liquidity service for multi-chains. izumi provides “Liquidity as a Service” (LaaS) based on Uniswap V3, with innovatively designed liquidity mining modules of “Concentrated liquidity mining” model for stable assets with fixed price and “One-sided non-impermanent loss Mining” model for non-stable tokens.These structured models would support any blockchain project to better implement liquidity incentives with much higher capital efficiency and enable liquidity providers to earn extra rewards.