Announcing the 3rd Initial Bond Voucher Offering with Solv Protocol — $CAKE Bond

What is Bond Voucher?

Bond Voucher, powered by Solv Protocol, is the first on-chain bond product. Designed as a zero-coupon bond with an embedded Euro-style call option that allows DAOs to borrow at low costs with no liquidation risk, the Bond Voucher has enabled projects such as Perpetual Protocol, Unslashed Finance, Strips Finance, and iZUMi Finance to raise over $24M for treasury diversification or general financing purposes since its launch in February 2022.

Details of the 3rd Round of Bond Voucher Offering

Use of Fund

The fund raised via CAKE Bond Voucher will be used to provide liquidity on iZiSwap. iZiSwap is the first decentralized exchange (or DEX) that adopts 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.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.

Expected returns

The exact amount and currency in which the CAKE Bond Voucher repays the investors at maturity is subject to IZI token’s 7-day average price before the maturity date.

Why Bond Farming?

  • For bondholders, Bond Farming enables higher profit (2~4 X compared to normal farming APR), and gives the opportunity to have the risk exposure to two tokens (bond & call option), while still keeping low risks.
  • For protocols (For example, a DEX), bond farming with iZUMi Finance could help them attract better on-chain liquidity on DEXs, with higher efficiency of liquidity incentives, which is vital to the survival in a bear market. It’s a win-win situation for both the liquidity providers and the protocols if they adopt Bond Farming on iZUMi.

Asset Security

  • The funds raised through Bond Vouchers will be stored in the multi-sig wallet co-managed by Solv, iZUMi, and Cobo. The wallet will then be used to add liquidity to the iZiSwap pool vault on iZUMi. At maturity, the fund will also be claimed through this wallet to maintain transparency for the use of the raised fund.
  • iZUMi will collateralize 2.13 million USD worth of iUSD tokens (over collateralized).
  • iZUMi will use the Treasury wallet to sign the Repayment Statement via EthSign. At maturity, iZUMi promises to repay the principal and the interest.
  • iZUMi’s smart contract has been audited by Certik and Blocksec

Previous Bond Voucher Sales & Successful Repayments

By far, iZUMi Finance has held a total of two rounds of Bond Voucher sales via Solv Protocol, with all rounds having been successfully repaid with principal and interest. In the first round of Bond Voucher sales, 3M BUSD worth of Bond Voucher was sold out in 17 minutes, with another 5k WBNB worth being sold out in under two hours.

Rules for Bond Redemption

When the maturity period ends, if the market price of iZi is above 0.015 CAKE, the bond will be automatically converted to iZi tokens to maximize bondholders’ profit (in USD). If bondholders did not wish to exercise the option, they may return the bond NFT to iZUMi’s wallet address within 48 hours of the end date and be returned with their principal and accrued profit in $CAKE token.

About iZUMi Finance & iZiSwap

iZUMi Finance is a multi-chain DeFi protocol providing One-Stop Liquidity as a Service (LaaS).

About Solv Protocol

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.

About Cobo Safe

Cobo Safe is DaaS (DeFi-as-a-Service) in the smart contract based environment, powered by Gnosis Safe.

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iZUMi Finance

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iZUMi Finance: A Multi-chain DeFi Protocol Providing One-Stop Liquidity as a Service; Twitter:twitter.com/izumi_Finance; Discord: discord.gg/izumifinance