iZUMi has Finished the Repayment of Bond & Introduces Bond Farming
Recap on iZUMi’s Bond Voucher Sale via Solv Protocol
iZUMi Finance held its first Bond Voucher Sale with Solv Protocol on May 19, 2022, partnering Cobo Safe. Over $3M BUSD worth of Bond Vouchers were sold out in 17 minutes, with another 5000 WBNB worth being sold out in just under 2 hours.
On July 5, 2022, iZUMi Finance and Solv Protocol announced that iZUMi has successfully finished the repayment of their first issuance of bond. And now the program’s just ended, investors are able to claim their assets and rewards.
Bond Voucher Offering Details
What is Bond Farming of iZUMi Finance?
Bond Farming is the latest paradigm of on-chain financial derivatives innovation presented by iZUMi Finance and partners such as Cobo and Solv Finance.
Bond is issued by iZUMi Finance for on-chain financing, it combines the model of convertible bonds in traditional finance and the model of on-chain over-collateralized stablecoins. In the traditional financial industry, a convertible bond is a type of bond that can be converted into shares of the bond-issuing company, usually at a lower coupon rate.
iZUMi Finance issues convertible bond certificates in the form of iUSD(iZUMi Bond USD), a USD stablecoin, for institutions to provide on-chain funds. It is different from the well-known concept of USD stablecoin, and it abandons the systemic risk of algorithmic stablecoins, using transparent on-chain funds managed by smart contracts and multi-signature wallets as the over-collateral to back up the value of iUSD.
Bonds are issued through Solv Protocol, and as a convertible bond, it can support investors to convert bonds to iZi (iZUMi Governance Token) at a specific price at maturity, so that investors can also enjoy the potential investment return from iZi token appreciation.
Bond Farming Mechanism
The on-chain liquidity revenue captured by the iZUMi platform is the most direct support for Bond Farming investors’ returns. Bond Farming is a structured method of liquidity mining, providing risk-free earnings to bondholders. By guaranteeing the principal and interests paid to the investors, Bond Farming has set a paradigm shift in liquidity mining. The revenue generated by Bond Farming will first be used to repay the investors and then reward market makers.
Here iZUMi also draws on an important investment model in traditional finance — a multi-tiered investment product that provides a stable low return for investors with low-risk tolerance and a volatile high return option for investors with a high-risk appetite. In the Bond Farming designed by iZUMi Finance, institutional investors who provide investment funds directly through the purchase of bonds are said to be the investors who seek stable income in this system. The iZUMi project side and the professional market makers using iUSD are the investors who seek a high-risk appetite and high return profit margin.
This model not only greatly improves the efficiency of capital utilization, but also provides participating parties with investment options that meet their usage needs based on DeFi’s on-chain smart contracts, making it a cutting-edge innovation in the DeFi on-chain liquidity space.
Use cases for bond farming
- For liquidity providers, Bond Farming lowers the risk of impermanent loss while giving a higher and stable profit.
- For protocols, 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.
Repayment Guarantee & Securities
The funds raised were stored in the multi-sig wallet co-managed by Solv, iZUMi, and Cobo.
By using Cobo’s Cobo Safe, the wallet is able to be added to the Uniswap V3 BIT-ETH 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 collateralized 8 million USD worth of iUSD tokens.
iZUMi used 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.
Bond Voucher and iUSD are fully transparent on-chain, providing an extra layer of security for clients of iZUMi Finance. Contract addresses can be found in the following section
iUSD Token info
Type: ERC-20 Token on Ethereum Ticker: iUSD
Ethereum Contract: 0x0A3BB08b3a15A19b4De82F8AcFc862606FB69A2D
BNB Chain Contract: 0x0A3BB08b3a15A19b4De82F8AcFc862606FB69A2D
Polygon Contract: 0x0A3BB08b3a15A19b4De82F8AcFc862606FB69A2D
Arbitrum Contract: 0x0A3BB08b3a15A19b4De82F8AcFc862606FB69A2D
iZUMi Treasury On Ethereum: 0xe3071f78fbc34c0043820229283cc3b5621b75dc
Multi-sig wallet address(On BNB Chain): 0x720b037568F8c57Acee8E8a0f39473eC5407E067
When next bond sale
There will continue to be bond farming program in the future. Next round will be announced soon.
iZUMi Finance is a multi-chain DeFi protocol providing One-Stop Liquidity as a Service (LaaS).
Currently, iZUMi Finance presents 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) based on the DLAMM (Discretized-Liquidity-AMM) model, aiming to maximize capital efficiency.
The ultimate goal for iZUMi Finance is to provide continuous and efficient on-chain liquidity for various tokens. It has provided liquidity services to 10+ protocols including BitDAO, and has managed more than $60 million in liquidity assets for well-known institutions and more than 8,000 liquidity providers. Currently, iZUMi Finance has deployed its protocols on four blockchains, Ethereum, Polygon, Arbitrum, and BNB Chain. Investors include Bybit, Mirana, IOSG, Hashkey Capital, Fenbushi Capital and other top-tier institutions.
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.
It 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 operator’s access to protocols, actions and even controlling the parameters to granular trading pairs and limits. This risk-mitigated team collaboration supports custom workflows and creates a more efficient multi-signature access to DeFi where asset owners can give pre-defined operational controls to their team in a trust-less environment.