Why is izumi the bridge between Uniswap V3 and DeFi 2.0 — What I have learned from Messari’s 165-page Report

1,DEX — — Uniswap V3

For DEX, the liquidity mining program can attract more liquidity funds to the trading pool, provide lower trading slippage and better trading experience for DEX users, and also attract more Aggregators to place their trading volume on this DEX, thus gaining more users and trading volume. And the liquidity mining incentive brought by izumi can greatly compensate for UniswapV3’s competitive disadvantage with DEXs such as Sushiswap and Curve in terms of additional revenue.

2,Other Listing Projects

With the liquidity mining model provided by LiquidBox, project teams or DAO governance mechanisms can select a specific price range to attract more concentrated liquidity, which is especially important for stablecoins and Pegged Assets. Curve is actually doing something similar, but due to curve’s high market cap, it is costly for a project team to hope to use CRV subsidies to ensure coin price stability. izumi allows projects to spend less on liquidity incentives, get more efficient UniswapV3-based liquidity, and provide trading convenience to their own token holders.

3,Liquidity Providers & Token Holders

For UniswapV3 liquidity providers, as well as potential liquidity providers holding the corresponding tokens, the mining incentive they receive from izumi LiquidBox can significantly reverse their high probability of losses due to impermanent losses by providing liquidity for the corresponding trading pairs. It also provides an additional expected return for holding tokens in their hands, which has a positive impact on the valuation of the tokens themselves. (For more detailed analysis please refer to this link: https://izumi-finance.medium.com/uniswap-v3-user-revenue-analysis-and-how-to-improve-it-with-lp-nft-mining-558eeddd378b)



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iZUMi Finance

iZUMi Finance

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