- izumi Finance recently raised a total of $2.1M in a funding round.
- Several DeFi and crypto investors participated in the round.
- With this, izumi Finance aims to innovate liquidity mining with Uniswap V3 LP tokens.
Reportedly, izumi Finance has raised around $2.1M in a funding round. This amount came from various decentralized finance (DeFi) and crypto investors.
Notably, the funding round was led by Mirana Ventures, along with Everest Ventures Group, Youbi Capital, LucidBlue Ventures, Puzzle Ventures, WolfEdge, ICG, Adaptive Lab, Nothing Research, and Tess Ventures who backed the start-up in its fundraising efforts.
In detail, izumi Finance is a protocol that provides liquidity as a service on Uniswap V3. In other words, it solves a pain point in Uniswap V3 as well as its concentrated liquidity pools. At the same time, it further innovates the liquidity mining initiatives over the traditional Uniswap V2-style pools. Moreover, the key mechanism in izumi is its ability to give non-homogenous liquidity incentives that are applied to specific price varieties in a Uniswap V3 pool. Meaning, this enables projects to effectively fine-tune their rewards to achieve better outcomes. For example, izumi solves the “Pool2 dilemma” or the excessive dilution of a project’s token in the effort of steering its liquidity.
Furthermore, with the use of izumi and determining only specific price ranges wherein incentives are also demonstrated, projects will be able to utilize Uniswap V3 for their farming incentives and at the same time, not overpay for unnecessary liquidity.
Apart from this, users will have the chance to earn the most liquidity mining rewards if they can give the same liquidity as the price range specified on Uniswap V3. In other words, projects will have better, concentrated liquidity and higher capital efficiency while they launch their mining programs on izumi.
Founder of izumi Finance — Jimmy Yin, opined on the matter and said:
We are excited to build Uniswap V3 LP Staking protocols to provide non-homogenous incentives in different price ranges. This will improve the efficiency of incentive distribution for reward providers and enhance the earnings of liquidity providers as well. With izumi, Uniswap V3 will become strong competitors with Curve in the stablecoin trading market and attract more potential projects who previously planned to launch farming pools in SushiSwap. We are going to unleash the potential of financial NFTs in Uniswap V3 and extend service to the multi-chain world in the future.
On the other hand, Uniswap V3 has already attracted a few high-quality liquidity mining schemes since its launch — owing at least in part to the intricacy of its remarkable NFT-based positions. Suffice to say, the izumi project will solve this market need and take full advantage of the solutions provided by Uniswap V3; hence, creating even better incentive structures compared to the classic Uniswap V2 Pools.