Introduction:
Izumi Finance offers an innovative Liquidity as a Service (LaaS) on Ethereum through Uniswap V3. They are planning to expand this liquidity service to other blockchains with a built-in decentralized exchange (DEX). By utilizing this service, liquidity providers can earn additional rewards from liquidity mining and trading fees on Uniswap V3. Additionally, protocols can attract liquidity in a more effective and sustainable manner.
Izumi Finance improves the efficiency of incentives through their LiquidBox feature. This allows protocols to distribute rewards to liquidity providers within specific price ranges. As a result, liquidity providers can earn higher trading fees while maximizing their capital efficiency. They can also benefit from additional incentives offered by related protocols. For example, stablecoin pools only distribute rewards within a narrow price range (0.99, 1.01).
The platform addresses the challenges posed by the "pool 2 dilemma" by offering structured incentives and auto-rebased modules. This strategy helps attract liquidity with a low emission rate for protocols, while enabling liquidity providers to participate in non-impermanent loss liquidity mining. This resolves the issue of high inflation rates and sell pressure often associated with high Annual Percentage Rate (APR) liquidity mining incentives in the second pool.
Liquidity as a Service (LaaS) Roadmap:
a. LaaS on Uniswap V3: LiquidBox
The LiquidBox feature provided by izumi Finance offers programmable liquidity mining tools, utilizing Uniswap V3 LP NFT. These tools empower protocols to incentivize liquidity provision efficiently within specific price ranges. Users are encouraged to stake Uniswap V3 LP tokens to earn additional rewards.
b. Discretized liquidity Automated Market Maker (AMM) on multi-chains: iZiSwap
IZiSwap aims to extend the concept of concentrated liquidity services, similar to Uniswap V3, to multiple blockchains. It will support limit orders and be compatible with orderbooks and Uniswap V3, enhancing capital efficiency across various blockchains.
c. Concentrated liquidity service on bridge: C-AMM Bridge
In the era of multiple blockchains, there is a need for fast, decentralized, and auto-rebalanced cross-chain bridges. Izumi's C-AMM bridge ensures cross-chain transactions are completed in less than one minute with low gas fees. Multi-validator relay networks guarantee cross-chain safety, emphasizing decentralization and transparency.
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