izumi Finance is building a Liquidity as a Service platform powered by Uniswap V3, along with a built-in multi-chain DEX. The project also aims to introduce new liquidity mining approaches that help other protocols draw in liquidity more effectively by allocating incentives across selected price bands.

izumi Finance offers “Liquidity as a Service” (LaaS) on top of Uniswap V3, targeting two issues: incentive inefficiency and the “pool 2 dilemma.”

The platform improves incentive efficiency by enabling “non-homogenous” Uniswap V3 liquidity mining, allowing protocols to distribute reward incentives within specified price ranges. For example, stablecoin pools only release incentive rewards within a tight band (0.99,1.01).

To address the “pool 2 dilemma,” izumi introduces structured-incentive and auto-rebase modules. These are intended to pull in more liquidity for protocols using a low emission rate, while also supporting non-impermanent liquidity mining for liquidity providers. (Pool 2 dilemma: high APR liquidity mining incentives in pool 2 often lead to higher inflation and increased sell pressure.)

iZi token 

iZi token is the utility token for the izumi platform. It can be used to cover cross-chain trading fees, set up incentive pools, and use v3Toolbox.

In addition, users must stake iZi token to receive ve-iZi token, which serves as the platform’s governance token. ve-iZi can grant holders access to a variety of benefits and allows them to participate in governance.

ve-iZi token

ve-iZi cannot be traded or transferred and is only obtainable by staking iZi tokens. The size of a user’s ve-iZi balance depends on how many iZi tokens are locked and how much time remains until unlock. The ve-iZi balance decreases linearly as the lock time runs down. Locked iZi tokens can’t be withdrawn until the timelock expires, though users may extend the timelock or add more staked iZi tokens.