SECTION 1: APPLICANT INFORMATION
Applicant Name:
Jimmy Yin
Project Name:
iZUMi Finance
Project Description:
iZUMi Finance is a one-stop liquidity platform for multi-chains. iZUMi Finance presents three products, iZiSwap, LiquidBox, and iUSD.
We are the first discretized-liquidity-AMM DEX with maximized capital efficiency. Through LiquidBox, a smart liquidity boosting and management product built on concentrated liquidity DEXs, we provided and managed over $100M liquidity for 50+ reputable partners including BitDAO/Near/Woo Network/Ankr.
Team Members and Qualifications:
Below presenting the core members of the iZUMi Finance:
Jimmy Yin, CEO
Lemon, Co-Founder
Mac Yong, CTO
Bysong, COO
Fuji, Ecosystem Lead
Larry Lee, BD lead
Yond, Marketing Manager
Mingwei, BD Manager
Jerry, Operating Manager
TingTing, Graphic Designer
Project Links:
Websit: https://izumi.finance/home
LiquidBox:iZUMi.finance
Twitter: https://twitter.com/izumi_Finance
Medium: https://izumi-finance.medium.com/
Telegram: Telegram: Contact @izumifinance
Discord: iZUMi Finance
Github: iZUMi.finance · GitHub
DefiLlama: https://defillama.com/protocol/izumi-finance
Contact Information:
TG: Telegram: Contact @larrybig
Twitter: https://twitter.com/izumi_Finance
Email: bd@izumi.finance
Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?:
Yes, we do.
SECTION 2: GRANT INFORMATION
Requested Grant Size:
200,000 $ARB
Grant Matching:
N/A
Grant Breakdown:
The budget allocation is aimed at supporting three major facets of the Arbtrum project. The structure breaks down as follows:
- 40% Liquidity Provision & Emission to Top-tier Projects on Arbitrum: This portion of the budget will go to providing one-sided liquidity and emission to top-tier projects operating on the Arbtrum network, thereby ensuring smooth transactions and reducing slippage. 40% of the $ARB grant will be evenly distributed between unilateral liquidity and emission.
- Objective: To provide adequate liquidity to leading projects on Arbitrum, thereby ensuring optimal depth in trades.
- Mechanism: The funds will be channeled into single-sided liquidity pools for pairing these head projects, specific projects list can be found in section 3.
- Emissions: $ARB emissions will be designed to incentivize participation in these liquidity pools for mining campaigns.
- 30% LP Rewards: This allocation will serve as incentives for liquidity providers who facilitate trading by depositing assets into liquidity pools.
- Objective: To incentivize liquidity providers to participate actively.
- Mechanism: Rewards will be distributed through liquidBox linearly.
- Pools: ETH/USDC(15%), ETH/ARB(15%)
- 30% $ARB Rewards for Traders: This segment is aimed at encouraging trading activity on iZiSwap by offering $ARB token rewards to active traders.
- Objective: To boost trading activity and engagement on the platform.
- Mechanism: Implementing reward programs that distribute $ARB tokens to high-volume traders. Trading contests for example.
- Criteria: Performance metrics like trading volume, frequency, and others will be used to determine reward eligibility.
This budget plan is aimed at creating a comprehensive ecosystem that attracts and retains various stakeholders, including projects, liquidity providers, and traders. All ARB grants received will be exclusively channeled into building and enhancing the Arbitrum ecosystem. iZUMi team dedicated to creating a sustainable and robust on-chain liquidity platform that benefits all participants.
Funding Address:
0x9aCb5f8f97db847D5B3AD88d168986fb83D32B8e
Note: Funds from this address will be sent to multiple smart contracts that will be deployed later on, and distributed according to the ‘Grant Breakdown’ section.
Funding Address Characteristics:
Address given above is a 2/3 Gnosis Multisignature wallet. The private keys are securely stored.
Distribution Contract Address:
Specific contracts will be deployed at the later stage and the addresses will be publicly available. Initially, the funds will be securely kept in a 2/3 multisig wallet.
Incentivized Contract Addresses:
Specific contracts will be deployed at the later stage and the addresses will be publicly available. Initially, the funds will be securely kept in a 2/3 multisig wallet.
SECTION 3: GRANT OBJECTIVES AND EXECUTION
Objectives:
As our name “iZUMi” in Japanese signifies, our ultimate goal is to help every partner and token to enjoy on-chain liquidity like spring water, continuous and long-lasting for centuries. Further, we hope to combine the DL-AMM algorithm with the ARB grant to flourish the Arbitrum ecosystem in every way.
Primary Objectives:
-
Introducing iZiSwap
We aim to introduce iZiSwap into the Arbitrum ecosystem, thereby expanding the available decentralized financial services on the network. Our unique DL-AMM model and on-chain order book function will serve as a robust liquidity and trading platform within Arbitrum. These objectives align closely with the goals of improving scalability, liquidity, and overall user experience within the Arbitrum environment. -
To Enhance Liquidity and attract TVL on Arbitrum
The grant aims to improve the trading experience by reducing slippage and ensuring seamless transactions for top-tier projects on the Arbitrum network. The provision of liquidity is an essential aspect of this objective.
- By allocating 40% of the grant towards providing one-sided liquidity to head projects, we expect to deepen the pool and minimize slippage, thus enhancing the trading experience. Half of which will be used for mining incentives.
- In addition to fostering native projects, iZUMi team will actively seek to onboard leading projects from other ecosystems to the Arbitrum chain. Specifically, Izumi will extend invitations to partners from other blockchains with 1 million+ TVL to build and liquidity deployment on the Arbitrum network.
- To Incentivize Liquidity Providers
A significant portion of the grant will be dedicated to rewarding LPs who actively contribute to liquidity pools. The intention is to foster a reliable and robust liquidity framework, making the platform attractive for both traders and projects.
- The allocation of 30% of the grant for LP rewards aims to build a strong community of liquidity providers who are committed to the long-term success of the platform.
- To Stimulate Trading Activity on Arbitrum
Encouraging a high trading volume is essential for any trading platform, and the grant aims to incentivize this via $ARB token rewards for active traders.
- Allocating another 30% for trading incentives should stimulate trading activity, attract new traders, and maintain high user engagement.
Overall, the judicious use of the grant should lead to a more vibrant and sustainable ecosystem, enhancing the Arbitrum network’s appeal to various stakeholders including traders, project developers, and liquidity providers.
Key Performance Indicators (KPIs):
- Total Value Locked：
TVL of different pools show liquidity depth: Measure the amount of assets locked in liquidity pools for top-tier projects, aiming to see a consistent increase. Specifically:
- TVL of existing trading pools before incentives
- TVL of new trading pools involving existing projects after $ARB grants
- Total Number of LPs: serves as a growth indicator to track the participation level of liquidity providers, ensuring that our stakeholders can monitor the inflow of liquidity into the ecosystem.
- All records of added liquidity by liquidity providers will be publicly disclosed.
- Trading Volume: Monitor the total count and volume of successful on-chain swaps. Daily, weekly, and monthly trading volume in USD.
- Daily trading volume
- Daily trading fees generated
- Active Users/ Token Pairs: Number of unique traders and token pairs engaging with the platform daily, weekly, or monthly.
- Cumulative number of unique wallets
- Cumulative number of token pairs on iZiSwap
- Community Engagement: Track metrics like active forum participation, webinar attendance, etc.
- Discord numbers
- Telegram numbers
- Reach and engagement levels on Twitter
Each KPI will be tracked at regular intervals, such as weekly, monthly, or quarterly, and will be compared against baselines and benchmarks. This comprehensive set of KPIs will provide a multi-faceted view of how successfully the grant’s objectives are being achieved.
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?
Having a cutting-edge DEX is important for the Arbitrum ecosystem and for users. iZiSwap combined concentrated liquidity and order book DEX for wider user-adoption.
The DL-AMM algorithm uses a new discrete concentrated liquidity algorithm with concentrated liquidity market-making characteristics similar to Uniswap V3, but enables liquidity to be precisely distributed on any fixed prices rather than a price range. This allows iZiSwap to be more manageable in terms of liquidity and to support more trading methods, such as limit order. Limit orders will be considered as adding liquidity on one certain price tick so that you could trade with the fixed price rate as limit orders.
Securing a grant from the Arbitrum ecosystem would be pivotal for iZUMi Finance, serving as a cornerstone to expedite and scale our initiatives centered around liquidity and financial innovation. The grant would empower us to pursue several key objectives:
-
Enhanced Liquidity Solutions: With the aid of the grant, we plan to extend our LiquidBox solution to more projects within the Arbitrum ecosystem. This programmable Liquidity as a Service can make liquidity management more efficient, resulting in a smoother trading experience for traders, favorable rewards for LPs, higher TVL and income cash flows for Arbitrum and our project .
-
Expand iZiSwap’s Features: We intend to bring our DL-AMM model to Arbitrum. This will offer DEX users a CEX-like trading experience, allowing for limit orders in a non-custodial manner, which is a level of service often missing in most DEXs.
-
Launch of iUSD and iZUMi Bond on Arbitrum: Our fixed income products, iUSD and iZUMi Bond, have demonstrated strong utility. Bringing these to Arbitrum can create a more diversified financial ecosystem by adding stable, high-yield investment opportunities.
-
Optimizing Yield Mechanics: The grant will serve as a strategic enabler for refining yield mechanics on our platform. This optimization aims not only to benefit existing projects but also to incentivize new projects that are in the decision-making phase for selecting an ideal blockchain network.
Through these diversified yet interrelated initiatives, from enhancing liquidity solutions to optimizing yield mechanics, iZUMi Finance aims to act as a growth catalyst within the Arbitrum ecosystem. The grant will play a vital role in accomplishing these objectives, making Arbitrum an increasingly attractive landscape for decentralized financial innovation.
Justification for the size of the grant:
Deployed on multi-chains, including zkSync Era, BNB Chain, Arbitrum, and Ethereum, iZUMi has provided liquidity service 20+ renowned Web3 protocols, and managed over $100M liquidity from reputable institutions and 9,000 individual LPs.
-
Track Record and Team Expertise
Our team comprises 20 professionals who have been actively involved in the crypto space for over 5 years, and we’ve been deeply engaged in the decentralized finance (DeFi) sector since its boom in the summer. Our experience and industry know-how position us well for executing complex projects. -
Innovative Solutions
Our biggest feature makes us uniquely capable of bringing innovation and robust liquidity solutions to the Arbitrum ecosystem.
AMM (Automated Market Maker) is widely adopted for nearly all the DEXs for the sole reason of decentralization and permissonlessness, whilst all of them provide AMM in a continuous way, which means liquidity is spread across a continuous price range (function x*y=k).
DL-AMM of iZUMi cuts price ranges evenly into small narrow pieces (by ratio), making these price ranges as close as to 0. DL-AMM further enhances capital efficiency by making liquidity at every price range be needed. Through DL-AMM, users can trade tokens at an exact price to avoid front-run and slippage. Liquidity providers can enjoy more LP fees and high APR with maximized capital efficiency. We’re still unique in mechanics and more advanced than Uniswap V3 in terms of capital efficiency. -
Proven Success
We have been in stable operation for over two years, first or second place on some chains like Mantle, zkSync, achieving liquidity in the tens of millions of USD. Our historical 24h transactions exceed 9.6 million, with 5,925,444 unique addresses and a TVL of $107 million. These numbers are a testament to the trust and adoption we’ve garnered. -
Financial Backing
Our fundraising rounds have successfully raised $55 million from reputable backers like Bybit, IOSG, Hashkey, FENBUSHI, MIRANA, and gate.io, providing us with the financial leverage to undertake large-scale projects. -
Strategic Partnerships
Our reputable partners like BitDAO, Dehorizon, Ankr, Woo, Zebec, and others provide us with the ecosystem support needed for collaborative and highly impactful projects.
Execution Strategy:
The collaborations will span from the point of receiving the grant until January 2024. Different cycles will target different sets of projects for collaboration. Our team of 30 seasoned professionals will be fully engaged in this initiative. Technical development, business development, and marketing units will be actively involved.
Products:
- LiquidBox for liquidity management.
- iZiSwap featuring our DL-AMM model.
- iUSD and iZUMi Bond for fixed income products.
Use of Funds:
- 40% evenly to Liquidity Provision & Emission to Top-tier Projects on Arbitrum. Intended allocations can be found later in this part.
- 30% LP Rewards evenly to ETH/USDC and ETH/ARB.
- 30% $ARB Rewards for Traders.
All grant funds received will be strictly allocated for the growth and development of the Arbitrum ecosystem, including ecosystem incentives with collaborative projects. The iZUMi team is committed to not diverting the grant funds for any purposes outside of the outlined plan and will adhere stringently to the requirements set forth for the grant’s use.
To ensure transparency and accountability, all relevant data will be made publicly available. This includes but is not limited to on-chain multi-signature wallet addresses, addresses of incentive contracts, and other pertinent transactional information. We are committed to maintaining the highest levels of transparency and integrity in the utilization of the grant funds.
Risk Management:
Other than following the requirements listed in Arbitrum Short Term Incentives Program, iZUMi team will manage risks in:
- Smart Contract Risks: We’ll engage in smart contracts with thorough audits and adopt best practices for security.
- Partnership Risks: Careful due diligence will be conducted before entering any partnerships.
40% Grant Allocations for Potential Projects:
-
First group of projects to collaborate on liquidity pools and emission incentives:
MUX Protocol, PlutusDAO, Chainlink, Camelot, Sushiswap, DeFragDAO, Umami Finance, WOOFi, Wombat Exchange, Chronos, Apollox, Dolomite, Gamma, Hegic, Lyra, Level Finance, Archi Finance, Compound, Ramses Exchange, Lodestar, Hop Protocol, shell Protocol, Convex, Plutus DAO, GND Protocol. GMD Protocol, dForce, CIAN, Vela Exchange, Silo Finance, Hyperliquid -
Second group of projects to collaborate on liquidity pools and emission incentives:
CVI Finance, Handle Finance, Wombex Finance, Rage Trade, Yama Finance, Connext, The Ennead Farm, DefiEdge, Overnight Finance, Bluefin, Dyson, Frax, Pancake Swap, Premia, SperaxTender Finance, Mugen Finance, WINR Protocol, DSU Money, Perennial, ZyberSwap, Arbitrum Exchange, HMX, UniDex -
Third group of projects to collaborate on liquidity pools and emission incentives:
We will also attract partners outside of the Arbitrum current ecosystem to come and build on Arbitrum. Notable partners of iZUMi on other chains, for example, Agni, Range, Lendle, KTX on Mantle, Velocore, Reactor, Syncswap, Mute, Rollup, Onchain Trade on zkSync.
By following this comprehensive plan, we aim to make the most out of the grant, adding significant value to the Arbitrum ecosystem while also enhancing our product offerings.
Grant Timeline: [Describe the timeline for the grant]
40,000 ARB for single side liquidity=> 16 weeks
40,000 ARB for emission=> 2500 ABR per week for 16 weeks
30,000 ARB for ETH/ARB LP incentive=> 16weeks
30,000 ARB for ETH/USDC LP incentive=>16weeks
60,000 ARB for traders=> 10k per week for 6 weeks
The timeline of grant funds distributed will be broken down into various phases, each focused on a different aspect of ecosystem growth, liquidity provision, and incentives. Here is a draft timeline:
Phases and Timeline:
Initial Setup
- Weeks 1-4: Onboarding of initial projects like MUX Protocol, PlutusDAO, Chainlink, Camelot, Sushiswap, DeFragDAO, CVI Finance, and Wombex Finance for one-sided liquidity provisioning.
- Weeks 4-6: First liquidity mining incentives go live.
Liquidity and Listings
- Weeks 4-8: Continue to add liquidity to new projects, aiming for listings of at least 2 new projects every month.
- Week 1-4: Initiate the first emission rewards for liquidity participants.
LP Incentives
- Weeks 1-10: Launch LP incentive programs. Special APY rewards will be active for the two pools to attract more liquidity providers.
Trading Competitions
- Weeks 6-12: Kick-off trading competitions to attract traders and enhance liquidity. The competitions will last for four weeks with rewards distributed weekly.
Wrap-up and Reporting
- Week 12-16: Finalize all activities, prepare reporting and analysis.
By adhering to this timeline, we aim to systematically utilize the grant to foster growth and innovation within the Arbitrum ecosystem, thereby aligning with the grant’s primary objectives.
Fund Streaming:
Yes
SECTION 4: PROTOCOL DETAILS
Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.
Is the Protocol Native to Arbitrum?:
No
On what other networks is the protocol deployed?:
Mantle (10.5M), zkSync (8.63M), Linea (1.99M)
What date did you deploy on Arbitrum?:
2022 March 28th: LiquidBox of iZUMi was deployed on the Arbitrum
Protocol Performance:
Our protocol has exhibited strong performance since its inception, on the Arbitrum network where our TVL has reached $1.5 million. When considering Pool2, our TVL skyrockets to an impressive $10.78 million, according to Defillama.
In addition to our financial metrics, we have a track record of successful collaborations with reputable projects in the blockchain ecosystem. These partnerships have not only broadened our user base but have also enhanced the range of financial products and services we can offer.
- Joint liquidity USDT/USDC Mining Pool (600,000 $iZi & 120,000 $Yin)
- iZUMi joining the Arbitrum Odyssey
- 900,000 $iZi mining emission of iUSD/USDT pool
- liquidity providers of APEX/ETH (200,000 $esAPEX and 300,000 $iZi)
- $ARB RUSH campaign
Protocol Roadmap:
Following roadmap is designed to not only meet the grant objectives but also to build a robust and enduring ecosystem around our DEX offering. Here’s how the protocol roadmap could look, aligned with the previously mentioned timeline:
Protocol Roadmap:
Q3 2023
- Initial DEX and Ecosystem Setup
Onboarding of initial projects and liquidity provisioning
UI/UX upgrades - Liquidity, Listings, and Partnerships
First liquidity mining incentives go live
Secure partnerships with new projects and improve listings, while attending global blockchain conferences to expand network and influence
Initiate the first emission rewards for early participants - LP Incentives and Product Upgrades
Roll out the LP incentive programs, coinciding with further DEX product enhancements like mobile accessibility and optimized trading algorithms. - Community Engagement and Trading Competitions
Host trading competitions and liquidity mining events, running in parallel to community outreach programs at various international blockchain conferences.
Q4 2023
- Emission Adjustments and Feedback Loop
Review and adjust emission rewards based on performance metrics and community feedback, taking the opportunity to fine-tune DEX functionalities based on user experience reports. - Reporting, Audit, and Future Planning
As we prepare to close the incentive cycle, a comprehensive audit will be conducted, including but not limited to, the utilization of the grant funds, performance metrics, and community engagement. Planning for subsequent quarters based on lessons learned and performance metrics.
By following this roadmap, we aim to seamlessly integrate the objectives of the Arbitrum grant with our long-term protocol and product goals, thereby ensuring sustained growth and innovation in the Arbitrum ecosystem.
Audit History: [Provide historic audits and audit results]
SECTION 5: Data and Reporting
Is your team prepared to create Dune Spells and/or Dashboards for your incentive program?
Yes, our team is fully prepared to use Dashboards to closely monitor and publicly display the key performance indicators for our incentive programs. We recognize the importance of transparent data analytics in ensuring the success of these programs and building trust within the community.
Our dashboard will feature real-time statistics on liquidity TVL, token pools, trading volumes, emission rates, and LP txns among other metrics. This enables both participants and stakeholders to have an immediate and accurate understanding of the program’s performance.
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?
Yes
Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?
Yes