BNB Chain Spotlight: iZUMi Finance

Last time we interviewed one of the better-known projects on BNB Chain, Alpaca Finance. If you want to read the interview, click here. Today for a change, we're bringing you a project you maybe haven't heard about yet.

The latest project under the Spotlight is iZUMi Finance, a multi-chain DeFi protocol providing one-stop liquidity as a service and deployed on chains such as Ethereum, Polygon, Arbitrum, and now BNB Chain.

Let's get into it!

Spotlight on iZUMi Finance

IMPORTANT: Please note the following content does not constitute an endorsement or approval of any of the products or services of the project, organization, or individual.

It’s great to be talking to you, Jimmy. As this is your first time under the Spotlight, let’s start with a brief introduction. Tell us what you do and what’s unique about iZUMi Finance?
Sure! What’s up everyone, this is Jimmy from iZUMi Finance. iZUMi Finance is a multi-chain DeFi protocol providing One-Stop Liquidity as a Service (LaaS). Its philosophy is that every token deserves better on-chain liquidity in an efficient and lasting way. Deployed on Ethereum, BNB Chain, Polygon, and Arbitrum, iZUMi has provided liquidity services for BitDAO and 10+ protocols, and managed over $60M liquidity from reputable institutions and 8,000 individual LPs.

How did you come up with the name iZUMi, and when was the whole idea born?
Our name “iZUMi” is originally from the Japanese language. In Japanese Kana, it’s イズミ, aka Spring or Fountain. We started this project in December 2021. And our ultimate goal is to help every partner and token to enjoy on-chain liquidity like spring water, continuous and long-lasting for centuries.

Talking about your new product, iZiSwap, what is it?
iZiSwap is a new product of iZUMi Finance. It’s a next-generation DEX on BNB Chain to maximize capital efficiency with the innovative Discretized-Liquidity-AMM model.

Can you explain the Discretized-Liquidity-AMM model in a simple way? How do we benefit from high capital efficiency?
Happy to do so! Firstly, AMM (Automated Market Maker) is widely adopted for nearly all the DEXs, while all of them provide AMM in a continuous way, which means liquidity is spread across a continuous price range. Discretized-Liquidity AMM makes liquidity deployed in every price tick and reduces slippage when swapping tokens.

Uniswap V3 introduced the Concentrated Liquidity model, making Liquidity positions effective in certain price ranges. DLAMM cuts these price ranges into small narrow pieces, making these price ranges close to 0. DLAMM further enhances capital efficiency by making liquidity at every price range needed.

How do Limit Order and no slippage work? Do I pay maker fees if I place Limit Orders?
Slippage is bad and we all hate it! Your limit order will be considered as adding liquidity on one certain price tick so that you could trade with the fixed price rate as limit orders. The Limit Order feature is FREE for users and no fee needed to be paid, that’s even cheaper than the privilege equivalent of Binance VIP 8.

Why are my assets safer at iZiSwap than at CEXs? You don’t seem to be more credible than those?
Our first priority is security. As a result, we use the "non-custodial" option. That being said, any liquidity on our iZiswap is transparent. iZUMi serves as a non-custodial DeFi platform. Any money held by the users, including LP tokens staked on the iZUMi platform, is stated in the smart contract to be returned only to the user's wallet address under any conditions. It can totally reduce security risks. It has also been thoroughly tested by Certik and Blocksec, as well as the investors' internal security teams like Bybit, Huobi, and Cobo, to ensure its safety. The "non-custodial" technique can increase iZUMi’s security level by an order of magnitude over other projects that use the controlled Vault system.

Why did you decide to build on the BNB Chain?
We will give a pretty straightforward answer. BNB Chain has the largest user base among all alt-chains besides Ethereum and can generate high enough transaction fees. We observed that 99% of DEX on BNB Chain still use the old-fashioned v2 model. We decided to present iZiSwap to the user base here on BNB Chain to help them save more and earn more!

I use other V2 DEXs such as PancakeSwap daily to do small transactions. What makes me want to use iZiSwap instead of those?Every penny counts. Of course, I enjoy using PancakeSwap, as every one of you does. However, our purpose is to save as much money for you as we can. If you do small transactions daily, you do want to place limit orders at exact prices to save up some transaction fees. BTW, you’re also protected from being front-run.

And as we’re getting to the end of the interview, let’s talk about the future. What do you see as the main challenge for the future of DeFi? What new features can we expect from you in the upcoming months?
I think it’s now safe to say that we’ve entered the bear market. I don’t exactly know how long it will last, but the market will definitely take time to recover. In any financial market, liquidity is oxygen. I and the iZUMi team always believe in our motto that “liquidity is money, liquidity makes money.” And that’s why we’re building around liquidity service for users and other protocols. Every party in the DeFi industry lives on liquidity, and the bear market is a big challenge to it. We’ll keep perfecting our product and make it a 100% decentralized, transparent DEX with no censorship, and no limitation that everyone has free access to.

In terms of new features or partnerships, yes, we will be partnering with some top-tier protocols on the BNB Chain. They are still to be announced, stay tuned!

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