iZUMi Finance Issues $1.35M Fund on Solv V3 for Market Making

Leading multi-chain, one-stop liquidity-as-a-Service (LaaS) provider and Solv Protocol’s long-term partner iZUMi Finance will issue a stablecoin fund on Solv V3 for 1.35 million USDC to provide liquidity to top DEXes on Arbitrum and BNB Chain.

The fund, under the title “iZUMi Market Making 202301,” is scheduled for March 24 to be issued on Solv V3 Mainnet in senior and junior tranches to cater to LPs with different risk appetites.

Credit Enhancement

• Collateral: iZUMi provides an additional $150,000 of ETH (7% APR) as the senior tranch, which is also added to the same multisig wallet for market making. iZUMi further provides $500,000 worth of iZi tokens (valued at the issuance price) as collateral. If the priority fund suffers losses and the junior fund cannot compensate, the iZi collateral will be liquidated to cover the losses. The liquidation method is to send the value of the loss amount in iZi directly to the priority LP, based on the real-time secondary market price.
• Custody Solution: All funds are managed through a multi-signature wallet controlled by lead investor BingX, Solv, and iZUMi to ensure the dedicated use of funds.

Simultaneously, by using Cobo Argus, permissions that require high-frequency operations will be granted to iZUMi.

（Cobo Argus is a decentralized on-chain solution developed by Cobo based on the Gnosis Safe multi-signature wallet, which allows specific functions of certain smart contracts to be authorized to a single address, meaning that specific operations do not require multiple signatures. All other operations still require multiple signatures. iZUMi has previously issued four tranches of debt worth $12 million on Solv, all managed using this solution.）

• Liquidation mechanism: In the event of extreme market conditions causing the total funds raised to retract by more than 10%, iZUMi will withdraw all liquidity and proceed with liquidation.
• Performance History: Besides developing iZiswap, the next-generation centralized liquidity platform, the iZUMi team is also a leading decentralized market-making group. iZUMi has issued bonds worth 12 million USD on Solv, which have been fully repaid, demonstrating a strong credit record. The team has previously secured debt financing of 30 million USD from institutions such as Cobo, Bybit, and Huobi, and has been responsible for market-making for BitDAO’s Token BIT.

About Portfolio SFT

Upon purchasing fund, users will receive Portfolio SFT as a certificate. The senior tranche of Portfolio SFT is transferable and tradable, allowing users to claim principal and interest through the certificate. The junior tranche of Portfolio SFT is non-transferable and bounded to the purchase address. In the future, users can claim the principal through the Portfolio SFT, while the excess returns will be directly sent to the corresponding holding addresses.

About Solv V3

Solv V3 is an industry-facing decentralized liquidity infrastructure providing a unified, secure, and transparency-driven platform for creating, issuing, managing, and settling on-chain funds.

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