iZiSwap

Market Making

iZiSwap is a decentralized exchange on BNB Chain that innovated the Discretized-Liquidity-AMM (DLAMM) model to provide users with efficient on-chain liquidity.

Risk Rating
Average
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
iZiSwap is a new concentrated liquidity AMM design that enables liquidity to be precisely distributed on any fixed price rather than a price range in order to maximize capital efficiency.
What we like less
Centralization risk as the team has not provided details if privileged roles have moved to a multisig setup.
What it means for you
Offers you a decentralized exchange that enjoys the advantages of minimal price slippage due to the concentrated liquidity as well as the flexibility of limit orders.
Information
Exploit/Hacks
None
Info
  • Website
  • Token: IZI
  • Tags: Market Making
Key Metrics
  • TVL: $33M (Rank #103)
  • TVL Ranking by Market Making: #0
  • Blockchain: Merlin, Mantle, Blast, Scroll, zkSync Era, Linea, Manta, Binance, ZetaChain, zkLink, Base, Kroma, Zkfair, Ultron, Mode, Arbitrum, OntologyEVM, Polygon, Aurora, Meter, Ethereum, Cronos, EthereumClassic
  • Chain TVL
    • Merlin: $26.22M
    • Mantle: $8.57M
    • Blast: $7.37M
    • Scroll: $4.58M
    • zkSync Era: $4.29M
    • Others: $8.18M
Risk Assessment
Average
Protocol Code Quality
  • Code reviewed by several experienced auditors including CertiK and BlockSec
  • Anonymous team reduces transparency
  • No documented protocol hacks since launch
Protocol Maturity
  • Latest protocol version launched in 2022; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 10% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • This protocol is susceptible to risks related to decentralized exchanges (DEXs), such as impermanent loss
Things to know about iZiSwap

How iZiSwap works

iZiSwap is an innovative discretized liquidity-AMM (DLAMM) model that provides efficient on-chain liquidity. The DLAMM model uses a new discrete concentrated liquidity algorithm with similar characteristics to Uniswap V3, but enables liquidity to be precisely distributed on any fixed price rather than a price range. This allows iZiSwap to be more flexible in terms of liquidity and to support more advanced trading mechanisms like limit orders. iZiSwap uses a synthetic continuous constant product with a discretized constant sum formula (x+y=k) where prices are discretized. This results in two major improvements versus Uniswap V3: reduced slippage and more accurate liquidity provision within a price range.

How iZiSwap makes money

iZiSwap charges several different fee tiers including 0.01%, 0.04%, 0.2%, and 1%. The 0.01% and 0.04% are best suited for stablecoin pairs, the 0.2% is suitable for mainstream pairs, and the 1% is mostly used for emerging tokens and/or highly volatile trading pairs. Of these pool fee tiers, 50% is distributed to the LPs, 25% is used to buyback IZI, and 25% is used to buyback iUSD.

How you make money on iZiSwap

You can deposit liquidity on iZiSwap to start earning trading fees. Choose the token pairs, the swap fee rate, and the price range to add liquidity.