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izumi Finance launches DAO with quadratic voting

DeFi

invezz.com 17 February 2022 19:12, UTC
  
Reading time: ~2 m

izumi Finance, the innovative protocol that provides programmable liquidity mining on Uniswap V3 (UNI/USD), is launching a DAO with a quadratic voting mechanism based on veNFT, Invezz learned from a press release. The veiZi governance token will make DAO governance possible through quadratic voting on key issues for the community.

veiZi NFT is ERC271-compatible

veiZi NFTs fully represent the governance rights of the protocol, which include returning and boosting staking rewards as well as voting. In most DAOs, members with more tokens have more voting rights. With iZUMi DAO, the number of tokens held within the NFT represents the governance votes.

The outcome of veNFT voting will determine and allocate each cycle’s iZi emissions. Half of the platform’s revenue from staking rewards will be used to buy back iZi, which will be allocated to veiZi NFTs depending on voting power. With staked NFT, veiZi will be used to boost iZUMi i’s farming pool APR by up to 2.5 times.

Any iZUMi wallet address can mint veiZi NFTs by locking iZi tokens for a specific period of time. You can also acquire veiZi through third-party NFT marketplaces.

Unique interest-bearing NFTs

veiZi are interest-bearing NFTs, which makes them the first in this class. Holders can stake them for rewards every month. One NFT per iZUMi can be staked with extensions of both the locked number and the locked period available at all times.

You can also unstake whenever you want after collecting your rewards. You can reduce those farming rewards if you unstake veiZi before claiming the rewards due to the cancelation of boosting. Then, you can then redeem the NFTs and get your locked iZi tokens back after the locking period has passed.

Major benefits to the community

The launch of veiZi has multiple advantages to the community. The interest-bearing feature allows holders to generate rewards every month. It also reduces the circulation of iZi in the secondary market, raising iZi’s value.

It’s also possible to stake veiZi just once, but then use it over and over again to boost farming pools. You can trade veiZi on OpenSea and other mainstream markets, so the risk of losing liquidity in locked iZi does not exist.


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