Izumi Finance, a protocol providing liquidity as a service on Uniswap V3, is joining forces with the HOURAI project to support the upcoming launch of its NFTs through iZUMi’s DeFi derivatives.
With a unique veNFT governance model, whitelisted holders of HOURAI NFTs will be able to trade the original holdings for iZUMi DAO veNFTs (veiZi), with each containing 0.2 ETH worth of locked iZi tokens.
HOURAI, which is an NFT metaverse project backed by the value of DeFi derivatives, assigns a floor price to its non-fungible token. This mechanism supports the NFTs value ahead of the HOURAI NFT drop, scheduled for April 6. The milestone would occur shortly after the launch of iZUMi DAO veNFTs and beginning of staking rewards distributions on March 21.
iZUMi and HOURAI are working towards providing innovative solutions to the NFT ecosystem with their expertise in different areas, including NFT financing, staking, and lending..
iZUMi leverages NFTs to improve DeFi
iZUMi’s governance token, dubbed veiZi, is unique in that it offers interest-bearing NFTs, allowing holders to stake them for rewards every month. Each iZUMi wallet is allowed to stake a single veiZi NFT, with extensions of both the locked period and locked number available at any time. Its decentralized autonomous organization (DAO) is also governed by a quadratic voting mechanism based on veNFT.
Whereas governance votes are represented in most DAOs by the number of tokens held in a wallet, iZUMi’s DAO votes are represented by the number of tokens held within a veiZi NFT.
Commenting on the news, Jimmy Yin, co-founder of iZUMi, said: “We strongly believe that NFTs are the future of crypto, starting from how they’ve made their way into DeFi with Uniswap V3 positions and iZUMi’s layer of liquidity mining on top. By collaborating with HOURAI, we’re finally connecting NFTs to DeFi derivatives, which can create a number of very interesting use cases. Personally I’m also really excited about our veiZi model, which leverages NFTs to create more equitable DAO governance — in which HOURAI holders will also take part.”
“Collaborating with iZUMi is a win-win for both projects. Our NFT holders get additional value that is backed by DeFi derivatives, they get to participate in a new project, while iZUMi gets more DAO members that are incentivized for the long-term,” added Leo Lee,co-founder of HOURAI.