Question 1

What is IZI, and how is it related to iZUMi Finance?

Accepted Answer

IZI (written as iZi in the documentation) is the platform utility token of iZUMi Finance. iZUMi Finance is a multichain DeFi protocol that provides on-chain liquidity services, with products including iZiSwap and LiquidBox; the documentation uses IZI for incentive pool configuration and other tool usage. IZI can also be locked to mint veiZi. veiZi is a veNFT representing iZUMi Finance governance rights, so holding freely disposable IZI and holding locked veiZi with governance weight are different states.

Question 2

What are IZI's token type and total supply?

Accepted Answer

iZUMi documentation defines IZI as an ERC-20 token on Ethereum and lists a total supply of 2 billion tokens. The total supply is the protocol documentation's measure of the total number of tokens; it is not equivalent to the circulating supply at a given time, the amount tradable on a trading platform, or the available balance at a particular address. The documentation also lists contract deployment information for multiple networks. When viewing tokens with the same name across networks, the asset should still be verified according to the network in use and its corresponding contract, rather than treating the total supply description as an immediate balance on any network.

Question 3

What is the veiZi obtained after locking IZI, and how is voting power calculated?

Accepted Answer

veiZi is an ERC-721 governance veNFT minted by locking IZI and is used to represent governance voting power. Any address can choose a lock duration and lock IZI to mint veiZi; the NFT can be transferred or traded, but governance rights change with ownership of that veiZi. Voting power is not based solely on the locked amount. The documentation formula is: veiZi voting power = locked IZI amount × (remaining lock time ÷ 4 years). Remaining lock time is measured in blocks, and 4 years is the maximum duration; when the amounts are the same, a longer remaining lock time produces higher calculated voting power.

Question 4

When can locked IZI be retrieved, and can it be unlocked early?

Accepted Answer

Only after the lock period ends can users redeem veiZi and retrieve the IZI locked in it; the documentation explicitly does not support early unlocking. Owners can extend the lock period to up to 4 years, or add IZI to the same veiZi without changing the existing lock period. Two veiZi can be merged, but the recipient veiZi's remaining lock period must be longer than that of the merged veiZi; the merged locked amount is added to the recipient. Therefore, before an operation, “increasing the amount,” “extending the duration,” and “merging” should be distinguished, as their effects on the lock state are not the same.

Question 5

How is veiZi used in governance and LiquidBox?

Accepted Answer

According to the tokenomics documentation, holders of veiZi can participate in DAO governance and can delegate voting power to another address; the documentation also links IZI issuance allocations for each period to veiZi voting power. Voting power is weighted by both the amount and the remaining lock period, so the same amount of IZI does not necessarily correspond to the same governance weight. The documentation also describes a design in which staking veiZi into LiquidBox can provide a reward-weight boost of up to 2.5 times. This cap does not mean every user receives 2.5 times: its calculation compares the vLiquidity corresponding to the LP NFT with the weight calculated from veiZi voting power, and uses the lower of the two.

Question 6

Which conditions should be distinguished before using IZI or locking it into veiZi?

Accepted Answer

IZI can be used for the incentive pool configuration and other tool usage described in the protocol documentation; locking it converts freely usable IZI into time-bound veiZi, and makes voting power dependent on both the locked amount and remaining duration. Therefore, when evaluating an operation, at least three things should be distinguished: whether tokens are needed for tool or incentive configuration, whether one is willing to accept the condition of being unable to unlock early, and whether governance rights or LiquidBox's boosted weight are needed. The token's market price or any description of historical incentives does not mean these functions necessarily generate returns.

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