Building a Strong and Secure Future: Updates on HIPs and Wombat Collaboration

August 31, 2023

Building a Strong and Secure Future: Updates on HIPs and Wombat Collaboration

Just a couple of months back, we put forth 4 Horizon Improvement Proposals (HIPs) to enhance our liquidity pools and make the most of the Ecosystem and Community Fund.

The main goal of these proposals is to increase liquidity, security and simplify our pools for better community engagement.

Last month, we had an informative session with Wombat on Twitter Spaces. It was great to learn about their strategy, ecosystem, and team.

Today, we’re providing further updates driven by community feedback on security at Wombat Exchange. After thorough discussions with Wombat, we’ve incorporated the security-related insights into HIP-8. We’re also making modifications to HIP-8 by introducing the option to use USDC stablecoin for the zUSD liquidity pool, offering an alternative to the sunset BUSD stablecoin.

Additionally, we’ve made revisions to HIP-10, outlining the utilization of Wombex Finance to leverage the zAssets minted in HIP-7 Community Fund and to provide liquidity to the zUSD-USDC and zBNB-BNB liquidity pools on Wombat Exchange.

Through HIP-10, we’re proposing to stake this liquidity via Wombex Finance, the premier yield aggregator built on top of Wombat Finance. This approach using a yield aggregator is anticipated to enhance the revenue generated from the staked liquidity, with the entire sum flowing back into the Community Fund. The resulting tokens WOM and WMX will be added to the community fund and potentially sold in the open market when needed.

This strategy serves the dual purpose of generating extra revenue and contributing to the sustainability of the community fund by offsetting expenses and facilitating the protocol’s ongoing growth. Looking into the future, we will be monitoring the success of this strategy and continue to explore our options on how to maximize the capital efficiency of the usage of the community fund.

Minor refinements to HIP-7 and HIP-9 are aligned with the changes introduced in HIP-8 and HIP-10.

We appreciate your engagement and feedback on HIPs 7–10. A big shout-out to the Wombat team for their transparent responses to community queries.

As we move forward, we believe those changes are going to serve as a solid liquidity foundation for the upcoming Perpetual Futures exchange and a path to more sustainable growth of the protocol.

With that being said, we want to share the plan for executing HIP 7–10.

Stage one:

Sep 1st-Sep 12th, passing Wombat’s government to add weekly bribes in Wombat’s voting gauge.

Pool 1: zUSD Pool (zUSD-USDC)

Bribe incentive: 45,000 HZN per week (180,000 per month)

Pool 2: zBNB Pool (zBNB-BNB)

Bribe Incentive: 30,000 HZN per week (120,000 HZN per month)

In order to add the Add bribes to Wombat’s Voting Gauge, we will propose a temperature check for the List of the zUSD Pool (zUSD-USDC) Pool and zBNB Pool (zBNB-BNB) on Wombat’s Voting Gauge in Wombat’s governance forum on Sep 1st.

Once the temperature check passes (gain at least 15 likes), we will submit a consensus for both pools to start the Snapshot voting which will last for seven days.

For the Consensus Check to be successful, it must receive over 50% yes-votes and an 18M veWOM yes-vote quorum on both chains.

Stage two:

On Sep 13th zUSD-USDC and zBNB-BNB pool goes live

Sunset Pancake zUSD-BUSD Pool’s weekly incentive if the weekly bribes for Wombat’s voting gauge passed.

Both pools live on Wombat Exchange:

Pool 1: zUSD Pool (zUSD-USDC)

Pool 2: zBNB Pool (zBNB-BNB)

Furthermore:
Utilize the Community Fund for Additional Liquidity and Use zAssets from Community Fund staking to provide liquidity on Wombat Exchange via Wombex Finance will be executed after the pool is live on Wombat and Wombex(If the community agrees to utilize Wombex).

We will keep everyone posted once we are planning to execute it.

We’re stepping into an exciting new chapter. With a successful audit done and an exciting partnership with Wombat on the way, we’re getting ready to make the best choices for a strong and secure future.

Please reach out to our community if you have any questions.

Horizon Protocol is a DeFi platform that facilitates the on-chain trading of synthetic assets that represent the real economy. Horizon Protocol seeks to provide exposure to real-world assets risk/return profiles via smart contracts on the blockchain.

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