June 22, 2024

HIP-15: Add SOL to Horizon Futures

At Horizon Protocol, we continuously strive to enhance our offerings and provide our community with valuable opportunities. Acknowledging the growing demand for diverse trading options, we are excited to introduce our latest improvement proposal: the addition of SOL (Solana) to our Futures exchange.

With SOL currently ranking as the fourth-largest synthetic asset (zSOL) by market capitalization on our Spot exchange, it naturally aligns as the next Futures asset choice based on community feedback and trader interest.

We invite you to share your preferences for future asset additions by connecting with us on X (Twitter), Telegram, or Discord.

Read the full HIP below or visit Horizon Academy.

Type: Horizon Improvement Proposal
Date: June 22th, 2024
Status: First Draft

Add SOL market to Horizon Futures to expand trading options and incentivize more activity on the platform.

Summary

This HIP proposes to add Solana (SOL) to the Horizon Futures platform to increase the options available to traders and boost trading volume. By introducing SOL to the Futures market, we aim to enhance the platform’s appeal and provide traders with more opportunities to diversify their trading strategies.

Specification

Add Solana (SOL) market on Horizon Futures and set the system parameters as below:

makerFeeOffchainDelayedOrder: 0.00015,
takerFeeOffchainDelayedOrder: 0.0006,
offchainDelayedOrderMinAge: 1,
offchainDelayedOrderMaxAge: 30,
maxLeverage: 27.5,
maxMarketValue: 14800,
maxFundingVelocity: 36,
skewScale: 2100000,
offchainPriceDivergence: 0.10,
liquidationPremiumMultiplier: 1.5625,
liquidationBufferRatio: 0.0075,
maxPD: 0.001602,
maxLiquidationDelta: 0.000801

Motivation

The primary motivation behind this proposal is to expand the range of assets available for trading on Horizon Futures, thereby providing a more comprehensive futures exchange. By offering an attractive and diverse set of markets, we aim to attract more traders to the platform, increase trading activity, and enhance overall market liquidity.

Given that zSOL, the synthetic equivalent of SOL on Horizon Protocol, ranks fourth by market cap among zAssets, it’s the optimal choice for addition as the next Futures asset based on trader interest.

Considerations

Global Debt Pool Impact: Adding new assets to Horizon Futures will introduce increased volatility and potentially impact the global debt pool. Therefore, assets should be added gradually to ensure the platform’s stability and manage risk effectively.

Post-Implementation Evaluation

Upon the addition of SOL to Horizon Futures, an evaluation will be conducted to assess the market’s performance and impact. Key metrics such as trading volume, user activity, and market stability will be analyzed to inform future decisions and strategy adjustments. The aim is to continue to add more markets to Horizon Futures while maintaining an active risk management strategy.

Feedback & Questions

If you have any suggestions, concerns, or inquiries regarding this proposal, please don’t hesitate to reach out. Your feedback is valuable in ensuring the success and continuous improvement of Horizon Futures.

Horizon Protocol is a decentralized derivatives trading and liquidity protocol providing decentralized access to the real-world economy through synthetic assets. Through Horizon Protocol, users can access swaps and perpetual futures of RWA (real-world assets), including fiat currencies (i.e., USD, EUR, JPY), and commodities (i.e., gold, silver).

By leveraging a peer-to-pool model, Horizon Protocol offers DeFi traders low fees, deep liquidity, and zero slippage when trading borderless synthetic assets. Our focus on seamless UI/UX and educational content empowers our community to harness the full potential of DeFi derivatives.

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