HIP-19 Passed: Temporary Reduction of Target C-Ratio to 350%

August 16, 2024

HIP-19 Passed: Temporary Reduction of Target C-Ratio to 350%

We are pleased to announce that HIP-19 has been approved and will be implemented by tomorrow, Friday, August 18th, 2024, before the next Staking reward distribution.

Summary of HIP-19

HIP-19 proposes a temporary reduction of the Target Collateral Ratio (C-Ratio) from 600% to 350%. This adjustment is designed to provide immediate relief to stakers, making it easier to claim weekly rewards without the need to burn zUSD or self-liquidate.

Key Changes:

Target C-Ratio: Lowered from 600% to 350%
Preset Strategies Adjusted:

Conservative: from 1000% to 850%

Neutral: from 800% to 650%

Aggressive: from 600% to 350%

Why This Change?

HZN stakers are integral to the Horizon Protocol Ecosystem, providing collateral to the Global zAsset Portfolio and maintaining liquidity in the zUSD and zBNB markets. This temporary measure aims to alleviate the pressure on stakers, offering them more flexibility while continuing to support the overall health of the ecosystem.

Next Steps

The implementation of HIP-19 will take place before the next Staking reward distribution tomorrow. For full details on HIP-19, please refer to the complete text available in the Horizon Academy.

Thank you to everyone who participated in the discussion and showed their support to this proposal. Your input is crucial in shaping the future of Horizon Protocol.

Stay tuned for further updates!

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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