HIP-19: Temporarily reduce C-Ratio to 350%

August 14, 2024

HIP-19: Temporarily reduce C-Ratio to 350%

HIP-19 proposes to temporarily reduce the Target C-Ratio to 350%. This adjustment aims to relieve pressure on stakers, making it easier to claim weekly rewards without burning zUSD or self-liquidating.

Key points:
- 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 is designed to give stakers more flexibility while maintaining liquidity in the zUSD and zBNB markets.

Risks:
With the lower C-Ratio, hitting the 160% liquidation ratio becomes easier, especially if you’re using an aggressive strategy. Keep a close eye on your C-Rato to stay on top of things. If you’re looking to play it safer, you can always go with a Moderate or Conservative strategy to help manage any risks.

Note:
This is a temporary measure. We’ll closely monitor its impact and make further adjustments if necessary.

Read the full HIP by visit Horizon Academy.

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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