HIP-21 Passed: Stop Incentives to the zBNB — BNB pool on Wombat Exchange

September 13, 2024

HIP-21 Passed: Stop Incentives to the zBNB — BNB pool on Wombat Exchange

We are pleased to announce that HIP-21 has been approved and that incentives for the zBNB — BNB pool on Wombat will cease on September 16th, after the current epoch finishes.

Summary of HIP-21

This HIP proposes to stop incentives to the zBNB — BNB pool. By performing these actions, the weekly HZN emissions will be optimized.

Specification

- Stop incentives to the zBNB — BNB pools on Wombat Exchange
- The zBNB — BNB pools will still be live on Wombat Exchange but without an incentive

Why this change?
The zBNB — BNB pool was originally created with the mission to provide a secondary on/off ramp for traders and an arbitrage opportunity that can reinforce the peg of the zUSD token (HIP-1). Since its migration to Wombat Exchange (HIP-8) , the zBNB — BNB pool had minimal volume showing little interest from traders. In addition, due to the algorithm implemented to balance the single sided pools on Wombat Exchange, it is more difficult to arbitrage zUSD via the zBNB — BNB pool.

Stopping incentives for the zBNB — BNB pool will allow the incentives that are currently used for the zBNB — BNB pool can be redirected towards a more efficient use.

Next Steps

The implementation of HIP-21 will take place after the current reward epoch finishes on Wombat Exchange and incentives cease. For full details on HIP-21, please refer to the complete text available in the Horizon Academy.

Thank you to everyone who participated in the discussion and provided valuable feedback to refine this proposal. Your input is crucial in shaping the future of Horizon Protocol.

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 that provides 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 (i.e. USD, EUR, JPY, etc.), and commodities (i.e. gold, silver, etc.).

With a peer-to-pool model where a counter-party is not required for trading, Horizon Protocol can offer DeFi traders low fees, deep liquidity, and zero slippage when trading borderless synthetic assets. Horizon Protocol sets itself apart with a strong focus on seamless UI/UX and educational content to help the community understand the power of DeFi derivatives.

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