Introducing HIPs

Introducing HIPs

As you may know, one of the goals of Horizon Protocol is to become a fully functioning DAO. We strongly believe that Community Governance is the future. For this reason, we would like to introduce to you HIPs (Horizon Improvement Proposals). Through HIP, the community will be able to make changes to Horizon Protocol.

To get everyone used to this, we will share two proposals.

  • There will be a 1 week period to discuss and provide feedback
  • HIPs will be revised and implemented based on your feedback.

HIP-1: Create a zBNB-BNB LP:

  • Deploy a new staking pool on Ellipsis Finance.
  • 30,000 HZN weekly reward.
  • Adds a new liquidity on-ramp for Horizon Exchange
  • Ellipsis allows for lower slippage and fees.
  • Will make it cheaper and more flexible to on/off-ramp into zAssets.
  • Create new arbitrage opportunities and make it easier to arbitrage existing zAssets on the open market.
  • Helps keep the peg stable.
  • BNB is the most liquid asset on the BNB Chain.
  • BNB has no associated risk bridging from another chain.

HIP-2: Change C-Ratio to 700%:

  • This will increase the total zAsset liquidity by 14%.
  • Lowering C-Ratio incrementally will make changes less volatile and allow the community to see its impact.
  • Despite altcoin market conditions, no user has ever been liquidated.
  • By increasing zAssets, more zUSD liquidity can be supplied to the LP. This will make it easier for new traders to access a more liquid pool without the necessity of staking.
  • By increasing zAsset liquidity, more users can participate in lower IL staking rewards, such as zUSD-BUSD, to boost liquidity in the pool.

You will find both proposals on Horizon Academy.

Let us know what you think!