October 8, 2023

Tech Update: Upcoming Testnet V2

We’re excited to share an update alongside our upcoming Testnet V2 smart contract releases. This update focuses on improving the Weekly zUSD fee distribution. The goal is to make this change beneficial for our community of stakers and promote a fairer fee distribution system.

Key Benefits of the Changes:

1. Cross-Chain Compatibility: With this update, all stakers, regardless of the chain they’re participating in, will collect the same amount of weekly rewards. This means that users across different chains will enjoy a consistent and fair distribution of fees. We believe that equalizing rewards across chains promotes a more inclusive and harmonious ecosystem, where everyone shares the rewards more fairly.

2. Inclusive Rewards: Another exciting aspect of this change is that stakers will receive exchange fee rewards through forgiven debt.

zUSD fees earned each reward period automatically get burned, and an equivalent amount of staker’s debt is forgiven. No claiming action or C-Ratio management is required to receive this debt forgiveness. HZN rewards still require to be claimed with a managed C-Ratio. This adjustment ensures that stakers can benefit from exchange fee rewards more consistently, promoting participation and engagement within the Horizon Protocol network.

Next Steps:

Our next step is to make some minor modifications to the testnet UI — weekly rewards page and prepare to release the testnet. There will be an article released on Horizon Academy to explain the details of this change.

Stay tuned for the testnet V2 update! And thank you for being a valued member of the Horizon Protocol community.

P.S. We would like to remind everyone that the new zUSD/USDC and zBNB/BNB pools are now live on Wombat Exchange. The incentive for the PancakeSwap zUSD/BUSD pool has been discontinued. The Pancake pool will remain open until cleared out. We kindly encourage stakers to remove their liquidity from Pancake at their earliest convenience.

Horizon Protocol is a DeFi platform that facilitates the on-chain trading of synthetic assets that represent the real economy. Horizon Protocol seeks to provide exposure to real-world assets risk/return profiles via smart contracts on the blockchain.

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