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.
Forked from Synthetix, Horizon Protocol will leverage the time-tested derivative liquidity protocol and bring interoperability, scalability and a whole new array of tradable, real-world derivative products to the DeFi ecosystem. Our commitment to the Binance ecosystem and native implementation on Binance Smart Chain (BSC) offer users the speed and dependability that is currently lacking on the Ethereum blockchain.
- Horizon Protocol Websiteopen in new window
- Horizon Protocol Litepaperopen in new window
- Horizon Mediumopen in new window
- Official Telegram Channelopen in new window
- Official Telegram Announcements Channelopen in new window
- Twitteropen in new window
- Redditopen in new window
- CoinGeckoopen in new window
- Coin Market Capopen in new window
- Token Contract: 0xc0eff7749b125444953ef89682201fb8c6a917cdopen in new window
Horizon Genesis is the backbone for all the synthetic assets in the Horizon ecosystem. Horizon Genesis maintains the collateralization ratio by offering staking mechanisms for the Horizon Protocol network to stabilize the ecosystem and create synthetic assets. Horizon Genesis is used to create Horizon Protocol's first synthetic asset, the zUSD, which is minted with HZN as collateral.
Below are concepts that are important to understand:
HZN (and where to buy)
HZN is the token for the Horizon Protocol network that supports and underlies the synthetic assets produced on the network.
You can buy HZN via the following exchanges:
Decentralized Exchanges (DEX)
Centralized Exchanges (CEX)
Synthetic assets are derivatives, which are assets that derive its value from another underlying asset. Synthetic assets can be stocks, tokens, indices, NFTs, or other financial products and are produced to mimic the original asset, typically in the form of its price. For example, a synthetic asset of a stock would mimic the price fluctuations of the stock, while a synthetic asset of a token would mimic the price fluctuations of the token. Since synthetic assets are also tokenized, they are easily accessible and allow for an additional layer of DeFi products that can be applied to the asset, possibly giving yield-generating opportunities to investors on assets that may not have had these options naturally.
Synthetic Assets produced on Horizon Protocol are called zAssets. For example, a Gamestop (GME) stock would be called zGME.
zUSD is the core zAsset of Horizon Protocol and is a stablecoin pegged to the US Dollar. zUSD is important because the total value of all the synthetic assets (global debt) produced on Horizon Protocol is evaluated and denominated in zUSD.
Horizon Genesis will guarantee that zUSD is valued at $1.00 when being minted or burned. The value of zUSD that exists on the open market could fluctuate in price (based on supply/demand forces), but that would create arbitrage opportunities to profit between the open market and Horizon Genesis.
zUSD will also facilitate the trading of other zAssets, which will be available on the Horizon Exchange (under development).
Horizon Exchange will offer cross-chain crypto derivatives, traditional asset derivatives, as well as new financial products/assets.
Collateralization Ratio (C-Ratio)
All zAssets produced on Horizon Protocol must be collateralized by HZN in order for their values to be maintained. HZN is staked and zUSD is minted at a Collateralization Ratio (C-Ratio) of 800% ($8 worth of HZN to mint $1 zUSD), and this C-Ratio must be maintained in order to collect rewards from the system. The purpose of the C-Ratio is to ensure that the synthetic assets are sufficiently backed during HZN price fluctuations. The 800% target C-Ratio is subject to change based on the community governance.
Staking and Rewards
There are multiple ways to stake on Horizon Genesis and earn rewards. There are two ways to stake: Mint and Earn. Mint is when a user creates zUSD using HZN as collateral and gets rewards according to the amount of debt they hold. This will be the main way to stake and will also receive the majority of the rewards issued in Horizon Protocol. Earn provides different opportunities to earn through liquidity provision and the staking of LP tokens.
Staking rewards are distributed per system rules (these can change as the system evolves) and are provided by the token’s inflationary policy, exchange fees (relevant when the Horizon Exchange becomes available), and any other system incentives (if applicable).
Debt is an important concept for understanding reward distribution when minting on Horizon Genesis. When a user mints zUSD, they are borrowing zUSD with HZN as collateral, and they will have to return (burn) their zUSD in order to reclaim their HZN. That means that they are now in debt (interest-free) to the amount of the zUSD that they have minted. User rewards are calculated weekly by the ratio of the user's debt relative to the global debt in the Horizon Protocol network. Learn more about rewards.
Staking on Horizon Genesis
When a user stakes HZN to mint on Horizon Genesis, the stake is pooled with all other staked HZN and that pool collateralizes all zAssets on the entire Horizon Protocol network. As an investor, you can mint zUSD, which means you are incurring an interest-free debt to the network. The debt must be adequately collateralized and your C-Ratio always maintained in order to be eligible for rewards. For savvy investors, this debt can be leveraged to earn yield through staking as an LP or trading on the Horizon Exchange.
Anyone that holds HZN tokens can stake on the network, with no minimum requirements. However, you must also have BNB tokens to pay for network gas.
Below are instructions on how to get started:
1. Set up Wallet
To start, the user will need a wallet. Horizon Genesis operates on the BSC (Binance Smart Chain), so the wallet for the HZN token must be BSC compatible. Horizon Genesis supports the following wallets:
- Binance Chain Wallet extension (FireFox, Chrome, Edge)
Note that Hardware wallets (Ledger, Trezor) are not supported natively by Horizon Protocol, however, are available through MetaMask and the Binance Chain Wallet browser extension.
2. Acquire Tokens
Acquire HZN tokens for staking and BNB tokens to pay for network gas. Click here to see where you can buy HZN tokens.
3. Access Horizon Genesis
Visit the Horizon Genesis Websiteopen in new window and connect your wallet by clicking on the top right corner and selecting your preferred wallet.
4. Begin Staking by Minting
After connecting your wallet, you are ready to stake. Minting means you will be staking your HZN to create zUSD.
The maximum amount of zUSD you can mint is at a 800% C-Ratio, which means that for every $800 USD worth of HZN, you will be able to mint $100 zUSD.
To begin minting, you can either:
- Select a Preset Strategy
The user can choose how much they want to Mint by selecting a preset strategy. Aggressive will populate the maximum amount of zUSD that is mintable, given the user's HZN holdings. Neutral and Conservative helps create a bit of a buffer so zUSD does not need to be as frequently burnt or HZN added to maintain the 800% C-Ratio. Learn more about strategies.
- Select Amount of HZN to Stake
The user can type in how much HZN they want to stake or click Mint Max, which will collateralize at 800%, the same as using the Aggressive strategy.
- Select Amount of zUSD to Mint
The user can type in exactly how much zUSD they want to mint.
5. Collect Rewards
Once a week, on Fridays, rewards will be available to be collected. Go to the Claim tab and click Claim. A notification will display on the Claim tab if you have rewards available to claim. The reward can only be collected if the user's C-Ratio is 800% or more. If it's less, the user will need to go to the Burn tab to burn some zUSD or add some more HZN to your wallet. There is a few percent buffer under 800% where you can still claim your rewards.
Managing C-Ratio and Rewards Summary
- Users must maintain a C-Ratio of above 800% in order to be eligible for rewards. (If you are within a few percent of 800%, i.e. 795% or above, you’ll be able to claim.) If not, you'll have to buy more HZN or burn zUSD to restore your C-Ratio. The Target C-Ratio (800%) is subject to change based on community governance decisions.
- Rewards are calculated and made available once per week on Fridays.
- Use the Horizon Genesis Websiteopen in new window to navigate to the Claim section.
- Press Claim Now to collect both your zUSD and HZN weekly rewards.
- Rewards will be available to be claimed for 7 days. Unclaimed rewards will be forfeited. More on this here.
- Claimed HZN rewards are escrowed for 1 year. You won't be able to transfer or sell them. You’ll be able to re-stake them or use them to manage your C-Ratio, however.
- Users will be at risk of liquidation if their C-Ratio goes below 200%. More on this here.
Horizon Genesis Interface
The Wallet status can be seen on the Mint, Burn, and Claim pages.
- Current C-Ratio: If the user has staked, their current C-Ratio is based on the following formula: HZN Balance * HZN Price / Debt
- HZN Staking APY: Current APY for staking.
- HZN Price: The current price of HZN on the market.
- HZN Balance: The total amount of HZN in wallet (Staked + transferable + Escrowed).
- zUSD Balance: The amount of zUSD held in wallet.
- Debt: The amount of debt held (currently equivalent to the amount of zUSD minted).
- Staked: The amount of HZN that is staked to maintain the user's current debt. Staked HZN, while still shows up in your wallet balance, cannot be transferred or utilized. The amount of staked HZN is dynamic and will fluctuate based on the current price of HZN and the amount of debt the user possesses. If you have some transferable or escrowed HZN in your wallet (see below), Horizon Genesis will automatically migrate some of this HZN to become staked in the event of a price drop in order to always maintain an 800% staked-to-debt ratio. Horizon Genesis only ever requires 800% collateralization for the debt that you have, so any HZN that isn't needed (i.e. if the price moves up) to be staked will be released back to the user as transferable or escrowed HZN automatically.
- transferable: The amount of HZN that is not currently staked to back your debt, but is available to be staked. transferable HZN is also available to be transferred to other wallets or sold on the market. Having some transferable HZN means you are above 800% C-Ratio and can act as a buffer for Horizon Genesis to stake with if the HZN price drops.
- Escrowed: The amount of HZN locked in escrow. HZN rewards claimed each week are locked in escrow for 1 year from the moment they are claimed. Escrowed HZN cannot be transferred or sold on the market, but can still be utilized to manage your C-Ratio and be compounded by staking and minting more zUSD. Escrowed HZN will be the first to unstake (and returned to your escrowed balance) when your C-Ratio goes above 800%, followed by transferable HZN as second unstaking priority
- Next Reward Claim: The time until the next reward (and if you haven't claimed yet this week, the time until your claim this week expires).
Mint zUSD by staking your HZN. This gives you a Collateralization Ratio (C-Ratio) and a debt, allowing you to earn weekly staking rewards.
- Preset Strategies: One click to select how much to mint; either 1200%, 1000%, or 800% C-Ratio.
- STAKE HZN: Select the amount of HZN to be staked (will display and update relative to MINT zUSD).
- MINT zUSD: Select the amount of zUSD to be minted (will display and update relative to STAKE HZN).
- C-Ratio The current C-Ratio (and the C-Ratio after minting).
- Debt The amount of debt the user currently has (and the amount of debt the user has after minting).
- Staked The amount of HZN that is currently staked (and the amount of HZN staked after minting).
- transferable The amount of HZN that is currently not staked (and the amount of HZN not staked after minting).
- MINT NOW Click to Mint according to the STAKE HZN <-> MINT zUSD details.
Burn zUSD to unlock your staked HZN. This increases your Collateralization Ratio and reduces your debt, allowing you to transfer your non-escrowed HZN.
The user does not lose any HZN when burning. Burning zUSD while under 800% C-Ratio will just reduce the amount of debt the user has without unstaking any HZN, but burning zUSD if the user is above 800% will unstake HZN at a 8:1 (800%) proportional rate (in USD terms) to how much zUSD the user burns.
There is a 24 hour 'Burn Lock' after a user mints zUSD, where the user cannot burn any zUSD. This is to prevent oracle front-running attacks on the network.
- Preset Strategies: One click to select how much to burn; either 1200%, 1000%, or 800% C-Ratio.
- BURN zUSD: Select the amount of zUSD to be burned (will display and update relative to UNSTAKE HZN).
- UNSTAKE HZN: Select the amount of HZN to unstake (will display and update relative to BURN zUSD). HZN is only unstaked when going above 800% C-Ratio.
- C-Ratio: The current C-Ratio (and the C-Ratio after burning).
- Debt The amount of debt the user currently has (and the amount of debt the user has after burning).
- Staked The amount of HZN that is currently staked (and the amount of HZN staked after burning).
- transferable The amount of HZN that is currently not staked (and the amount of HZN not staked after burning).
- BURN NOW Click to Burn according to the BURN zUSD <-> UNSTAKE HZN details.
Claim rewards from staking HZN and minting zUSD. Claimed rewards are vested for 12 months from the claim date, but can be used to manage the current C-Ratio or staked again to compound rewards during that time.
- Staking Rewards: Rewards available to be claimed via staking.
- Exchange Rewards: Rewards available to be claimed via the Exchange (not available yet).
- Next Reward Claim Period: Time until next reward is available.
- Claim Period Ends: Time until this reward expires and cannot be claimed anymore.
- Total Rewards: Total rewards available to be claimed (Staking + Exchange Rewards).
Multiple pools where you can stake something other than HZN to earn additional HZN.
- STAKE PHB: Stake PHB to earn HZN. This pool will end on April 15th, 2022.
- STAKE HZN-BNB LP: Stake HZN-BNB LP (provide liquidity on PancakeSwap) to earn HZN.
- STAKE ZUSD-BUSD LP: Stake ZUSD-BUSD LP (provide liquidity on PancakeSwap) to earn HZN.
In addition to HZN staking rewards, Horizon Genesis offers incentives for liquidity provision on important assets that sustain the ecosystem. All rewards are supplied by Horizon Protocol's monetary policy outlined hereopen in new window with exception to emissions from the initial token distribution. All rewards are subject to change based on project/market progression and community governance.
Purpose: To facilitate a decentralized on-ramp for the HZN token via PancakeSwap, so users can buy and sell HZN on the open market.
Staked Token: HZN-BNB LPopen in new window
144,230 HZN per week
Duration: April 16th, 2021 - Ongoing
zUSD-BUSD Stablecoin Pool
Purpose: To facilitate a decentralized on-ramp for the zUSD token via PancakeSwap, so users can buy and sell zUSD on the open market.
Staked Token: zUSD-BUSD LPopen in new window
45,000 HZN per week
Duration: July 30th, 2021 - Ongoing
Purpose: To emit the initial fair launch token distribution as outlined hereopen in new window. These rewards come from the initial token distribution and not from the Horizon Protocol monetary policy.
Staked Token: PHBopen in new window
113636.3636 HZN per week
Duration: April 16th, 2021 - April 15th, 2022
Risks of Staking
Staking on Horizon Protocol is not risk free. Below are considerations and strategies to reduce the amount of risk you face.
HZN Price Fluctuations and your C-Ratio
C-Ratio needs to be maintained to collect rewards. Your HZN is in constant limbo between being 'Staked' or 'transferable'.
There are two ways in which C-Ratio can change:
- If the market price of HZN increases, the HZN you need to collateralize your position will reduce and your current C-Ratio will increase. Horizon Genesis will automatically release the amount of staked HZN you have to become Transferable HZN (or Escrowed HZN if you have staked your rewards) in order to always maintain a 800% ratio based on your current debt. You have the option to re-stake the extra available HZN.
- If the market price of HZN decreases, your C-Ratio will decrease. If you have Transferable or Escrowed HZN available, Horizon Genesis will automatically migrate those balances to become Staked HZN in order to always maintain the 800% collateralization ratio.
There are two ways to maintain your C-ratio:
- Burn some zUSD. This pays back some or all of your debt and will increase your C-Ratio.
- Stake more HZN. This provides more collateral and will increase your C-Ratio. If your current C-Ratio is under 800%, just adding HZN to your wallet will automatically stake your HZN (up to 800%).
Claims are available until the next reward claim period starts (7 days). Make sure to collect your claims before they expire. Rewards that are not claimed during the week are no longer available to the user and are distributed to the following week's reward pool for everybody to earn.
If your C-Ratio falls below 200% you will be flagged for liquidation. Once you are flagged for liquidation, you have 3 days to restore your C-Ratio back to 800% and remove the liquidation flag, otherwise, you can be liquidated. Once you are back to a C-Ratio of 800%, you can execute the transaction to clear your liquidation flag. Please note that if you restore your C-ratio back to 800%, but fail to remove the liquidation flag, your account will still be vulnerable to liquidation if you ever go under 800%. If your account does get liquidated, this flag is automatically removed without the user needing to clear it. To learn more about how liquidation works under the hood, please look to the advanced concepts
Please check the strategy section for more details on how to approach staking HZN and the best approach that fits you.
Your C-Ratio fluctuates based on 2 things:
- The price changes of HZN
- The price change of any of the synthetic assets that users trade on Horizon Exchange
The total value of all synthetic assets owned by users is what constitutes the global debt pool and is denominated in zUSD. The global debt will increase if traders are profitable (i.e. synthetic asset values increase) and decrease if they are unprofitable (i.e. synthetic asset values decrease).
As of Horizon Genesis, the only synthetic asset is zUSD, therefore, the only variable everyone faces in the system is the movement of HZN prices. E.g. I mint $100 of zUSD with $800 of HZN at a 800% collateralization ratio. HZN price drops 50% - my C-Ratio is now 400%. I have to burn $50 of zUSD in order to repay my debt to the system (Or stake an extra $400 HZN) and I can withdraw my initial HZN stake, which is now down 50% due to price change. There is no extra loss I face at this point in time.
In the future when a range of other synthetic assets are introduced to the system, you will need to understand that your debt obligation to the system is proportionally based, meaning the system tracks the percentage of your debt relative to the global debt. Because of this, when the prices of the assets in the global debt portfolio change, so does your debt obligation. If you are 1% of the global debt with $1000 in debt, and the average price of all assets in the global portfolio increases by 10% (which also means the global debt is increased by 10%), then your debt obligation will also increase and become $1100. If the synthetic assets you hold do not also increase by 10%, then you will incur a loss (assuming the global debt doesn't shrink back later).
Lets take an example:
- John and Adam both mint $100k zUSD. The total network debt is $200k, with John and Adam responsible for 50%.
- John buys zBNB with his $100k and Adam holds zUSD.
- In this example, BNB increases by 50% increasing John's holdings to $150k. This price fluctuation increases the total debt to $250k.
- John and Adam are still responsible for 50% of the total debt each. This means John and Adam both owe $125k. When John's zBNB is taken into consideration, he has profited $25k. Even though Adam still has the same zUSD position size of $100k - the debt he owes increased by 25% resulting in a $25k loss.
To mitigate this risk, you can either try to mirror the global portfolio, or you can hedge your position by holding some inverse assets (synthetic assets that directly short the market) to offset the volatility in both directions (long and short).
It is fundamental to understand that when other zAssets join zUSD in the synthetic asset lineup that if you were to merely stake HZN as collateral and just hold your minted zUSD, you are effectively shorting the global portfolio if that portfolio consisted of appreciating synthetic assets.
How are Horizon Genesis rewards calculated?
There are two components to rewards: HZN and zUSD.
HZN rewards are determined by the Horizon Protocol inflation policyopen in new window. This started with the launch of Horizon Genesis and supplies all the rewards for Horizon Genesis as well as the LP staking pool rewards in Earn. As of August 2021, 87% of the rewards are going to HZN stakers who mint zUSD in Horizon Genesis. As a HZN staker, your percentage of the global debt will determine your percentage of rewards each week. If you hold 1% of the global debt, you will receive 1% of all the rewards. Rewards and your percentage of the global debt are calculated at a snapshot of the network taken every Friday around 5:00 UTC.
zUSD transaction fee rewards are also accrued by HZN stakers when the Horizon Exchange goes live. Each transaction on the Horizon Exchange will incur a fee (0.15-0.3%) and the sum of all the fees are distributed to HZN stakers each week proportionally to each individual stakers percentage of the global debt (same as HZN rewards).
Why is liquidation necessary and how does it work?
Liquidation is a critical function to the health of the collateralization of synthetic assets on Horizon Protocol. Liquidation ensures that there will still be sufficient collateral to back synthetic assets in the event of a serious price drop (-90%) in HZN. It creates an incentive for stakers to maintain a healthy C-Ratio as well an incentive for liquidators to liquidate these accounts for a profit. This 2-sided approach ensures that the global network C-Ratio is maintained at a healthy level.
Once a user is flagged for liquidation and they don't restore their C-ratio and clear the flag, they will appear on a list of accounts available to be liquidated (viewable on the network stats pageopen in new window soon along with the amount of zUSD needed to cover their position back to an 800% C-Ratio). From here, a liquidator with sufficient zUSD can liquidate these accounts and claim back HZN with a 10% bonus. Let's take an example:
Consider the following conditions:
- Target C-Ratio: 800%
- Liquidation C-ratio: 200%
- Liquidation penalty: 10%
- Liquidation delay: 3 days
- HZN value: $1
John has 100 HZN staked and a C-Ratio of 200%, which means he has 50 zUSD of debt.
John fails to restore his C-Ratio back to 800% and after 3 days his account becomes available to be liquidated.
To calculate how much zUSD will restore John's C-Ratio, this formula can be used:
Z = (t * D - V) / (t - (1 + P)
Z = zUSD debt required to restore John's C-Ratio t = target C-Ratio (i.e. 8) D = debt balance (i.e. 50) V = value of staked HZN (i.e. 100) P = liquidation penalty (i.e. 0.1) (8 * 50 - 100) / (8 - (1 + 0.1)) = 43.478260869565217 zUSD.1
Adam can now burn
43.478260869565217zUSD to restore John's C-Ratio to 800%. The amount of HZN he receives is based on this formula:
R = (Z * (1 + P)
R = HZN liquidation reward Z = zUSD debt required to restore John's C-Ratio (i.e. 43.478260869565217) P = liquidation penalty (i.e. 0.1) (43.478260869565217 * (1 + 0.1)) = 47.826086956521739 HZN1
This results in
47.826086956521739of John's HZN going to Adam, leaving John with
52.173913043478261HZN staked. John's debt is also reduced by
43.478260869565217zUSD, leaving him with
6.521739130434783zUSD in debt and a C-Ratio of 800%.
If the user restores their C-Ratio back to 800% within the 3-day grace period, the user may then clear their liquidation flag. This is a manual function that requires the user to update the smart contract with the information that they are no longer flagged, otherwise they will still be flagged and the user can still be liquidated after the 3-day grace period anytime they are below 800%. This smart contract update requires a transaction on the blockchain and the user will need to pay the gas fee. The Horizon Genesis UI will indicate to the user of this status and instruct the user to clear this flag.
With the target C-Ratio and fluctuating prices, there are a variety of approaches to staking HZN based on your risk tolerance. These 3 preset strategies are designed to make it easy to maintain a certain C-Ratio by easily minting or burning zUSD.
Conservative Strategy (Lower Risk)
A conservative strategy aims to stake HZN and mint zUSD at rate 50% higher the target C-Ratio (1200%) in order to remain comfortably within the range of being able to claim rewards. This higher C-Ratio (and lower risk) comes at a cost of less zUSD being minted and therefore less rewards. This strategy is better for users who can't check in to manage their positions as frequently and give themselves are larger buffer against the volatility of HZN. An even more conservative ratio of greater than 1200% can be maintained as well if the user wants to further de-risk their debt position.
Neutral Strategy (Moderate Risk)
A neutral strategy aims to be a middle ground between the conservative and aggressive strategy at 1000% C-Ratio. This strategy increases your risk slightly relative to the conservative strategy but also earns more rewards.
Aggressive Strategy (High Risk)
An aggressive staker stays as close to the target C-Ratio (800%) as possible and mints as much zUSD as possible to maximize rewards. This is high risk due to the fact that if the price of HZN decreases at all from the point where they minted zUSD, the staker cannot claim any rewards. This strategy requires very active management to maintain their C-Ratio in order to collect rewards and prevent liquidation as the buffer zone to liquidation is much lower than the conservative and neutral strategies.
How do I stake my HZN?
To stake HZN you also need to mint zUSD, which is a stablecoin backed by your staked HZN. This zUSD must be paid back in order to reclaim your HZN and is considered as an interest-free debt. Staking HZN requires managing your Collateralization Ratio (C-Ratio) in order to be eligible for rewards and avoid liquidation.
How can I unstake HZN?
You must burn zUSD in order to unstake HZN. Burning zUSD will reduce your debt which also reduces the amount of HZN required to back that debt.
- Any zUSD burned while under an 800% C-Ratio will only reduce your debt and increase your C-Ratio, but will not unstake any HZN.
- Any zUSD burned while over an 800% C-Ratio will reduce your debt AND unstake HZN at an 800% ratio. Reducing your debt to 0 would unstake all of your HZN. Unstaked HZN would become 'transferable' HZN, which is freely usable HZN.
Why can I still see my HZN in my wallet even though I have staked it?
When staking HZN in Horizon Genesis, your HZN will never actually leave your wallet. Horizon Genesis will automatically flag your HZN as 'staked' rendering it unusable until you unstake your position. HZN that isn't staked will be considered 'transferable' and freely usable to transfer or sell.
Why is my HZN staked amount constantly changing?
Horizon Protocol has a dynamic staking mechanism that automatically adjusts the amount of HZN staked based on the current price of HZN in order to always maintain an 800% backing of your current debt. Transferable and escrowed HZN are dynamically used to maintain an 800% C-Ratio as the price of HZN fluctuates.
Let’s take an example:
You mint 100 zUSD with 800 HZN (1 HZN = $1) at 800% C-Ratio, your staked HZN balance would be 800 and your transferable HZN balance would be 0 (assuming you staked all of your HZN).
The price of HZN goes up to $1.5, now you would only need 533.33 HZN to back your 100 zUSD. Horizon Genesis would automatically release 266.67 HZN from being staked and it would become transferable HZN. This transferable HZN could then be freely used to mint more zUSD, transferred to another wallet, or sold on an exchange.
The price of HZN drops to $0.5, then you will need 1,600 HZN (1600 x $0.5 = $800) to back your 100 zUSD debt position. Horizon Genesis will automatically migrate any transferable or escrowed HZN in your wallet to become staked HZN until the necessary 1600 HZN backing is met. If you don’t have any transferable HZN, then your C-Ratio will fall below the 800% target C-Ratio and you will no longer be able to claim rewards.
Why is there a timer blocking me from burning my zUSD?
There is a 24 hour period between minting and burning zUSD. This is necessary to prevent oracle front-running attacks.
When I stake HZN, and there is the possibility of liquidation, to what degree is my position "leveraged"? I still have my balance of HZN. The threat of liquidation implies leveraged, but this scenario does not seem to entail it?
Liquidation in Horizon Protocol is not the same as liquidation of a leveraged or margin position. Your position in Horizon Protocol is not leveraged, you are actually over-collateralizing a debt position at an 800% ratio to back the creation of synthetic assets. Liquidation occurs when you lack sufficient backing of those synthetic assets. Please refer to the liquidation section.
What is a C-Ratio?
Collateralization Ratio or C-Ratio is the ratio between your collateral and your debt. Horizon Protocol currently has a target C-Ratio of 800% meaning you need $8 worth of HZN staked to mint $1 zUSD to have a $1 debt. The purpose of the C-Ratio is to ensure that the synthetics produced by Horizon Protocol are sufficiently backed during price fluctuations.
What happens if my C-Ratio drops below 800%?
If your C-Ratio drops below 800% you will not be able to claim rewards. You will continue to gain rewards but will need to restore your C-Ratio to 800% by burning zUSD or adding more HZN in order to claim rewards. If you do not claim your rewards after a week, your rewards will be forfeited and redistributed to the following week's reward pool.
How do I know how much zUSD to burn in order to rebalance my C-Ratio to 800%?
Horizon Genesis has preset strategies to help you manage your C-Ratio. Simply clicking the “Aggressive - 800%” preset strategy will automatically calculate how much zUSD you need to burn to return to 800%. You may also manually input how much zUSD you want to burn if you want to maintain a different C-Ratio.
When exactly am I in the liquidation zone?
If your C-Ratio goes under 200% - you will be automatically flagged for liquidation. Horizon Genesis has a 3-day grace period to allow you to restore your C-Ratio and clear your liquidation flag before your account becomes available for liquidation. You will need to restore your C-Ratio back to 800% before you're able to clear your liquidation flag.
Please note that clearing your liquidation flag requires a blockchain transaction and is NOT automatic.
Learn more about liquidation here.
When I burn zUSD, do I also burn my HZN?
No, you never lose HZN when burning zUSD. If your C-Ratio is under 800%, burning zUSD just reduces your debt and increases your C-Ratio. Once your C-Ratio is above 800% you will begin to unstake your HZN when burning zUSD. Reducing your debt to 0 would unstake all of your HZN. Unstaked HZN will become 'transferable' HZN, which is freely usable HZN.
How come no transferable HZN is showing up when I burn zUSD?
There are 2 reasons this can occur:
You are under 800% C-Ratio, therefore no HZN will actually become unstaked until you burn zUSD while over 800% C-Ratio.
All escrowed HZN you have used to stake must be first unstaked before un-escrowed HZN begins to unstake and become transferable.
How are my rewards calculated for staking HZN in Horizon Genesis?
Your rewards are calculated based on the proportion of your personal debt against the global debt pool. Your proportion of global debt is calculated based on a snapshot of the network taken every Friday around 5:00 UTC.
Your Weekly Rewards = Personal debt/Global debt * Weekly Rewards
How do I maximize rewards?
To maximize rewards you want to hold more debt and mint with all of your HZN (aggressive 800% strategy). Any price drop from the point of minting at 800% will result in you not being able to claim rewards. You have 1 week, until the next week’s reward period starts, to make sure your C-Ratio is at least 800% and claim your rewards or they will be forfeited and returned to the following week’s reward pool for others to earn.
Maximizing rewards is risky and requires more active management. Do not take on risk that you are not comfortable with.
How long do I have to claim my rewards?
You have until the next reward period to claim your rewards (7 days from when rewards are claimable). Unclaimed rewards will be redistributed into next week’s reward pool. You can see how long you have left to claim by checking the bottom right of the screen where you will see a timer until the next reward claim period.
Will I still gain rewards if I don’t claim this week’s rewards?
Yes, you will continue to gain rewards every week based on how much debt you hold. Any rewards you don’t claim each week will be forfeited and returned back to the reward pool for the following week's reward distribution.
When do my rewards stop calculating?
You will gain rewards as long as you have a debt position at the end of each reward period on Horizon Genesis. If you burn all your zUSD, you will no longer gain rewards.
Why is the reward claim period only 1 week?
The reward claim period coincides with the Horizon Protocol monetary policy, which distributes new tokens on a weekly basis. Rewards for the previous week must be claimed before the start of the next reward period or they will be forfeited and redistributed into the next week’s reward pool.
Why can’t there be a setting to auto burn every 3 days, auto claim and auto stake rewards?
Burning, claiming, and staking require transactions on the blockchain that need to be paid for by the user.
How long are my rewards in escrow for?
The vesting period for all claimed rewards is 1 year.
What is transferable HZN?
Transferable HZN is HZN that is available to be used in your wallet. You can transfer it or sell it, or keep it in your wallet to increase your C-Ratio. Having a good transferable HZN balance will help you maintain your debt position if the HZN price drops and you need more HZN to be staked. Horizon Genesis will automatically migrate your transferable HZN to become staked HZN in this event.
What other forms of collateral will be available to use on Horizon Protocol?
We’ll be looking into other forms of collateral such as BNB and other assets, but currently you can only use HZN as collateral.
What is zUSD and how is it backed?
zUSD is a stablecoin that is pegged to the US Dollar and is minted in Horizon Genesis when staking HZN as collateral. More collateral options will be available in the future.
What can I do with zUSD?
Currently, you can trade it on PancakeSwapopen in new window or compound your HZN staking rewards by supplying liquidity to the zUSD/BUSD LP in PancakeSwapopen in new window and staking the LP for rewards in the Horizon Genesis Earnopen in new window tab.
In the future with Horizon Exchange, you will also be able to trade it for an array of synthetic assets representing the crypto and real economy.
Where do zUSDs come from?
zUSDs are always minted (and burned) at a value of $1.00 and are backed by the HZN you ‘stake’ into Horizon Genesis. Currently the only synthetic asset is zUSD, so the total supply of zUSD will also be the value of the global debt. Once Horizon Exchange is released, then the global debt will include many more assets with different values.
How can I see zUSD in my wallet?
Add the zUSD token address:
0xf0186490b18cb74619816cfc7feb51cdbe4ae7b9 to your wallet.
How can I convert my zUSD to BUSD and add liquidity to the zUSD/BUSD pool on PancakeSwap?
zUSD is tradeable on PancakeSwap hereopen in new window.
You can add liquidity for the zUSD-BUSD pool hereopen in new window:
The zUSD/BUSD liquidity pool can be checked hereopen in new window.
zUSD token address:
Can we see any statistics in real-time?
Horizon Dashboard will provide real-time network data and analytics for Horizon Protocol. Expected release is this Q3 2021, please see our updated roadmapopen in new window.
What are the contract addresses?
- Built on the BSC for faster, cheaper, scalable transactions
- More focus on bringing a wider range of synthetic assets that represent the real and crypto worlds
- Building more innovative synthetic assets such as zIndices, zNFTs, leveraged assets and others
- Bringing DeFi to NFTs via Synthetic NFTs
- Cross-chain interoperability: BSC, ETH, Solana, Polygon, Tron, Cosmos, Reef, and more
- Focused on user experience and education
- Community driven
How long will the staking rewards for each pool last for?
|Staking HZN in Horizon Genesis||Indefinite|
|HZN/BNB LP pool||Ongoing|
|zUSD/BUSD LP pool||Ongoing|
|PHB Pool||April 15th, 2022|
|HZN Pool on Horizon Staker||Ended on July 23rd, 2021 and transitioned to Staking HZN in Horizon Genesis.|
What are the tokenomics of HZN?
To understand the tokenomics please refer to our Supply and Inflation Policy articleopen in new window.
What was the initial minted distribution for HZN?
The initial minted supply of HZN tokens is 100,000,000.
- 10% (10,000,000 HZN) will be reserved for the IFO on PancakeSwap.
- 30% (30,000,000 HZN) will be reserved for Liquidity Mining (PHB, HZN, HZN-BNB LP) purposes.
- 60% (60,000,000 HZN) will be reserved for the Ecosystem & Community Fund.
How will the 60M ecosystem funds be used?
The 60M Ecosystem & Community Fund will be used to support the protocol and community via stabilization of synthetic asset collateralization, market making for synthetic assets, protocol grants and blockchain fees, bounties, partnerships, marketing, and other community incentives. None of these funds are going to the team, advisors, or investors and are not intended to ever be completely circulating in the market. This fund is the treasury of Horizon Protocol itself and is for the benefit and long term sustainability of the protocol. The intention for this fund is to eventually be completely governed by the community via a DAO.
Will there be a deflation mechanism later?
As our project evolves, we can certainly begin to implement deflationary mechanisms. If you wish to contribute to the discussion around this, please join our Telegram community hereopen in new window.