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Understanding Staking in Horizon Genesis

HorizonProtocol.com. Learn strategies of staking in Horizon Protocol to earn more HZN; additionally, perform a critical network function and be rewarded for the overall network growth.<br><br>Synthetic Assets Meets the Real World.<br>Buy HZN. Join Now HorizonProtocol.com.

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Understanding Staking in Horizon Genesis

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  1. Understanding Staking in Horizon Genesis HorizonProtocol.com

  2. Horizon Protocol is the foremost DeFi innovation facilitating trading in synthetic assets. With a focus on assets with real-world value, the platform aims to deliver a holistic exposure to the trading opportunities while ensuring good returns on investment. Horizon Protocol also leverages the advantages of derivative liquidity from Synthetix and adds scalability and interoperability to the platform. The platform stands apart from others by managing portfolios using smart contracts. Horizon Protocol was forked from Synthetix, and it runs on the Binance Smart Chain, which amplifies the platform’s efficiency. • • • HorizonProtocol.com

  3. Staking on Horizon Protocol One must first understand Horizon Token (HZN) to appreciate staking on Horizon Genesis entirely. The community activities revolve around the native token HZN, used for rewards, incentives, and other monetary activities. HZN serves as the foundation for DAO-based decisions that govern the entire Horizon Protocol and serves as the collateral for synthetic assets (zAssets) trading. • • HorizonProtocol.com

  4. Staking mechanism on Horizon Protocol The liquidity pool of Horizon Protocol is provided by the community members who stake their HZN tokens for incentives. The zUSD issuance collateralization is handled as per the collateralization ratio agreed through community governance. • The C-Ratio is currently at 800% so should you stake $8 worth of HZN, you would receive $1 of zUSD and an equivalent $1 debt in the system. This debt needs to be repaid by burning zUSD to unstake HZN and exit the system. The rewards from the staking activities originate from the underlying inflationary policy of the protocol. • Additionally, the transaction fees incurred in Horizon Exchange are set apart for reward distribution to stakers in proportion to their contribution. • HorizonProtocol.com

  5. Understanding C-Ratio and Using it to Your Advantage The C-ratio or Collateralization Ratio refers to the ratio of your HZN staked against your personal debt in the protocol’s pool. Think of it as your participation ratio in Horizon Protocol, or more straightforward terms, your standing in the community. • HorizonProtocol.com

  6. Now, staking rewards are proportional to your personal debt Horizon Protocol, which means you can collect rewards in proportion to your contribution, activity, and HZN holdings. • Remember, if the C-ratio of the participant is below the Target Collateralization Ratio (presently at 800% Collateral), they will be barred from collecting staking rewards. It is a fail-safe mechanism. • HorizonProtocol.com

  7. A good C-ratio can be maintained through two routes: • • Burning zUSD Buying more HZN Only when the C-ratio is above the Target Collateralization Ratio will the participant claim their staking rewards. Unlike other platforms, you cannot employ the ‘stake and forget’ theory. The participant must maintain constant vigil to their C-ratio to fully exploit Horizon’s advantages. HorizonProtocol.com

  8. Now, once the C-ratio is marked ‘Good,’ the member can: • Continue to receive fees with currently minted assets Increase the amount of HZN staked with HZN rewards thereby maximizing rewards Stake with automatically released HZN should HZN price increase from the point of when they staked therefore decreasing the amount of HZN necessary to collateralize their debt • • HorizonProtocol.com

  9. Remember, the user must also consider the market fluctuations of the HZN price and leave a buffer accordingly to cushion any untoward impact due to higher prices. C-ratio fluctuates as per the value of the staking and the corresponding debt. Either the user will have to burn zUSD to lower debt or buy more HZN to maintain a higher C-ratio. There are various strategies a user can employ to manage their C-Ratio depending on their activity level and can be found here. HorizonProtocol.com

  10. Conclusion Staking HZN as collateral in Horizon Protocol is a critical action required by the system. HZN provides the foundation for synthetic assets to be traded within the protocol and is therefore heavily incentivized. Moreover, the 100% community distribution of HZN since its inception makes staking a part of the member activities. The idea is to maintain and incentivize a healthy collateral pool whilst bootstrapping early stage growth, that gains exponentially in the future. The high C-Ratio of 800% ensures the system, in the early stages of growth, can withstand volatility safely. Staking in Horizon Protocol is akin to earning more HZN by performing a critical network function and being rewarded for participating in the overall network growth. • • • • • HorizonProtocol.com

  11. A DEFI PLATFORM FACILITATING THE CREATION OF ON-CHAIN SYNTHETIC ASSETS REPRESENTING THE REAL ECONOMY HorizonProtocol.com github.com/Horizon-Protocol twitter.com/HorizonProtocol t.me/HorizonProtocol HorizonProtocol.medium.com reddit.com/r/HorizonProtocol

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