Thread on Horizon Protocol

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Crypto’s asset tokenization space is far from maturity and there are protocols out there primed to fill this gap. Let us see how $HZN @HorizonProtocol aims to do so ⬇️

In this thread ⬇️ 1. Horizon Protocol 2. Tokenomics 3. Synthetic assets (zAssets) 4. Horizon Genesis 5. Horizon Exchange 6. TL;DR and Concluding thoughts

1. Horizon Protocol - A DeFi project built on the BNB chain, forked from Synthetix - Aims to create a borderless financial market for synthetic assets

· Advantages of using Horizon protocol: - Faster, cheaper and scalable transactions - More focus on bringing a wider range of synthetic assets that represent real and crypto worlds

- More innovative synthetic assets such as zIndices, zNFTs, leveraged assets and more - Cross-chain interoperability with BSC, ETH, Solana, Polygon, Tron, Cosmos, Reef and more - Focused on UX and education - Community driven

The protocol consists of 2 main parts: · Horizon Genesis – creation of synthetic assets · Horizon Exchange – trading of synthetic assets

2. Tokenomics - Inflation policy to stimulate early growth and overall protocol health, which will take place over ~4.5 years - Motivates collateral providers, liq. providers and synthetic asset onramps - Rewards from inflationary policy are distributed to stakers and LPs

Table on the inflationary figures ⬇️

Graph showing inflationary policy playing out over the years ⬇️

3. Synthetic assets (zAssets) - Tokenized derivatives within the Horizon protocol – contracts representing the underlying value of an asset - Can be tokens, stocks, indices, NFTs, or other products - The DAO will manage and vote on the types of zAssets and collateral used

- To create a zAsset, users must put down collateral in the form of $HZN (Horizon Protocol’s native token) which is staked to make sure there is sufficient backing value - Dividends are paid out to all $HZN stakers that help to support the market

· zUSD - Core zAsset of the Horizon protocol, pegged to the USD - Total value of all zAssets is evaluated and denominated in zUSD

4. Horizon Genesis - Backbone of all synthetic assets in the Horizon Protocol ecosystem - Maintains the collateralization ratio by offering staking mechanism

· Collateralization and Liquidation - Collateralization of 800% (e.g., $8 worth of HZN to mint $1 zUSD), and must be maintained in order to collect weekly rewards from the system

- Liquidation flag raised at 200% C-ratio - To clear this flag, the user has to restore their C-ratio back to 800% within the 3-days grace period (manual function)

5. Horizon Exchange - Marketplace for trading of zAssets - Utilizes oracles to track their price movements

Oracles - Required to provide price feeds that determine the prices of assets listed in the Horizon Exchange - Oracle refresh prices based on 2 variables: · Heartbeat – a predetermined time period · Variance – a predetermined price threshold

Exchange fees - The fees differ from each zAsset due to their own specific oracle price feed - 3-minute waiting period whenever a trade occurs, to prevent front-running due to oracle latency

6. TL;DR and Concluding thoughts - Horizon protocol is a DeFi platform built on BNB chain, aiming to create borderless financial markets for synthetic assets - Comprises of 2 main parts: Horizon Genesis and Horizon Exchange

- Horizon Genesis is where synthetic assets are created - Horizon Exchange hosts a marketplace for synthetic assets - zAssets are synthetic assets on the Horizon Protocol, with zUSD as its core zAsset

- There is a collateralization ratio of 800%, which is a lot higher compared to other protocols which offer similar models. - Introduction of more synthetic assets would likely drive more interest, translating to higher protocol revenues, benefiting $HZN stakers.

- As usual, there are risks involved in participation, and the prevalent ones here are smart contract, settlement and liquidation risks. - More to be done and rolled out in the crypto asset tokenization space. Huge potential as TradFi derivatives markets have not fully onboarded

Here are some resources for a further dive into $HZN @HorizonProtocol: Horizon Protocol website – horizonprotocol.com/ Horizon Protocol medium – horizonprotocol.medium.com/ Horizon Academy / documentation – academy.horizonprotocol.com/