Horizon Protocol

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Discover Horizon Protocol's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Horizon Protocol?

Horizon Protocol (HZN) is a decentralized derivatives trading and liquidity platform that allows users to access and trade synthetic assets (zAssets) linked to real-world assets. The protocol uses collateral and price oracles to back these synthetic assets, enabling users to engage in derivatives trading with features like low fees, high leverage, and deep liquidity. Additionally, users can stake their HZN tokens as collateral to mint synthetic assets and earn interest.

How is Horizon Protocol used?

The Horizon Protocol (HZN) is a decentralized platform for creating and trading synthetic assets on the blockchain. The native token, HZN, serves as collateral for these synthetic assets and derivatives. Users can stake their HZN tokens in a community-based liquidity pool, which incentivizes them with additional HZN rewards from the protocol's inflation policy and 0.3% exchange fees per transaction. This staked HZN is used as collateral to mint synthetic assets, such as zUSD, which is pegged to the US dollar. The protocol maintains a collateralization ratio of 750% to protect investors from market volatility and avoid liquidation penalties. The Horizon platform also allows users to trade these synthetic assets without slippage, ensuring that orders are executed at the desired price. Additionally, HZN holders can participate in network governance by voting on protocol parameters and improvement proposals.

How do I store Horizon Protocol?

To store Horizon Protocol (HZN) tokens, you can use a variety of cryptocurrency wallets that support the token. Here are some options:

  1. Atomic Wallet: Atomic Wallet is a trusted and user-friendly option that supports over 1000 coins and tokens, including HZN. It offers a desktop and mobile app, ensuring private and secure management of your funds without requiring registration or KYC.

  2. Trust Wallet: Trust Wallet is another reliable option that supports HZN. You can download the wallet via Google Chrome extension or mobile app and set it up to store your HZN tokens. This wallet is part of the BNB Chain network and is compatible with decentralized exchanges like Pancake Swap.

  3. Bitrue Wallet: Bitrue also offers a wallet that supports HZN. Once you purchase HZN, it will be stored in your crypto wallet.

These wallets provide a secure and convenient way to manage your HZN tokens. Always ensure you follow the wallet's setup and security guidelines to protect your assets.

How to buy Horizon Protocol?

To buy Horizon Protocol (HZN) tokens, you can follow these steps:

Buying on a Centralized Exchange (CEX)
  1. Choose a Reliable CEX: Select a trustworthy centralized exchange that supports Horizon Protocol (HZN) purchases. Consider factors such as ease of use, fee structure, and supported payment methods.

  2. Create an Account: Register on the exchange's website or app, providing the required information and setting a secure password. Enable two-factor authentication for added security.

  3. Verify Your Identity: Complete the Know-Your-Customer (KYC) verification process, which may vary depending on your nationality and region.

  1. Add a Payment Method: Follow the exchange's instructions to add a credit/debit card, bank account, or other supported payment methods.

  2. Buy Horizon Protocol (HZN): Use fiat currency to purchase a popular cryptocurrency like USDT or BNB, and then exchange it for Horizon Protocol (HZN) on the exchange.

Buying on a Decentralized Exchange (DEX)
  1. Choose a Wallet: Select a reliable crypto wallet that supports the blockchain where Horizon Protocol (HZN) is listed.

  2. Download and Set Up the Wallet: Download the wallet app or browser extension and create a new wallet address or import an existing one. Keep your seed phrase secure.

  3. Buy a Base Currency: Purchase a cryptocurrency like BNB or ETH using fiat, depending on the blockchain where Horizon Protocol (HZN) is listed.

  1. Transfer to Your Wallet: Transfer the base currency to your wallet.

  2. Connect to the DEX: Connect your wallet to a DEX that supports Horizon Protocol (HZN), such as PancakeSwap.

  3. Swap for Horizon Protocol (HZN): Trade your base currency for Horizon Protocol (HZN) on the DEX.

Additional Tips
  • Be cautious of fees and ensure you understand the risks associated with investing in cryptocurrencies.
  • Always use official sources and be wary of scams.
  • Keep your seed phrase and wallet address secure.
  • Consult local authorities for tax information.

By following these steps, you can successfully buy Horizon Protocol (HZN) tokens on either a centralized or decentralized exchange.

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History of Horizon Protocol

The Horizon Protocol (HZN) is a decentralized derivatives trading and liquidity protocol that provides access to the real-world economy through synthetic assets. It was launched in mid-April 2021, and its native token, HZN, serves as collateral for on-chain synthetic assets and derivatives markets.

Initial Offering and Price History

During its Initial Farm Offering (IFO) in mid-April 2021, HZN traded at an initial price of $0.25. The price then rose to a historical peak of $1.7 but corrected itself, dropping by almost 250% to $0.50 on April 23. After a price correction, the price increased by 100% to $1, possibly fueled by the overall bullish trend for the cryptocurrency market. However, the price plummeted following negative cryptocurrency headlines and stabilized at around $0.10.

Token Supply and Inflation Policy

The total supply of HZN tokens is 100 million, with 40 million in circulation. The network allocated 10 million tokens for the IFO on PancakeSwap and 30 million for liquidity mining. Horizon Protocol implemented an inflation policy that lasts four and a half years, increasing the total supply to approximately 260 million. This policy encourages early growth by rewarding users who provide collateral and liquidity.

Platform Features and Governance

Horizon Protocol is built on the Binance Smart Chain (BSC), which offers faster transactions and cheaper fees compared to Ethereum. Users can stake HZN to receive synthetic assets and participate in liquidity mining. The platform also has a decentralized autonomous organization (DAO) that manages network governance, including collateralization ratios, staking and liquidity pool rewards, and exchange fees. HZN holders can develop and vote on Horizon Improvement Proposals.

Current Status and Market Performance

As of the current date, the market capitalization of Horizon Protocol is around $5.71 million, with a circulating supply of 162.87 million HZN tokens. The token's price has fluctuated over time, influenced by market trends and the overall performance of the cryptocurrency market.

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How Horizon Protocol works

Horizon Protocol (HZN) is a decentralized finance (DeFi) platform that allows users to trade synthetic assets, known as zAssets, which are linked to real-world assets. These zAssets are collateralized by the Horizon token (HZN), ensuring that there is sufficient collateral during price fluctuations. Here's how it works:

Staking and Collateralization

HZN holders can stake their tokens to mint zAssets, which are tradable across various blockchains. The collateralization ratio is set at 750%, meaning that for every zAsset issued, the staker must provide 750% of its value in HZN as collateral. This ensures that the system remains stable even during price fluctuations. If the HZN price changes, the staker must adjust their collateralization ratio by burning or creating zAssets to reclaim their HZN.

Staking Rewards and Fees

Stakers are incentivized to participate in the system through staking rewards, which are generated from the token’s inflationary monetary policy and exchange fees from the Horizon Exchange. Each transaction on the Horizon Exchange incurs up to a 0.3% exchange fee, which is distributed to HZN stakers.

Interoperability and Scalability

Horizon Protocol is built on the Binance Smart Chain (BSC), offering faster and more affordable transactions compared to the Ethereum blockchain. Additionally, it leverages cross-blockchain platforms like Cosmos, Tendermint, and Polkadot to enable seamless interoperability with other blockchains such as Ethereum and NEO.

Governance

The platform is committed to achieving a fully decentralized governance structure, where HZN stakers have the power to develop and vote on Horizon Improvement Proposals (HIPs). This decentralized autonomous organization (DAO) will manage critical aspects of the protocol, including collateralization ratios, staking rewards, and exchange fees.

Token Distribution

The initial supply of 100 million HZN tokens is distributed entirely through community mining, with no team or foundation allocations. This ensures that the community is involved in the usage of these funds and maintains transparency.

Overall, Horizon Protocol provides a platform for users to access real-world assets through synthetic assets, leveraging the power of blockchain technology and decentralized governance.

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Horizon Protocol's strengths

The Horizon Protocol (HZN) token has several strengths that contribute to its potential success:

  1. Inflation Policy: The inflation policy incentivizes collateral providers, liquidity providers, and synthetic asset onramps. This policy stimulates early growth and enhances the overall health of the protocol by rewarding users who provide collateral and liquidity, thereby encouraging synthetic asset onramps.

  2. Tokenomics: The initial supply of 100 million HZN was distributed across various allocations, including the IFO, Liquidity Mining, and the Ecosystem & Community Fund. This distribution ensures a balanced supply and supports the protocol's growth.

  3. Staking and Liquidity Pools: Users staking HZN receive rewards, which are locked for one year. This mechanism encourages long-term participation and enhances the security of the protocol.

  1. Synthetic Assets: Horizon Protocol allows users to mint and trade synthetic assets (zAssets) linked to real-world assets using price oracles. This feature provides access to a broader range of assets and enhances the protocol's utility.

  2. Decentralized Governance: HZN holders can participate in network governance by managing parameters such as collateralization ratios, staking and liquidity pool rewards, and exchange fees. This decentralized governance ensures community involvement and decision-making.

  3. Scalability: Built on the Binance Smart Chain (BSC), Horizon Protocol benefits from faster transactions and lower fees compared to Ethereum, making it more scalable and efficient.

  1. Interoperability: The protocol uses cross-chain platforms like Polkadot and Cosmos to improve interoperability with other blockchains, enhancing its connectivity and potential for growth.

  2. Educational Content and UI/UX: Horizon Protocol focuses on providing seamless user interfaces and educational content to help users understand the power of DeFi derivatives, making it more accessible to a broader audience.

These strengths collectively contribute to the potential success and adoption of the Horizon Protocol and its native token, HZN.

Horizon Protocol's risks

Horizon Protocol (HZN) carries several financial risks that investors should be aware of. One significant risk is the platform's inflation policy, which can impact the value of HZN tokens. This policy incentivizes collateral providers, liquidity providers, and synthetic asset onramps, but it also introduces the possibility of inflation, which could negatively affect the token's value.

Another risk is associated with staking HZN tokens. Changes in the Global Debt Portfolio's value can impact the debt and the amount needed to repay to unstake HZN tokens. This mechanism can lead to losses if the portfolio's value decreases significantly.

Additionally, the platform's reliance on the Binance Smart Chain (BSC) and its interoperability with other blockchains can also introduce risks. While the BSC offers faster transactions and lower fees compared to Ethereum, it is still a relatively new technology, and its long-term stability and security are not yet fully proven.

Lastly, the platform's governance structure, which relies on a decentralized autonomous organization (DAO) managed by HZN holders, can also pose risks. The DAO's decision-making processes and the implementation of Horizon Improvement Proposals can be influenced by various factors, including the concentration of token holdings, which can impact the platform's overall direction and stability.

Overall, investors should carefully consider these financial risks before investing in Horizon Protocol (HZN).

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Did Horizon Protocol raise funds?

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Horizon Protocol’s team

  • Jonathan Ha: Former CEO of Red Pulse, involved in the development of Horizon Protocol.

Whalee AI

The fundamental analysis assistant for crypto value investors.

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