HIP-15: Add SOL to Horizon Futures

Add SOL market to Horizon Futures to expand trading options and incentivize more activity on the platform.

Type: Horizon Improvement Proposal Date: June 22th, 2024 Status: Completed

Summary

This HIP proposes to add Solana (SOL) to the Horizon Futures platform to increase the options available to traders and boost trading volume. By introducing SOL to the Futures market, we aim to enhance the platform's appeal and provide traders with more opportunities to diversify their trading strategies.

Specification

Add Solana (SOL) market on Horizon Futures and set the system parameters as below:

  • makerFeeOffchainDelayedOrder: 0.00015,

  • takerFeeOffchainDelayedOrder: 0.0006,

  • offchainDelayedOrderMinAge: 1,

  • offchainDelayedOrderMaxAge: 30,

  • maxLeverage: 27.5,

  • maxMarketValue: 14800,

  • maxFundingVelocity: 36,

  • skewScale: 2100000,

  • offchainPriceDivergence: 0.10,

  • liquidationPremiumMultiplier: 1.5625,

  • liquidationBufferRatio: 0.0075,

  • maxPD: 0.001602,

  • maxLiquidationDelta: 0.000801

Motivation

The primary motivation behind this proposal is to expand the range of assets available for trading on Horizon Futures, thereby providing a more comprehensive futures exchange. By offering an attractive and diverse set of markets, we aim to attract more traders to the platform, increase trading activity, and enhance overall market liquidity.

Given that zSOL, the synthetic equivalent of SOL on Horizon Protocol, ranks fourth by market cap among zAssets, it's the optimal choice for addition as the next Futures asset based on trader interest.

Considerations

  • Global Debt Pool Impact: Adding new assets to Horizon Futures will introduce increased volatility and potentially impact the global debt pool. Therefore, assets should be added gradually to ensure the platform's stability and manage risk effectively.

Post-Implementation Evaluation

Upon the addition of SOL to Horizon Futures, an evaluation will be conducted to assess the market's performance and impact. Key metrics such as trading volume, user activity, and market stability will be analyzed to inform future decisions and strategy adjustments. The aim is to continue to add more markets to Horizon Futures while maintaining an active risk management strategy.

Feedback & Questions

If you have any suggestions, concerns, or inquiries regarding this proposal, please don't hesitate to reach out. Your feedback is valuable in ensuring the success and continuous improvement of Horizon Futures.

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