HIP-20: Suspend zMATIC Market and Introduce zPOL Ahead of MATIC to POL Migration
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Last updated
Last updated
Type: Horizon Improvement Proposal
Date: September 3rd, 2024
Status: Draft 1 | Completed
This proposal outlines the steps Horizon Protocol will take in response to Polygon's announcement of the migration from MATIC to the new Polygon Ecosystem Token (POL). The MATIC token will be replaced on a 1:1 basis by POL starting September 4th, 2024.
We propose temporarily suspending the trading of zMATIC and facilitating the transition to zPOL on the Horizon Spot Exchange. This proposal also addresses the handling of any remaining zMATIC tokens to ensure the protection of users’ zAsset portfolios during this transition.
Launch of zPOL on Horizon Spot Exchange:
On September 4th, 2024, the zPOL market will be launched on Horizon Spot Exchange.
Users holding zMATIC are advised to convert their zMATIC to zPOL on the Horizon Spot Exchange within 7 days, to ensure a smooth transition and avoid potential losses associated with the discontinuation of the zMATIC token.
Suspension of zMATIC Market:
On September 11th, 2024, the zMATIC market will be closed on Horizon Spot Exchange via the suspendSynth function in the SystemStatus contract.
This action will effectively halt all trading activities involving zMATIC, ensuring that the token is phased out of the system in a controlled manner.
Automatic Conversion to zUSD:
Following the closure of the zMATIC market, the Horizon Protocol DAO multisig will automatically convert any remaining zMATIC tokens to zUSD at the market closing price prior to the suspension of zMATIC.
This conversion is designed to protect the zAsset portfolio value of users who are unable to complete the transition to zPOL before the market closes.
The MATIC to POL migration by Polygon necessitates corresponding actions within the Horizon Protocol to maintain the integrity and stability of our synthetic asset markets. This HIP ensures a seamless transition from zMATIC to zPOL, preventing any disruptions that could arise from the migration.
By suspending the zMATIC market and encouraging the transition to zPOL, we aim to safeguard users from potential losses due to market discontinuity. The automatic conversion of any remaining zMATIC to zUSD ensures that users’ portfolio values are protected, even if they are unable to participate in the manual conversion process.
Transition:
The suspension of the zMATIC market and the automatic conversion to zUSD will occur after the 7-day transition period, allowing ample time for users to adjust their holdings.
Users should be aware that the conversion price may not reflect the optimal market conditions, but this action is deemed necessary to protect against any abrupt value loss.
Perpetual Futures:
MATIC market trading on Horizon Protocol’s Futures Market is now disabled.
Trading of POL on the Futures Market will commence on September 4th, 2024, to align with the migration and ensure the continuation of futures trading opportunities for users.
As always, we invite community feedback to assess whether this course of action is the most effective. This is an open discussion, and we encourage all stakeholders to share their thoughts and concerns to refine this proposal.
Please reach out if you have any questions or require further clarification.
