Horizon Academy
English V3
English V3
  • Horizon Academy
  • Horizon Protocol
    • Introduction
      • Tokenomics
      • Business Model
      • Synthetic Assets - zAssets
    • Security Audit
    • Community
      • How to Initiate a HIP
      • HIPs
        • HIP-23 Revenue Sharing Model: Intent-based System Phase one
        • HIP-22: Create a zUSD - USDC pool on Pancakeswap V3
        • HIP-21: Stop Incentives to the zBNB - BNB pool on Wombat Exchange
        • HIP-20: Suspend zMATIC Market and Introduce zPOL Ahead of MATIC to POL Migration
        • HIP-19: Temporarily reduce C-Ratio to 350%
        • HIP-18: Add DOGE and SHIBA to Horizon Futures
        • HIP-17: Add DOT, AVAX, and MATIC to Horizon Futures
        • HIP-16: Add XRP, ADA, and LINK to Horizon Futures
        • HIP-15: Add SOL to Horizon Futures
        • HIP-14: Reduce Trading Fees during Horizon Futures Promotional Period
        • HIP-13: Suspend zNVDA market ahead of Stock Split and convert zNVDA to zUSD
        • HIP-12: Updated Utilization of zUSD & zBNB Liquidity
        • HIP-11: Redirect HZN from EARN Pool to PancakeSwap as ‘Bribe’ using Cakepie
        • HIP-10: Use zAssets from Community Fund staking to provide liquidity on Wombat via Yield Aggregator
        • HIP-9: Redirect HZN from EARN Pools to Wombat Exchange as ‘Bribes’
        • HIP-8: Move the zUSD-BUSD and zBNB-BNB Liquidity Pools to Wombat Exchange
        • HIP-7: Utilize the Community Fund for Additional Liquidity
        • HIP-6: Lower Target C-Ratio to 600% from 700%
        • HIP-5: List New zAssets
        • HIP-4: Use Keepers to Close Weekly Fee Periods
        • HIP-3: Suspend zTSLA ahead of Stock Split
        • HIP-2: Lower Target C-Ratio to 700%
        • HIP-1: Create incentivized zBNB/BNB pool
      • Community Grant Program
    • FAQs
  • Stake & Earn
    • Introduction
    • Staking on Horizon Protocol
      • Staking and Rewards
      • Mint, Burn, and Claim
      • Collaterialization and C-Ratio
      • Liquidation
      • Managing Risk
      • C-Ratio Strategies
      • Hedge your Portfolio
    • Interfaces
      • Account - Escrow
      • Account - Authorize
      • Account - History
    • Guides
      • How to Stake by Minting zUSD
      • Adding Liquidity for zUSD and zBNB pools
      • Add Liquidity for HZN-BNB
      • Remove LP Tokens for zUSD-BUSD Pool
      • Setting Up Chainlink Automation
  • Educational Articles
    • Glossary and Definitions
    • What are DeFi Derivatives and how are they used
    • A Brief History of Synthetic Assets and Financial Derivatives
    • DeFi Derivative Projects
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  • Spot Exchange Fees
  • Futures Exchange Fees
  • Interests via zAsset Loans
  • Wrap/Unwrap Fees for Token Wrappers
  1. Horizon Protocol
  2. Introduction

Business Model

How Horizon Protocol generates fees

For any project to achieve long-term sustainability, it must establish a viable business model that generates fees, often referred to as "Real Yields." This means that the project's fee generation comes from sources other than inflation.

Horizon Protocol has been designed to ensure its sustainability. The initial inflation via tokenomics will provide the necessary resources for the project to grow. As it matures, Horizon Protocol shifts its focus towards generating fees through protocol usage, reducing its dependence on token inflation.

All fees collected by Horizon Protocol are distributed among HZN token holders who actively participate in staking. These fees encompass various sources:

  • Spot Exchange Fees

  • Futures Exchange Fees

  • Interests via zAsset Loans

  • Wrap/Unwrap Fees for Token Wrappers

Spot Exchange Fees

A percentage of each trade on Horizon Protocol’s Spot market generates fees that go to the project's stakers.

Trading fees vary based on the price variance threshold of each zAsset and the market's volatility.

Futures Exchange Fees

A percentage of each trade on the Horizon Futures Exchange generates fees that go to the project's stakers.

Interests via zAsset Loans

In the future, Horizon Protocol will introduce zAsset loans, generating additional revenue through interest. All zAsset loans, including collateralized shorts, will incur interest payments to Horizon Protocol, operating similarly to traditional loans.

Wrap/Unwrap Fees for Token Wrappers

Horizon Protocol is expanding collateral options within the protocol. Currently, the primary collateral is zUSD, minted through HZN staking. In the future, users will be able to wrap other tokens into zAssets. Wrapping and unwrapping token wrappers will incur a small fee, generating revenue for protocol stakers.

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