How to Stake by Minting zUSD
Instructions on how to stake on Horizon Protocol by minting zUSD.
Instructions on how to stake on Horizon Protocol by minting zUSD.
To start, you will need a wallet which with which you can connect to Horizon Protocol. Because Horizon Protocol operates on the BNB Chain, please make sure that your wallet is BNB Chain compatible.
Horizon Protocol supports various wallet options, such as Metamask, Trust Wallet, WalletConnect and more. By clicking on "Connect Wallet" at the top right corner, you will see which wallets are available to you.
Only wallets that are installed on your machine will be visible, so if you are missing a wallet option, first make sure that you have the app or the browser extension of that wallet installed.
Note that Hardware wallets (Ledger, Trezor) are not supported natively by Horizon Protocol, however, are available through MetaMask and WalletConnect.
You will need to acquire two types of tokens to be able to stake:
HZN tokens for staking
BNB tokens to pay for network gas.
HZN is the token for the Horizon Protocol network that supports and underlies the synthetic assets produced on the network.
You can buy HZN via the following exchanges:
Decentralized Exchanges (DEX)
Alternatively, you can also swap other tokens for HZN through our integrated bridge (powered by Socket). You will find all the options available by clicking on the "Get HZN" button on the staking page.
Visit Horizon Protocol and connect your wallet by clicking on the top right corner and selecting your preferred wallet if you haven't already.
After connecting your wallet, you are ready to stake. Minting means you will be staking your HZN to create zUSD. The maximum amount of zUSD you can mint is at a 600% C-Ratio, which means that for every $600 USD worth of HZN, you will be able to mint $100 zUSD.
To begin minting, you can either:
Select a Preset Strategy You can choose how much you want to Mint by selecting a preset strategy. Aggressive will populate the maximum amount of zUSD that is mintable, given your HZN holdings. Neutral and Conservative helps create a bit of a buffer so zUSD does not need to be as frequently burnt or HZN added to maintain the 600% C-Ratio. Learn more about strategies.
Select Amount of HZN to Stake You can type in how much HZN you want to stake. Clicking on Mint Max will collateralize at 600%, the same as using the Aggressive strategy.
Select Amount of zUSD to Mint You can type in exactly how much zUSD you want to mint.
Use C-Ratio Slider You can select the precise amount of C-Ratio you would like to mint at in iterations of 10%.
Note that the minimum amount of staking days is currently set at 7. During this period, you won’t be able to burn your entire stake, however, you can still utilize the existing tools to burn to the target C-Ratio or choose to self-liquidate if needed. This timer is reset whenever you peform a minting action.
Once a week, on Fridays, rewards will be available to be collected. To do this, just go to the Claim tab and click Claim. The button will only be available if you have unclaimed rewards available. If you have already claimed your rewards for the week, or if you are not entitled to rewards, a message saying "No Rewards" will appear instead. A notification will display on the Claim tab if there are rewards available for you to claim.
The rewards can only be collected if your C-Ratio is 600% or more. There is a small percent buffer under 600% where you can still claim your rewards. If it's less, you will need to go to the Manage tab to burn some zUSD.
Should you not have sufficient zUSD, there is also the option to self-liquidate. This mechanism allows you to restore your C-Ratio by leveraging the HZN in your wallet. However, it's important to note that this comes with a penalty of 50%. Alternatively, you can simply add more HZN to your wallet.
The following rewards are available, and the amount you are entitled to are based on your amount of debt shares.
HZN Rewards from Staking: These are determined by the inflation policy.
Debt Forgiven: This revenue is generated through trade fees on the Horizon Spot Exchange and Horizon Perpetual Futures. Instead of direct distribution trading fee, the “zUSD debt forgiven” are systematically burned weekly, reducing the overall debt ratio for all participants.
HZN Rewards from Liquidations: Whenever a staker gets liquidated, penalty HZN is deposited into a pooled contract and redistributed to stakers based on their Debt Share.
