To incentivize liquidity, Horizon Protocol offers a staking mechanism that involves creating zUSD, which earns weekly rewards. These rewards are generated through the token's inflationary policy and fees collected from the trading of zAssets. They are subsequently distributed to all HZN stakers as debt forgiven.
When a user stakes HZN to mint zUSD, their stake is pooled with others, thereby collateralizing all zAssets within the Horizon Protocol network. As a participant, you can mint zUSD, essentially establishing an interest-free debt position within the network. To qualify for rewards, this debt must meet collateralization requirements, and you must maintain a sufficient C-Ratio. Savvy users can utilize this debt to generate yield through LP staking or trading on Horizon Protocol.
Any holder of HZN tokens can stake on the network without specific minimum requirements. However, BNB tokens are necessary to cover network gas fees.
To begin staking, refer to the section.
