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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  • Mint
  • Burn
  • Claim
  1. Stake & Earn
  2. Staking on Horizon Protocol

Mint, Burn, and Claim

Staking on Horizon Protocol is straightforward and involves three primary actions: Mint, Burn, and Claim.

Mint

Minting is the process of creating or borrowing zUSD, a zAsset stablecoin tied to the value of the US Dollar, by staking HZN as collateral. zUSD can be used for trading other zAssets on Horizon Spot and Horizon Futures. (It's worth noting that zUSD is pronounced zee-USD.)

The concept of minting zUSD by staking HZN is akin to taking a mortgage on your home. Just as you can use your home as collateral to borrow money from a bank, minting involves pledging HZN as collateral to "borrow" zUSD. To regain access to your HZN, you'll need to burn or "return" the zUSD. Therefore, zUSD is essentially borrowed money, also referred to as debt.

Burn

Burning refers to the act of returning or repaying some of the borrowed zUSD during the minting process to maintain a balanced C-Ratio (collateralization ratio).

Claim

Claiming involves collecting your rewards for providing collateral to the protocol. These rewards are distributed on a weekly basis, every Friday around 15:00 UTC.

Please note that all Staking Rewards (in HZN) from your claimed rewards will be escrowed for one year starting from the date you claim them.

The minimum stake time is 7 days.

During this period, stakers won’t be able to burn their entire stake, however, they can still utilize the existing tools to burn to the target C-Ratio or choose to self-liquidate if needed.

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