What is Horizon Protocol?
Horizon Protocol (HZN) is a decentralized finance (DeFi) platform that enables users to create and trade synthetic assets representing the real economy through on-chain transactions. Synthetic assets are a type of asset whose value is derived from underlying assets, such as stocks or commodities. Horizon Protocol aims to provide a return profile of real-world assets exposure through smart contracts on the blockchain.
Horizon Protocol is a fork of Synthetix, which focuses on addressing scalability and affordability issues. Its users earn rewards by making stablecoins back synthetic assets and providing liquidity to replicate the underlying asset's price, volatility, valuation, and return. The platform also acts as an asset verification protocol that enables the validation and synthetic replication of assets in the real world.
The platform utilizes market, price, and economic data to price synthetic assets. It includes the Horizon exchange, which aims to increase accessibility to various real-world assets and enable easy trading between asset combinations. The exchange offers a suite of trading tools that includes trade histories, limit orders, and charts for technical analysis.
HZN is the native token of the Horizon Protocol that provides economic incentives to platform participants. HZN tokens can be used as collateral as part of the synthetic asset analysis, manage the reward system, and facilitate a DAO that governs the protocol and future development. HZN token holders stake their tokens into the liquidity pool and receive rewards.
By staking HZN tokens, holders can participate in the voting process for development and Horizon Improvement Proposals. Stakers manage protocol direction, functional improvements exchanges (fee, rewards, and burn), liquidity pool farms, staking and liquidity pool rewards, and collateralization ratio of zAssets (tradable synthetic assets of the platform).
The total supply of HZN tokens is one hundred million coins. Staking HZN tokens gives token holders the power to manage and control the platform's direction and earn rewards. HZN tokens also have the potential to increase in market value due to token burning, which occurs when tokens are sent to a wallet with no private key, making them lost forever.
Horizon Protocol offers an innovative solution to the problem of creating synthetic assets and increasing accessibility to real-world assets. With its focus on scalability and affordability, the platform aims to provide a more accessible and affordable alternative to traditional finance. The use of smart contracts and blockchain technology ensures a transparent and secure platform that is open to all.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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