HIP-6 - Lower Target C-Ratio to 600%. Hey HZNation. We have drafted up a new HIP (Horizon Improvement Proposal).

20 Apr 2023, 19:16

💬💬HIP-6 - Lower Target C-Ratio to 600%💬💬 👋Hey HZNation! ✍️We have drafted up a new HIP (Horizon Improvement Proposal). This one discusses the idea of lowering the Target C-Ratio from 700% to 600%. If this proposal is to go through, it would be the second change to the Target C-Ratio. The first time was the change from 800% to 700%, almost a year ago. The goal of this proposal is to discuss together whether lowering the Target C-Ratio is warranted or not. 📚Motivation for lowering the Target C-Ratio: This change would help increase the total zAsset liquidity, e.g. zUSD. This in turn will help users who are only interested in trading on Horizon Exchange without the need to stake HZN first. Additionally, increased zAsset liquidity can facilitate a higher trading volume, which in turn means more zUSD rewards for HZN stakers from the additional exchange fees. We expect an increase in zAsset demand as the roll out for Perpetual Futures trading and the major improvements on Horizon Exchange commences. By implementing these changes gradually, we expect that entering the Horizon Protocol ecosystem will become much easier for new traders. 📌Proposed changes to the C-Ratio preset strategies: • Aggressive: 700% to 600% • Neutral: 900% to 800% • Conservative: 1100% to 1000% 📝To read the proposal in its entirety, such as our additional thoughts or the potential risks, you can click here to get redirected to Horizon Academy. 👉If you're not familiar yet with HIPs, or simply wish to learn more about them, please check out the HIPs section on Horizon Academy. 💬 Are you in favor or opposed to these changes? Do you need more information to make a determination? Let us know what you think!

Same news in other sources

Horizon ProtocolHZN #1452

20 Apr 2023, 20:33

💡 HIP-6: Lower C-Ratio Horizon Improvement Proposal #6 to reduce the target C-Ratio to 600% is now open for community evaluation and discussion 💬 Read the full proposal in our Academy and share your thoughts! 📚

HIP-6: Lower C-Ratio.