HIP-14: Reduce Trading Fees during Horizon Futures Promotional Period
With the upcoming Horizon Futures mainnet release, this proposal aims to reduce maker fees by up to 1 basis point (bps) and taker fees by up to 2 bps, while subsidizing order execution keeper fees during the Horizon Futures promotional period. This initiative will lower entry barriers for traders, encouraging more activity and exploration of the platform. The promotion will initially cover BTC, ETH, and BNB markets, as well as any new markets launched during this time.
By reducing fees, we aim to attract new and existing users, creating a vibrant trading environment and gathering valuable user feedback for continuous improvement.
Read the full HIP below or visit our Academy for more details.
Type: Horizon Improvement Proposal
Date: June 14th, 2024
Status: Draft 1
Summary
This HIP proposes to reduce maker trading fees and subsidize keeper fees to stimulate participation and engagement during the Horizon Futures promotional period. This initiative aims to reduce barriers to entry for traders, encouraging heightened activity and exploration of the platform’s features. BTC, ETH, and BNB markets will be available at the initial launch of Horizon Futures. This HIP will apply to these markets and any new markets deployed during the promotional period. Lower fees will bolster platform’s attractiveness to both new and existing users, fostering growth of the trading environment while gathering essential feedback for continuous improvement.
Specification
- Call the setMakerFeeOffchainDelayedOrder function in the PerpsV2MarketSettings contract and reduce maker fees for all markets on Horizon Futures by up to 1 bps during the promotional period.
- Call the setTakerFeeOffchainDelayedOrder function in the PerpsV2MarketSettings contract and reduce taker fees for all markets on Horizon Futures by up to 2 bps during the promotional period.
- Call the setMinKeeperFee function in the PerpsV2MarketSettings contract and set it to 0.
- Completely subsidize the costs of the order execution keepers with the community fund.
Motivation
The primary motivation behind this proposal is to drive user acquisition, increase trading volume, and gather valuable insights for platform enhancement. By reducing cost barriers and incentivizing traders, we anticipate increased user participation, resulting in a more liquid and vibrant trading ecosystem. Furthermore, combining this incentives with special activities like trading competitions will serve as an opportunity to solicit feedback from active traders, enabling us to identify pain points, address user needs, and continue to refine our platform offerings for an optimal user experience and competitiveness
Considerations
- Impact on Stakers: During the promotional period, stakers will earn less trading fee rewards typically earned from trading volume. However, the overarching objective is to attract new traders to the platform, expanding the user base and enhancing the ecosystem’s overall value proposition. Stakers stand to benefit from a larger and more active trading community, which could translate into greater future trading fees and a more robust and sustainable token economy.
- Post-Competition Evaluation: Upon the promotional period conclusion, a comprehensive evaluation will be conducted to assess the initiative’s efficacy and impact. Key metrics such as user acquisition, trading volume, and user feedback, will be analyzed to inform future decision-making and strategy formulation. Insights gleaned from the evaluation process will guide ongoing efforts to refine platform features, optimize user experience, and sustain long-term growth and competitiveness.
Feedback & Questions
If you have any suggestions, concerns, or inquiries regarding this proposal, please don’t hesitate to reach out.
Horizon Protocol is a decentralized derivatives trading and liquidity protocol providing decentralized access to the real-world economy through synthetic assets. Through Horizon Protocol, users can access swaps and perpetual futures of RWA (real-world assets), including fiat currencies (i.e., USD, EUR, JPY), and commodities (i.e., gold, silver).
By leveraging a peer-to-pool model, Horizon Protocol offers DeFi traders low fees, deep liquidity, and zero slippage when trading borderless synthetic assets. Our focus on seamless UI/UX and educational content empowers our community to harness the full potential of DeFi derivatives.
