LIVE: Target C-Ratio Change
As you may know, the team has been busy with implementing the proposed HIPs.
The first one, HIP-2: Lower Target C-Ratio to 700%, is now live on mainnet.
HIP-2 is our first Horizon Improvement Proposal to have been implemented. Its proposition was to reduce all Target C-Ratios by 100%. This means that starting today the new ratios are:
- Aggressive: 700%
- Neutral: 900%
- Conservative: 1100%
- Lowering the Target C-Ratio to 700% will increase the total zAsset liquidity.
- Lowering it incrementally will make changes less volatile and allow the community to see its impact.
- By increasing the supply of zAssets, more liquidity can be supplied to the zUSD/BUSD LP, this will give new Horizon Exchange users access to a more liquid pool.
- The increased liquidity will make it easier for traders to enter the ecosystem.
- The increased liquidity will also allow more users to participate in these lower IL staking rewards to further boost liquidity in the pool.
HIP-1: Create incentivized zBNB/BNB pool will take more time to get implemented. We will keep you updated on it as it progresses.
You can read the proposal in its entirety, or learn more about HIPs in general, by visiting our docs on Horizon Academy: