Update: HIP-11 Redirect HZN from EARN Pool to PancakeSwap as ‘Bribe’ using Cakepie

Horizon Protocol
3 min readJan 22, 2024

We are excited to announce that, following the positive support of the community for HIP-11, we are advancing with the migration of HZN incentives from the EARN staker to Pancakeswap Voting Gauges by leveraging Cakepie’s Bribery Market. This implementation will impact the next epoch, starting Feb 1st.

Context

In recent months, we’ve witnessed a transition in the BNB Chain DeFi Landscape towards a more dynamic liquidity incentives system that mirrors the battle-tested CRV model from Curve. Our first move in that direction was to migrate zUSD and zBNB pools to Wombat Exchange and redirect incentives to its bribery market, allowing collaborations with Wombex and Magpie.

With the recent implementation of the veCAKE model by PancakeSwap, it is logical for us to migrate incentives to leverage the newly created bribery market on Cakepie and take advantage of enhanced yield and ecosystem growth opportunities.

On Dec 19th, 2023, HIP-11 was presented to the community for open discussion. Two weeks later, a second draft of HIP-11 was published, including considerations and improvements based on community feedback. In addition to this improved version of HIP-11, we conducted a Horizon Space with Cakepie’s team to better understand the potential benefits and risks of this implementation.

After this nurturing community deliberation process and with the coordinated efforts of Horizon Protocol, Cakepie, and Pancakeswap teams, we are ready to proceed with the implementation of HIP-11.

Next Steps

Pancakeswap organizes the distribution of CAKE emissions by two-week epochs. During one epoch, voters decide the percentage of CAKE emissions that will be distributed to each pool in the next epoch. Therefore, to have a continued incentive for our HZN-BNB pool, it’s necessary to send bribes to the Cakepie Bribery Market in advance. Since the current EARN staker receives incentives from the weekly emissions, this action will require moving funds from the Community Fund to support the transition of incentives towards the HZN-BNB Cakepie’s Bribery Market. In the following epochs, weekly emissions can be redirected towards Cakepie’s Bribery Market.

Once the next epoch starts, liquidity providers can stake LP tokens on PancakeSwap FARMS to start earning CAKE. There will be a short period of time since incentives stop at Horizon Protocol EARN and start at PancakeSwap FARMS. LP token holders can unstake from EARN and re-stake on FARMS at their convenience. No further action is required in order to continue earning rewards.

Here is an estimated schedule for the next steps:

An estimated schedule for the next steps

A more detailed guide on how to unstake LP tokens and re-stake them on PancakeSwap FARMS will be shared closer to the date this action is required. In the meantime, you can enjoy your HZN incentives as usual on EARN!

Special thanks to all the community members that contributed to crafting this HIP-11 with valuable questions and insights. We look forward to bringing more proposals to the table and continue to shape the future of Horizon Protocol together!

If you have any questions or comments regarding HIP-11 or any other relevant topic, please reach out to our CMs on Telegram or Discord.

Horizon Protocol is a DeFi platform that facilitates the on-chain trading of synthetic assets that represent the real economy. Horizon Protocol seeks to provide exposure to real-world assets risk/return profiles via smart contracts on the blockchain.

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Horizon Protocol

A DeFi platform facilitating the creation of on-chain synthetic assets representing the real economy. https://horizonprotocol.com/