zUSD and zBNB Pool Rewards Update

Horizon Protocol
3 min readFeb 2, 2024

We’re pleased to share an update regarding the zUSD and zBNB pools on the Wombat Exchange. These pools have been migrated from the Wombat Bribe system to the Wombat Rewarder system in order to maintain stability of rewards for LP stakers. LP stakers will now receive directly HZN rewards instead of WOM emissions.

Why the Change?

In the past, the bribe incentive methods on Wombat Exchange varied between 75% to 125%, causing issues with the efficiency of bribing in Horizon pools and making it tough for liquidity providers (LPs) to get consistent rewards. Also, Wombat has been cutting down on inflation in emissions weekly since February for sustainability reasons. As a result, the bribe system is less effective now, leading to a more efficient approach of directly using HZN to stabilize rewards.

What’s Different Now?

The liquidity in the current pools contract location remains unchanged. The primary change lies in the LP incentive top-up contract, where HZN will be distributed directly to LPs without passing through the bribe system. Nothing changes from the user perspective other than the fact that they will now get HZN as rewards instead.

Impact on LP Providers on Wombat Exchange:

No action is required from LP providers. You can continue to claim HZN as rewards, which is a departure from the previous bribe system where voters took HZN rewards.

Wombat Aggregator — Magpie:

Pools from the Wombat aggregator — Magpie, which rewards the HZN token, will be automatically updated upon the deployment of the new Rewarder LP incentive pool.

There is no need for additional actions, as the Magpie side will seamlessly pick up the rewards in the form of HZN tokens.

Wombat Aggregator — Wombex:

Regarding pools on the Wombat aggregator Wombex: the Wombex team is currently in transition, and have not yet provided clarification on how the LP providers can claim their rewards.

Rest assured though, as LP providers can unstake from Wombex and stake directly on Wombat Exchange or Magpie for boosted rewards. We will keep you posted on any developments.

Exciting News for zUSD and zBNB Pools:

zUSD and zBNB Pools will be a part of Wombat’s newly launched gamified bribe market 2.0. More details will be announced soon.

To enhance the effectiveness and sustainability of Horizon Protocol’s ecosystem, we will continue monitoring the APR and TVL of all our liquidity pools on Wombat Exchange and PancakeSwap.

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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