zUSD & zBNB Liquidity Pools Are Now Live on Wombat!

Horizon Protocol
3 min readSep 20, 2023

We are pleased to announce that both of our zAssets on-ramp Liquidity Pools are now live on Wombat! You can now go to the Wombat Exchange app and start staking in the zUSD and zBNB Liquidity Pools.

At the time of writing, the zUSD Liquidity Pool offers a base APR of 6%. Stakers can improve this by locking their WOM tokens for an additional 10% APR, totaling an average total APR of 16%.

The zBNB Liquidity Pool offers a base APR of 42.56%, which can be boosted by an average total APR of ~71%, for a total of 113% APR.

The APR varies based on changes in the deposited liquidity and weekly WOM emission. Additionally, Wombat provides boosted yields for stakers that lock their WOM tokens. This article gives more information on Wombat’s Yield Boosting.

Feel free to explore our step-by-step guide on adding zUSD/zBNB liquidity, designed to simplify and support your staking journey.

With this move, we have now completed HIP-8: Move the zUSD-BUSD and zBNB-BNB Liquidity Pools to Wombat Exchange and HIP-9: Redirect HZN from Earn Pools to Wombat Exchange as ‘Bribes’.

What’s Next?

We understand that initial liquidity levels on Wombat Exchange may be limited. This is a common occurrence during the launch phase, particularly for newer pools, as acknowledged by Wombat. Over time, these pools naturally find their balance.

That’s why we encourage Pancake stakers to transfer their liquidity to Wombat as soon as possible, as Pancake’s pool incentives have been discontinued.

Furthermore, we have already implemented and are actively progressing with the remaining HIP proposals, all of which are aimed at improving the liquidity of zAssets. Below you will find a brief summary of the HIPs that are in progress, along with links for accessing the complete proposals.

HIP-7: Utilize the Community Fund for Additional Liquidity

- We have allocated 15,000,000 HZN from the community fund towards a dedicated staking wallet, and have started the process of using it to boost the liquidity of our pools. Due to security factors this HIP is currently in an on-going process.

Benefits include:

  • Reducing slippage for on/off ramps.
  • Ensuring more favorable trading.
  • Stabilizing the zUSD peg.
  • Facilitating more seamless trading for both existing and new users.
  • Increasing the protocol’s TVL.

HIP-10: Use zAssets from Community Fund staking to provide liquidity on Wombat via Wombex Finance

Utilize Wombex — a yield aggregator to increase the revenue generated for the liquidity staked, which will be directed in full back to the Community Fund. This strategy can offset costs and aid in the sustainable growth of the protocol. This HIP will be executed once the pools are live on Wombex.

Wombat Exchange

Wombat is a multi-chain stableswap backed by Binance Labs, native on BNB Chain. Its innovative single-sided pool design allows users to swap stablecoins at minimal slippage and stake at maximum yield. Below are some of the benefits Wombat brings:

- Scalable Equilibrium: Innovate coverage-ratio-based stableswap mechanism to remove scalability barriers, which allows the possibility of achieving 100% capital utilization with no impermanent loss.

- Slippage minimization: Wombat adopts the asset-to-liability model; slippage is negated until higher transaction amounts and reduced when it occurs.

- User-Friendly UI/UX: Simple and accessible interface with pure single token pool design.

-Foundation for DeFi to build upon: A pure single-token pool design enables single-token LP tokens, ideal for borrowing and lending protocols and trading platforms to build on top of.

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.

--

--