zUSD & zBNB Liquidity Pools Migration Update
In the pursuit of providing a seamless experience for our users and preparing the upcoming Perpetual Futures exchange release, we have recently announced the start of the migration of zUSD and zBNB liquidity pools to Wombat Exchange.
The migration process consists of two stages:
-Passing two Wombat governance proposals to introduce weekly bribes in the voting gauge
-Effectively migrating the liquidity pools.
The process began on September 1st for the first stage when we introduced Wombat Improvement Proposals #5 and #6, initially centered around the Temperature Check. Following the successful passage of the Temperature Check, we proceeded to submit these proposals for the Consensus Check. Subsequently, with the invaluable assistance of the Wombat team, we launched a Snapshot vote. Thus far, the community’s response has been incredibly favorable, with resounding approval seen across the realms of Wombat, Wombex, and Magpie governance.
These proposals, expected to be approved by September 11th, are absolutely essential for the migration’s success. They will empower Horizon Protocol to incentivize liquidity providers on Wombat Exchange by offering valuable incentives via bribes.
But what exactly are bribes in Wombat Exchange?
Wombat Exchange incentivizes liquidity providers by distributing its native token WOM. Every week, the community decides the share of WOM emissions that will be directed to each liquidity pool. The larger the WOM distribution that goes to a certain pool, the larger the liquidity attracted to it.
Protocols that want to attract liquidity to their pools, can offer incentives to voters in the form of “bribes” through the Voting Gauge. These bribes are collected by the voters that use their voting power to direct WOM towards the pools of the protocol that offered the bribe. WOM emissions are later collected by the liquidity providers in proportion to their share of the pool.
Next Steps
After the proposals pass the Consensus Check on Sept 11th, the zUSD and zBNB pools will be added to the Voting Gauge and Horizon Protocol will be able to offer bribes in the form of HZN tokens.
Since each epoch starts on Wednesdays, it won’t be until Sept 13th that the first HZN bribe will be available at the Voting Gauge. And the gauge weight voted during that epoch will impact the following, starting September 20th.
Due to this reason, we will make adjustments to the previously proposed schedule. The pools will migrate to Wombat Exchange on September 20th, once the incentives are in place to attract liquidity providers. This modification aims to ensure a smooth transition for our stakers.
It’s important to note that also on Sep 20th, the incentive on PancakeSwap BUSD/zUSD pool will be discontinued. The Pancake pool will however remain open until it’s been cleared out.
We kindly encourage our stakers to consider removing their liquidity from the Pancake pool at their earliest convenience.
We will keep you updated with all the progress as we move forward with this exciting new chapter.
Please reach out to our community if you have any questions.
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.
