Horizon Protocol is a DeFi platform that facilitates the on-chain trading of synthetic assets representing the real economy. Horizon Protocol seeks to expose real-world assets risk/return profiles via smart contracts on the blockchain. Let’s analyze the technology stack they seek to use.
Binance Smart Chain & Horizon Protocol
The Binance Chain community propelled Binance Smart Chain (BSC) in time for the decentralized finance (DeFi) revolution, just when the public began showing increased attention to alternative financial resolutions supported by blockchain.
Since then, the BSC has already supported many successful projects and has grown to be one of the most well-known DeFi platforms to date. The rise of the BSC is one of the greatest crypto success stories as of recent.
With BSC’s launch, DeFi projects and the more consequential blockchain community can work on the many benefits Binance Chain offers, strengthened by smart contract provision, cross-chain interoperability, and more services that BSC delivers. The Binance Chain and Smart Chain community have consistently welcomed all the dApp projects and developers to venture into this new field.
Some advantages Horizon Protocol users can expect
- A prosperous and developing digital asset network
- Reduced transaction fees that end as low as 1 cent
- Powerful speed and scalability
- Cross-chain DeFi tools that enhance DeFi interoperability
- A supportive Binance network that stores and bootstraps numerous DeFi projects
- A burgeoning network of millions of users all over Binance DEX and Binance.com
Pancake Swap & Horizon Protocol
PancakeSwap is a decentralized exchange that lets you purchase tokens and cryptocurrencies without a centralized go-between, maintaining charge of your funds at all times. It develops on an automated smart contract extended on Binance Smart Chain.
PancakeSwap leaves out the agents of centralized markets, allowing other users to collect the compensations instead. If you are ready to secure your tokens for some time, the rewards can be very abundant, especially with some staking claims and liquidity pools. The current APY for HZN-BNB on Pancakeswap ~70% whilst the HZN-BNB LP pool on Horizon Staker is at ~120%.
When you trade on Horizon Protocol, you receive these benefits automatically.
UniSwap & Horizon Protocol
UniSwap is A fully decentralized protocol for automated liquidity provision on Ethereum. With Horizon Protocol electing to choose Binance Smart Chain as its origin blockchain, it accommodates cross-chain interoperability options for all users. Horizon Protocol intends to facilitate a UniSwap pool in order to bridge the Ethereum blockchain.
Chainlink Protocol & Horizon Protocol
Horizon Protocol is leveraging Chainlink Protocol which is one of many Oracles. It is a decentralized Oracle network that allows real-world information to smart contracts on the blockchain.
Smart contracts are records on the blockchain defined as sealed systems with rule-based methods for coupling to outside data sources. Smart contracts research data and automatically work when some requirements are satisfied. LINK tokens are the digital asset token employed to render payment for services on this network.
Chainlink Protocol is essentially a connection between the outside world and the realm of Horizon Protocol.
Band Protocol & Horizon Protocol
Band Protocol is another mainstream Oracle that Horizon Protocol is applying for its platform. In a world where data is essential, blockchain Oracles such as Band decide by giving correct information to smart contracts and decentralized apps.
It works similarly with Horizon Protocol as all the other Oracles. It enhances the accessibility and safety of data.
Phoenix Oracle & Horizon Protocol
Phoenix Protocol is a strategic partner of Horizon Protocol. Phoenix Oracle provides price feed of proprietary data. Retail investors will have exposure to stocks, non-US market indices, and physical assets like real estate and artwork.
Phoenix Oracle is specialized in providing on-chain price feed directly from tangible assets. Node operators validate real time price feeds using the PHB utility token.
Current holders of Phoenix Global are able to stake PHB tokens on Horizon Protocol and receive HZN tokens as a reward.
Conclusion
Horizon Protocol facilitates the creation of synthetic assets that represent the real-world economy, synthetic crypto assets of various blockchains, and innovative asset classes (such as fractionalized NFTs). In order to achieve this vision and solve present problems with the Ethereum blockchain it chooses Binance Smart Chain as a base. Horizon Protocol has carefully selected the technology stack that it will use in order to strengthen its system, the blockchain bridges aiming to be blockchain agnostic, and the oracle partners providing the price feeds for synthetic assets.
We look forward to seeing the options Horizon Protocol expands into when the platform matures and their adoption in the BSC ecosystem as the first-mover of synthetic asset creation in the BSC community.
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