Introduction

The oracle-based system uses a peer-to-pool trading model that eliminates the need for counter-parties, enabling a capital-efficient and scalable trading experience. This model ensures traders benefit from low fees, deep liquidity, and zero slippage when engaging with synthetic assets.

The oracle-based system is powered by Horizon Protocol, a decentralized derivatives trading and liquidity protocol designed to provide seamless access to the real-world economy through synthetic assets, such as fiat currencies (USD, EUR, JPY) and commodities (gold, silver).

Key Features

• Diverse Asset Offering: Trade synthetic derivatives representing fiat currencies, commodities, and more.

• Low fee & zero spread: The peer-to-pool model ensures traders benefit from lowest fees, deep liquidity, and zero slippage when engaging with synthetic assets.

How Oracle-based System Works The Oracle-based system design revolves around its synthetic assets (zAssets), created and backed by its decentralized ecosystem. The system ensures efficient trading through a robust collateralization mechanism and a peer-to-pool model.

At the foundation of the system is zUSD, a synthetic stablecoin minted using HZN as collateral. zUSD acts as the primary medium of exchange within the protocol, enabling traders to open positions on a variety of synthetic assets (zAssets). This framework allows users to gain exposure to real-world assets and markets without needing direct ownership of the underlying assets.

Unlike traditional perpetual futures trading, which requires two counterparties (a long and a short), the oracle-based system operates a peer-to-pool model. In this model:

• The liquidity pool, backed by HZN collateral, serves as the counterparty for all trades.

• Traders interact directly with the protocol, eliminating the need for matching orders between individual users.

• This design provides deep liquidity and zero slippage, ensuring seamless execution even for large trades.

The ecosystem consists of three primary applications:

• Futures Exchange: A perpetual futures exchange offering leveraged trading with deep liquidity.

• Spot Exchange: A spot trading platform for synthetic assets with low fees and instant execution.

• Staking: A liquidity staking platform that rewards users for supporting the protocol’s liquidity.

Benefits of the Oracle-based system

• Low Fees & Deep Liquidity: The peer-to-pool model ensures cost-efficient trading with minimal slippage.

• Scalability & Integration: As a native BNB Chain protocol, Horizon Protocol benefits from seamless scaling and connectivity with other dApps.

• Innovative Derivatives: Access to a wide array of synthetic assets representing real-world markets, expanding trading opportunities for DeFi users.

Summary Oracle-based system transforms decentralized derivatives trading by offering a seamless, scalable, and efficient platform for accessing real-world assets. With its peer-to-pool model, comprehensive application suite, and integration with BNB Chain, it combines the advantages of decentralized trading with the innovation of synthetic derivatives.