Messari: Horizon as one of the new generation DeFi protocols
In the newest research report by Messari.io Trading Future Yield, Now (By Rasheed Saleuddin), Horizon Finance was introduced as among the new generation DeFi protocols. With the continuous evolvement and development of DeFi, protocols like Horizon Finance are bringing value-added proposition to the popular new concepts of TradFi.
As a protocol specialized in Interest Rate Market, Horizon Finance offers new values and innovation to TradFi, bringing floating and fixed decomposition of yields in an unique way.
Here are some quotes from the report:
I. “Protocols hope that, like splitting the atom releases energy, splitting an asset in two and selling each to a very different investor base will be a value-added proposition for DeFi. Barnbridge SMART Yield, 88mph, Pendle, APWine, Element and Swivel are focused on decomposing — stripping or splitting in TradFi parlance — yield tokens into
- a fixed rate asset
- a “floating” yield token, floating rate bond, or tranche.
Other protocols covered here, Horizon and SwapRate, also involve fixed and floating decompositions, each in its unique way.”
II. “Horizon offers a complicated game of “guess the fixed rate”, and so qualifies as a yield derivative of sorts. Every period, the yield farm return is observed and paid to those in order of the threshold fixed rate bid provided in advance. A low fixed rate would be filled but a very high one might not be filled or only partially filled, resulting in a low (or zero) rate for that period. A bid at a floating rate would receive the residual after all fixed rates were paid out. This market therefore establishes expectations of future yield farm rates.”
For more details, you can read the original report here:
Check Horizon Finance product here:
About Horizon Finance
Decentralized Interest Rate Market Protocol — Horizon Finance allows participants to swap between floating and fixed interest rates, enabling both speculation and risk management of their stablecoin portfolio and yield generating farms.
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