How is Cross-Chain DeFi Achieved On Horizon Protocol?


Blockchain is designed as the technology to push the next generation of the internet. Yet, there are considerable difficulties to be surmounted in regards to scalability and interoperability. 

One portion of the solution is cross-chain technology. 

Here’s a glance at how cross-chain decentralized finance occurs on Horizon Protocol.

A Brief Overview of Horizon Protocol

Horizon Protocol is the latest DeFi platform that accelerates assets’ on-chain exchange reflecting the real economy. With Horizon Protocol’s smart contracts, you’ll have all the exposure to real-world assets risk or return profiles.

Forked from Synthetix, Horizon Protocol will maximize the derivative liquidity protocol, which continues to test repeatedly. It allows scalability, interoperability, and a new range of exchangeable, real-world derivative items to the decentralized finance network. 

Thanks to Horizon Protocol’s commitment to the Binance ecosystem and native functionality on Binance Smart Chain, users can now enjoy reliability and pace presently missing on the Ethereum Blockchain.

Roadmap To The Cross-Chain DeFi – Horizon Protocol’s Plan

Horizon Protocol plans to crack this using three main methods;

  1. HZN-backed Synthetic Assets

Elements of the real-world financial market transforming into crypto-economic components is nothing new. Most of the crypto veterans have witnessed enough of such. 

Digitizing the entire economic space might occur, shortly operating based on blockchain technologies, if the estimates are anything to go by.

If anything, that’s only a reminder that most people are after fiat currencies because of all the misconceptions in circulation about the volatility of cryptocurrencies. That in itself marked the starting point for the design of synthetic assets. 

A blend of assets that have identical value is what is called synthetic assets. With the help of synthetic assets, consolidated derivative instruments such as futures, swaps, or options represent the underlying asset. This asset can be silver, gold, real estate, or any other resource. 

  1. Exposure to Conventional Financial Exchanges

Horizon Protocol will not just be providing cross-chain crypto derivatives for both short and long positions; but will also concentrate on increasing exposure to conventional financial exchanges, including the following:

  1. Equities
  2. Commodities 
  3. Exchange indices
  4. Corporate assets
  5. Equity assets
  6. Physical assets

These asset classes represent a baseline for what Horizon Protocol is capable of providing. In the future, a DAO will decide the types of asset that will be offered on the platform. 

These offerings will rely on Oracles connected to the many markets they trade on in the real world. Horizon Protocol plans to use Chainlink, Band Protocol, and Phoenix Oracle in order to make these assets available on the blockchain.

3. Binance Smart Chain and Interoperability

The decision to launch Horizon Protocol on the Binance Smart Chain (BSC) seeks to address Ethereum’s present DeFi scalability issues. Horizon Protocol offers lower transaction fees, faster speeds, and access to the Binance ecosystem.

Horizon Protocol provides users with cross-chain operability in a smooth experience by utilizing blockchain bridges like Tendermint, PolyNetwork, Polkadot, and Cosmosthat promote interoperability with Binance Smart Chain, NEO Blockchain, and Ethereum Blockchain to name a few. The nature of synthetic assets also means that Horizon Protocol can provide a single-stop platform that gives users access to synthetic crypto assets and a range of real-world financial assets on the BSC with bridges to and from other blockchains as needed.

Wrapping It Up

With synthetic assets backed by HZN and BSC, Horizon Protocol aims to accomplish cross-chain DeFi on its platform. It ensures a safe and dependable experience that keeps up with the latest changes in the crypto world regarding DeFi and blockchains.You can learn more about Horizon Protocol on Twitter and Telegram here.

Shawn Du'Mmett

Shawn Du'Mmett

Former IT development and consultant, remote team and collaboration expert, PM, CCO, writer, dreamer, idealist looking to collaborate with global teams on a global teal/turquoise organisation. Shawn's dream is working together openly, to get what writers need and want, and to solve biggest global problems. He is building a collaboration system from the start that everyone can own and define, allowing them to work together, to decide how it works and to their highest ideals.

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