Xpanse AMA Recap: Multi-Liquidity, AI Trading, HZN’s Future & More

Xpanse by Horizon Protocol
5 min readFeb 12, 2025

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We recently hosted an AMA to share exciting updates about the evolution of our ecosystem. While Horizon Protocol remains a foundational pillar, we’re expanding beyond it with Xpanse — a broader, more dynamic platform introducing new liquidity models, AI-driven trading, and enhanced revenue mechanisms to drive growth and sustainability.

For those who missed the live session, here are the key takeaways:

  • What is Xpanse? A look at how we’re expanding beyond Horizon Protocol
  • Revenue Generation: How Xpanse will create value for HZN holders
  • Buybacks, Burns & Treasury Management: Strengthening HZN’s future
  • Future Developments & Integrations: AI trading, new assets, and ecosystem growth

Now, let’s dive into the details.

Xpanse: What Is It and Why Is It Important?

Xpanse: An Expansion from Horizon Protocol
Xpanse is not a rebrand of Horizon Protocol — it’s an expansion. While Horizon Protocol began as an oracle-based system, we are now evolving into a triple-liquidity model that builds upon its foundation.

Xpanse integrates Horizon Protocol’s oracle services but extends beyond them by introducing new systems and an AI-driven trading application. The key takeaway? Horizon Protocol remains a core part of the ecosystem, particularly for oracle-based staking, but Xpanse serves as a user-facing platform for traders — designed to expand exposure, usability, and adoption across multiple chains.

Why the Shift to Xpanse?
The transition to Xpanse is driven by our focus on revenue generation and rapid user acquisition. Rather than dedicating excessive time to complex smart contract development, we are prioritizing front-end development and strategic partnerships. This allows us to integrate with existing infrastructure and leverage partners such as Symmio and Orderly for cross-chain liquidity.

Xpanse serves as a front-end trading platform that enhances accessibility while still being deeply connected to Horizon Protocol. The ultimate goal is to accelerate adoption, enhance trading capabilities, and create sustainable revenue streams.

How Will Xpanse Generate Revenue?

A key focus of Xpanse is ensuring sustainable revenue generation that benefits HZN holders and stakers. The existing oracle-based system remains unchanged, meaning that all revenue from Horizon Protocol’s staking mechanism continues to flow to HZN stakers. However, with the introduction of the intent-based trading system and order book model, new revenue streams will be unlocked. Under HIP-23, 40% of revenue from intent-based trading is proposed to go to HZN stakers, while another 40% will be allocated to buybacks and burns, reducing the circulating supply of HZN. The remaining portion will support marketing, treasury growth, and platform development to drive long-term expansion.

In addition to traditional trading revenue, Xpanse is introducing AI-driven trading solutions that will generate revenue through subscription-based services and real-time trade signals. We are currently exploring a monthly subscription fee model, where users pay for AI-generated trade signals by gaining access to view the signals on Xpanse and receive trade alerts via Telegram. Additional AI integrations are being considered to further expand our revenue potential.

Looking at comparable platforms, Symmio generated $1.37 million in fees from $5.5 billion in trade volume over the past year. Meanwhile, Orderly Network, which operates an order book model, sees daily revenues ranging from $840 to $16,000, depending on trading volume. While Xpanse is still in its early stages, these benchmarks illustrate the strong revenue potential of our expansion.

Buybacks, Burns & Treasury Management

Starting in March 2025, we will initiate weekly buybacks and burns to support HZN’s value. These buybacks will be executed on a fixed schedule, with full transparency so the community remains informed about each transaction. The proportion of revenue allocated to buybacks will be adjusted based on the global active C-Ratio. Once this number exceeds 350%, more revenue will be redirected toward stakers rather than buybacks, ensuring that HZN remains well-supported while also providing sustainable rewards to participants in the ecosystem.

In the rollout phase two, we are considering an allocation model where 30% of revenue goes to HZN stakers, 30% to buybacks and burns, 20% to the treasury, and 20% to trading incentives and marketing. This model balances immediate benefits to holders with long-term sustainability, ensuring we can both reward our community and continue to grow the platform.

Future Developments & Integrations

With the launch of Xpanse we will be introducing AI-powered trading competitions. These competitions will serve as a key driver for user engagement, allowing traders to test AI-generated strategies in a competitive environment while also increasing visibility for our platform.

Expanding to multiple chains is another top priority, with at least two new chain integrations expected soon. This will enable us to attract a wider audience and enhance liquidity, making Xpanse a more versatile and accessible trading platform. Our primary focus for the next few months will be on front-end development and strategic liquidity partnerships, ensuring a seamless user experience across different ecosystems.

In terms of new asset listings, we will continue adding assets to our oracle-based exchange as long as reliable oracles are available. Additionally, we are evaluating the future of spot trading within our ecosystem. Given the trend of platforms like Synthetix removing spot markets in favor of more efficient models, we are exploring whether a similar shift would be beneficial for Xpanse.

The zUSD depeg issue remains a challenge, but we are committed to addressing it through long-term funding solutions. The most effective way to restore and maintain the peg is by increasing overall revenue and zUSD demand, which will allow us to allocate additional resources toward stabilizing zUSD over time.

Final Thoughts: The Road Ahead

Xpanse represents a new era of growth and innovation for our ecosystem. With a strong emphasis on AI-driven trading, cross-chain expansion, and sustainable revenue generation, we are positioning ourselves for long-term success.

We appreciate the ongoing support from our community and are excited to share more updates in the coming weeks. Stay tuned for weekly buyback reports, new integrations, and exciting AI-driven trading features.

Xpanse is an AI-powered, multi-liquidity perpetual futures exchange designed to empower traders of all levels.

https://xpanse.trade/

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Xpanse by Horizon Protocol
Xpanse by Horizon Protocol

Written by Xpanse by Horizon Protocol

Transforming decentralized derivatives with AI strategies, dynamic liquidity layers, and a seamless experience built for every type of trader.

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