Fiat currencies have long been a great way to transfer value, but in the face of the digital revolution, they are starting to become obsolete. After all, it is difficult and expensive to move fiat money across borders. Furthermore, they cannot easily interface with blockchain-based protocols and are not the most transparent when it comes to supply.
On the other hand, stablecoins can solve all these challenges, but not easily accessible to fiat holders.
Onomy Protocol is designed to bridge the gap between fiat and stablecoin worlds through an ecosystem of blockchain-based products, including stablecoin issuance protocol, native blockchain network, decentralized exchange (DEX) , cross-chain bridge and wallet solution.
What is Onomy Protocol?
Onomy Protocol is building a multi-chain DEX designed to provide a common interface between traditional finance and decentralized finance (DeFi).
The platform aims to break the strong dependency that is forming around Ethereum’s DeFi ecosystem, by allowing users of every major chain that supports smart contracts to potentially access the same suite of assets. product.
With this, Onomy is set to provide truly integrated on-ramps for DeFi across all blockchains, moving away from today’s short-sighted approach to ensuring both individual and business users can maximize the liquidity of assets without worrying about individual chains.
By building a bridge between Forex/CeFi and DeFi, Onomy hopes to unlock the $6.6 trillion daily forex trading industry – helping to increase liquidity in the DeFi market while providing a pathway to entry. Simple for those who want exposure to digital assets without volatility. Along with this, Onomy is developing a custom bridging hub that allows users to seamlessly transfer assets between supported chains.
What is Token Onomy Protocol (NOM)?
The platform’s native utility and governance token is NOM, which is used for various purposes by Onomy, such as collateral to mint stablecoins, secure the network, and receive revenue from exchange fees. In addition, it is also used for administrative purposes.
Who founded Onomy Protocol (NOM)?
Onomy was co-founded by Lalo Bazzi and Charles Dusek in December 2020. Bazzi is a former associate at Fidelity Investments and former Microsoft cloud solutions strategist with nearly four years of experience in the blockchain space. On the other hand, Dusek is a accomplished engineer with over a decade of experience working in energy finance, private equity, machine learning and consensus systems. Together they develop mining hardware, use ASIC chips, and establish a global network of infrastructure partners.
Team Onomy currently has more than 20 people, including developers, designers, researchers and marketing experts.
How does Onomy Protocol work?
Onomy Protocol’s application-specific blockchain operates on Cosmos. Cosmos is considered by many to be one of the most advanced blockchain platforms available today with 100 times the efficiency of Ethereum, high throughput, and an active inter-blockchain communication (IBC) protocol.
The platform provides easy-to-use rails for moving fiat into the crypto world through crypto-collateralized stablecoins known as Denominations (or Denoms). They are issued by the Onomy Reserve (ORES) and can be used for transactions, loans, and payments. At the same time, Denoms can move freely in and out of the Onomy ecosystem, thus opening up new opportunities that are unmatched in the traditional financial world.
Denoms can be pegged to the value of any major fiat currency, e.g. euro (EUR), US dollar (USD), British pound (GBP), Japanese yen (YEN)… expanding the stablecoin economy beyond the well-known US dollar variations. This is the first time that only one collateral, NOM, can be used to directly mint stablecoins pegged to multiple fiat currencies.
To ensure Denoms maintain a stable value, Onomy uses control mechanisms, such as maintaining a minimum collateralized rate and using reserve ratios to inflate/deflate the currency to achieve par value. with the relevant fiat currency.
Denoms can be traded on Onomy exchange (ONEX) along with many other crypto assets and the platform’s utility token – NOM. They are also migrated across chains as the Onomy bridge moves towards integrating several prominent blockchain networks such as Cosmos, Ethereum, Avalanche, Cardano, and others.
To help deliver the ultimate user experience, Onomy has developed a new technology called “Natural Rights”. This technology uses proxy re-encoding to simplify private key management through authorized devices and enables QR single sign-on when managing multiple keys. With Natural Rights, users have full control over their assets, but don’t need to maintain multiple wallets for each individual chain – greatly improving the user experience.
Onomy Reserve (ORES) and Onomy Exchange (ONEX) operate on the Onomy Network (ONET). ONET is used to process transactions. As a result, the value transfer process is fast, secure, and perhaps most importantly, irreversible. While ONET is currently built with Tendermint in mind, Onomy will later introduce Equity, a Byzantine fault-tolerant consensus protocol that fairly orders all transactions over the network, preventing pre-running while allowing the network to support high frequency trading. ONET is network of security validators. Each validator must bind a fixed minimum amount of NOM directly or through a trust in order to participate in the network consensus. NOM validators and stakers are incentivized as inflation rewards.
As of August 2021, Onomy is in the early stages of its development roadmap. The current roadmap (as outlined in the Onomy Litepaper) indicates that the first versions of the following initial products will be introduced by the end of Q4 2021:
- Mainnet of Onomy Network
- Onomy Bonding Curve Platform
- Onomy Exchange
- Onomy Wallet
- Onomy Bridge Hub
Onomy also plans to conduct a public sale of NOM tokens through a unique Bonding Curve Offering (BCO) using an audited smart contract deployed on the Ethereum chain. Unlike traditional token sale models, BCOs operate as Automated Market Makers (AMMs) contracts that automate the relationship between pricing and supply, providing a pre-determined, liquid price. Instantly and incentivize the connection of purchased tokens with Onomy’s mainnet in a 1:1 ratio. The specific date has yet to be revealed.
What makes the Onomy protocol unique?
Onomy aims to have all the world’s currencies on-chain. As seen with USD stablecoins growing by over $100 billion between August 2020 and August 2021, the transition from traditional to decentralized finance is not only inevitable, but going to happen. This presents an opportunity to expand beyond the US dollar and bring traditional forex exchanges on-chain. In addition, interoperability between many prominent blockchain economies is said to be one of the prerequisites for unlocking worldwide financial inclusion and opening up the world’s liquidity to the new financial model. .
To this end, Onomy incorporates a number of unique features designed to enhance the DeFi experience, bootstrap liquidity, and incentivize participants. Some of the key distinguishing factors of Onomy include:
Onomy introduces a new type of stablecoin, called Denoms. They take advantage of all the best parts of fiat money (value, stable utility, recognition) combined with the superior functionality of digital money (crypto-secure, tamper-proof, and non-tamperable). border).
In short, Denoms provides a more efficient way to trade a variety of stablecoin denominations, while opening new lines of utility through the burgeoning DeFi sector.
Onomy leverages many new technologies to provide a consistent user experience regardless of which blockchain they choose. This ensures users can mint Denoms on Onomy’s native chain, while trading and operating liquidity from multiple blockchains to provide an ideal experience for ONEX users.
Further developed for Onomy Exchange, the DEX uses a model that combines both order book and AMM functions. This unlocks other functions, once exclusive to traditional centralized exchanges, like stop-loss orders, limit orders, and advanced charting. Onomy’s exchange will support cross-chain trading for stablecoin Denoms, NOM tokens, and other cryptocurrencies.
Sign in only once
Managing private keys and using decentralized applications (DApps) on multiple blockchains can be challenging, as users often have to operate multiple wallets and carefully manage how and when to log in. many different applications. Onomy eliminates this shortcoming through a custody-free single sign-on private key management solution called Natural Rights. Accordingly, users can login with QR to addresses on multiple blockchains.
The integrity of the PoS blockchain running on Onomy’s Cosmos is maintained by a network of decentralized validators. They are encouraged to act honestly through the NOM reward system and punished for not fulfilling their obligations. Individual users can contribute to the validation process by delegating their NOM to a validator of their choice, to receive an incentive. Additional staking mechanisms will also be implemented for both Denoms and NOM tokens.
Onomy Protocol will be governed by NOM holders as a decentralized autonomous organization (DAO). These holders can weigh their opinions and contribute to important decisions that help develop the Onomy ecosystem by initiating and voting on governance proposals.
According to Coinmarketcap
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