The Onomy Protocol is built on Cosmos, powering the Onomy Exchange to be over 100x more efficient than Ethereum and the current leading DEXs, including Uniswap, while carrying cross-chain benefits that Uniswap lacks. Initial compatible chains will be Ethereum and Cardano.
We look to build upon what Uniswap and other DEXs have accomplished by expanding reach into traditional markets, beginning with FOREX. As a comparison, cryptocurrency daily traded volume is $161 Billion at the time of this writing. The FOREX market of fiat currencies trades an astounding $6.6 Trillion in daily volume. As the gap closes further, crypto’s exponential rise will continue in conjunction with the rise of DEXs.
Onomy aims to introduce the DEX-approach for FOREX trades, leveraging pegged stablecoins as representations of fiat currencies to be used and traded. The stablecoins are collateralized with Onomy’s protocol token, NOM. This structure empowers NOM holders to issue and trade traditional currencies on modernized cross-border railways with instantaneous settlement.
In addition to collateral, NOM is Onomy’s governance token. NOM holders can vote on proposals in the Onomy Decentralized Autonomous Organization (DAO). As Onomy proceeds through launch and development, the Onomy core team’s responsibilities will shift entirely to the Onomy DAO for Onomy’s ongoing management. Onomy’s validators can influence protocol changes with votes weighted in proportion to the amount of NOM they hold. NOM is provided to validators through block rewards in exchange for staking to participate in network consensus.
We propose addressing Forex settlement risk and market fragmentation issues (Schrimpf & Sushko, 2019) through Onomy, a decentralized protocol that virtualizes major currencies around the world and provides for near-instantaneous settlement. Recent advances in decentralized protocols and proven implementations of a new class of virtual-assets named stable-coins have made this possible.
Onomy consists of three pillars designed to be a self-governed monetary stabilization system. 👇
⚡Onomy Network (ONET): A decentralized peer-to-peer computational network that processes transactions submitted by users and rewards operators in ONET’s native protocol coin NOM
⚡Onomy Reserve (ORES): governs minting of stabilized virtual currencies, called Denoms, utilizing NOM as collateral.
⚡Onomy Exchange (ONEX): a base-layer decentralized exchange that is used by Onomy participants to trade NOM and Denoms. ONEX is integrated with ORES to handle reserve accounts’ liquidations and rebalance collateral ratios during times of distress
NOM Token. NOM is the native token of the Onomy Protocol and is specifically used to secure the network through staking and serve as collateral for the minting of Denoms through the Onomy Reserve (ORES).
In short — transaction fees, bridge fees, rewards for helping to secure the network via PoS staking, governance, collateral, and multiple tie-ins within Onomy’s products.
Malleable: Ability to mint any denomination of a stablized virtual currency
Scarce: Pre-defined release into circulating supply and burning of supply
Durable: Secure decentralized system capable of self-stablizing from attacks
Verifiable: Anonymous accounts are publicly verifiable on the network
Fair: Transactions are ordered by which arrives at the most nodes first
The Onomy Network has a genesis supply of 100M NOM, distributed as such:
https://medium.com/@onomyprotocol