# Diving into the Onomy Protocol By [Anna Pond 🌸](https://paragraph.com/@klusya) · 2023-02-10 --- _Onomy Protocol is a Layer-1 ecosystem that offers the necessary infrastructure to converge traditional finance with decentralized finance._ ### Five pillars of Onomy Protocol The ecosystem is designed to be a self-governed monetary stabilizing system, built on five pillars that work together to provide a seamless experience for users. These pillars include: * **Onomy Network** The Onomy Network is an application-specific **Layer-1 blockchain** that leverages Tendermint BFT consensus, built with the Cosmos SDK. The network enables Onomy to provide a fast and secure environment for decentralized finance. * **Arc Bridge Hub** The Arc Bridge Hub powers **bi-directional bridges** to prominent blockchains, both within and outside of the Cosmos ecosystem. This allows Onomy to connect to other blockchains, such as IBC-enabled chains and Avalanche, Polygon, Moonbeam, and others, making it an interoperable platform. * **Onomy Exchange (ONEX)** The Onomy Exchange (ONEX) is a **decentralized exchange** that aims to replicate a traditional centralized exchange experience in a decentralized and non-custodial manner. It combines AMM liquidity pools with an Orderbook UI, enabling liquidity providers to earn yield and traders to engage in familiar orderbook trading strategies, including market, limit, stop, and conditional orders. The exchange is cross-chain and multi-chain, allowing users to trade native assets between blockchains or trade assets native to a specific blockchain. * **Onomy Access** Onomy Access is a non-custodial multi-chain **mobile wallet app** that allows users to manage all their assets from integrated blockchains. The wallet app includes features such as staking, governance, transferring assets, and viewing NFT collections from multiple blockchains, all on one singular wallet app. Onomy Access makes cross-chain and multi-chain user experience seamless, as users can connect to dApps by scanning a QR code, eliminating the need to connect various browser extensions to access Web3. * **Onomy Reserve** Onomy Reserve **governs the minting** of decentralized stablecoins called Denoms. The Onomy DAO votes on various parameters, including collateralization ratios, for the minting of Denoms, which may be used for Forex, payment, remittance, lending, and settlement. ### Tokenomics The **native coin** of Onomy Protocol is **$NOM**, which is used to secure the network through staking, as a collateral type for the minting of Denoms through the Onomy Reserve, for payment for transaction and bridge fees, and for governance in the Onomy DAO. NOM is heavily integrated into various products of the Onomy Ecosystem, such as the programmatic buy & burn utilizing AMM earnings from the Onomy Exchange. Staking is the process of delegating NOM to a validator, providing rewards in return for supporting the security and operations of the blockchain network. NOM holders can **earn rewards for staking** their NOM, helping to secure the network. ### Governance The Onomy Protocol is governed by the **Onomy DAO**, which is a Decentralized Autonomous Organization represented by rules encoded as a transparent computer program. The Onomy DAO provides NOM holders with the opportunity to **guide the decision-making process** through NOM-weighted votes. Examples of items the Onomy DAO vote on include network upgrades/parameter changes, exchange and other product features, choosing stablecoin collateral types, currencies, and collateralization ratios, liquidity deployment to the Onomy Exchange from the treasury, and treasury management. ### Check out Onomy Protocol content: * [Docs](https://docs.onomy.io/) - official documents and technical info * [Discord](https://discord.gg/onomy) - great way to connect with other Onomy users * [Twitter](https://twitter.com/OnomyProtocol) - to keep up with all the news * [Crew3](https://crew3.xyz/c/onomyprotocol/invite/A9kTx11J71_ZBkd9TMtlQ) - earn XP for engagement --- *Originally published on [Anna Pond 🌸](https://paragraph.com/@klusya/diving-into-the-onomy-protocol)*