Onomy Protocol is a growing, DAO-governed ecosystem enabling the Internet Financial System (IFS) that blends DeFi with seamless consumer applications across social and Identity. It is the second provider chain in all of Cosmos, after the Cosmos Hub, and is interoperable with both IBC and EVM ecosystems. Onomy is poised to be the onboarding ramp to mainstream entry into crypto at large through a vibrant ecosystem of products on desktop and mobile, with the $6.6T/Day Forex leading the helm as an on-ramp through local currencies.
The Onomy Exchange (ONEX)
Hybrid DEXs are the next step to creating truly on-chain and fair markets. They are DEXs that retain the crypto primitives of decentralized and permissionless asset trading while adding features found on centralized exchanges to bring a truly streamlined user experience.
For the average retail user, centralized exchanges are streamlined, hand-holding experiences that let you trade lots of different tokens quickly and easily, while having a user-friendly UI that just begs you to click the buttons. A good market needs deep liquidity, and entities like Binance have – despite crypto diehards gnashing their teeth at the thought – done wonders for crypto’s acceptance into mainstream retail trading.
Yet there is a problem. One so acute it’s been dialed in as a mantra among those in the know. Not your keys, not your crypto. When trading on a CEX, you don’t retain true control over the crypto: the centralized provider does. All you own are ownership rights that give you a claim to those tokens.
The answer is obvious. Big DEXs need CEX energy to function. In the battle between AMMs and order book systems – the answer is both. This is where Hybrid DEXs come in.
An AMM has fantastic crypto primitives, is governed by smart-contracts, incentivises liquidity though LP tokens, has permissionless exchange, and every token (on the compatible chain) is available. This is why they are popular. Order books have ease-of-use, traditional trading functions, better charting/data, and sleek UIs. The key is to combine the two, and that’s what a Hybrid DEX is: an orderbook system on a decentralized exchange. A DEX that retains all the essential elements of decentralization, but offers the functionality akin to that of a centralized order book exchange.
Onomy’s Hybrid DEX overlays an orderbook on top of the AMM, as well as built-in bridges for native cross-chain trading across EVM, non-EVM, and IBC-enabled chains. With the orderbook, users can buy and sell cross-chain just like they would on a normal CEX, using limit, stop, market and take profit orders. Except with Onomy, there are zero static fees for doing so like the ones found on strictly AMM DEXs averaging 0.3% of the trade, making trades more capital efficient. The only fee is a tiny gas fee – far lower than Ethereum’s, and magnitudes lower than a CEX – that is paid with the $NOM coin.
This order book gives you the CEX experience on-chain. You can create a string of buy and sell orders and let your strategy unfold without ever having to surrender your crypto to someone else. The Onomy Exchange has TradingView built directly into the product so you can analyze, observe, then execute – just like you can on a CEX.
When you buy on a CEX, market makers providing liquidity on both ends of the trade capture the difference between the bid (buying) price and the ask (selling) price as profit. On Onomy’s Hybrid DEX, it’s the underlying AMM that acts as the market maker, so the spread is automatically sent to LPs based on their pool ownership.
The Onomy Reserve (ORES)
A global decentralized reserve bank acts as the ultimate trustless agent that could allow for the supranational effects of the actions of central banks like the Federal Reserve and the Bank of England to be put in the hands of the global crypto economy and unlatched from the nation states that power them. Run by a decentralized organization that can’t change the systems underpinning the bank at a whim.
When launched, the Onomy Reserve will feature:
- Multi-currency support (USD, EUR, YEN, etc.)
- Integrate NOM into a multi-stablecoin right-to-mint model
- Enable a denomination staking rate to ensure appropriate capital inflows and outflows
- Minimum Collateralization Ratio dictates maximum amount of denoms minted
- Reserve Capture Ratio dictates capture of NOM by reserve
- Reserve Burning Ratio dictates ratio of captured NOM that is burned to that which is held by reserve
- Closed loop, no outside oracles; the Onomy Exchange provides pricing data via its FX markets
- All parameters voted on by the Onomy DAO of NOM token holders
The NOM Coin
NOM is Onomy Protocol’s native coin that provides users with significant utility across Onomy Network’s ecosystem of applications. NOM was launched on mainnet in November 2022, and has since been listed on multiple centralized and decentralized exchanges, including Osmosis.
Staking
When NOM holders delegate their NOM to a validator, they are staking. Staking provides rewards in return for delegating to validators who support the security and operations of a blockchain network. Read more about NOM staking rewards.
Governance
Onomy is governed by the Onomy DAO, providing NOM holders with the opportunity to guide the decision-making process through NOM-weighed votes. Community members are encouraged to contribute to the DAO, and can be incentivised through funding proposals, with the on-chain treasury controlled solely by the DAO, with no multi-sig.
Buy & Burn from AMM Earnings
AMM earnings are used in two ways. Firstly, to pay the respective portion of AMM earnings to liquidity providers. Second, to programmatically purchase NOM and then burn the purchased NOM from the supply. This is done with no management by any central party, nor the DAO.
This functionality is incentivized by providing a programmatic reward to any user who executes the buy and burn function – thus decentralizing this action and creating a competitive market amongst users to execute the function to receive the reward.
Stablecoin Issuance
NOM grants holders the right to mint decentralized stablecoins pegged to the value of national currencies, enabling FX trading, remittance, payments, lending, and much more.
Validators
Validators support The Onomy Network (ONET), a layer-1 blockchain built with Cosmos SDK / Tendermint BFT proof-of-stake (PoS). To optimize network-wide performance, maintain decentralization, and ensure security, the Onomy Validator Guild maintains a high standard in operational performance and sustainability for the bettermint of Onomy Protocol.
Onomy is currently secured by the leading validators within Cosmos, inclusive of Cosmostation, Chorus One, and Citadel One.
Becoming a validator is permissionless, and it entails obtaining the minimum self-bond requirement of 225K NOM, followed by creating a validator, registering a validator profile, and broadcasting the necessary transactions.
The hardware used to run the validator should match or exceed the following criteria:
- 16 core, 32GB of RAM, 500GB enterprise SSD
- 1+ GBPS dedicated internet connection
After 3+ years of architecture design, iterations, and consistent development, Onomy’s flagship products are coming to mainnet.
