Onomy: A New Attempt to Build a Cross-Chain Decentralization Forex Market

The combination of blockchain technology and the forex market is bringing innovative solutions to traditional forex trading, promising to significantly improve the user trading experience. Against this backdrop, Onomy is committed to introducing decentralization technology into the fragmented and traditional forex market, managing and processing the transactions of this vast market through its powerful blockchain infrastructure. Onomy recognizes that digital currencies (such as stablecoins) can effectively address many challenges faced by fiat currency exchanges. However, at present, fiat currency holders find it difficult to directly access stablecoins, and Onomy is working to fill this market gap.

Onomy's Financing and Technical Foundation

The Onomy network is a blockchain platform built on CosmosSDK, specifically designed for decentralized applications. The project was co-founded in December 2020 by Lalo Bazzi and Charles Dusek. Bazzi brings experience from Fidelity Investments and four years in the blockchain field, providing strategic insights to the project. Dusek is an experienced engineer with over ten years of work experience in various fields including finance, energy, and machine learning, providing strong technical support to the team.

In November 2022, Onomy completed a $10 million funding round, gaining support from several well-known investment institutions. This round of financing demonstrated the industry's broad recognition of Onomy's vision and technological roadmap.

Onomy's cross-chain staking financial system

Onomy is known for its open, permissionless features and high interoperability, supporting cross-chain token minting, trading, and stablecoin lending. Its EntangleMint bridging technology facilitates cross-chain stablecoin trading, acting as a decentralized exchange and enhancing cross-chain liquidity.

Through the cross-chain communication (IBC) protocol, Onomy can seamlessly connect with other blockchains in the Cosmos ecosystem. Arc Hub serves as a central integration point, facilitating interoperability between different blockchain ecosystems and ensuring a unified user experience. The core of the Onomy network is its native token NOM, which secures the network through a proof-of-stake consensus mechanism. NOM holders can earn staking rewards through delegation or validation, enjoy governance rights within the Onomy ecosystem, pay Arc bridging fees, and serve as collateral for stablecoin issuance.

Onomy's Product System

1. ONET (Onomy Network): Operates within the Cosmos ecosystem, utilizing Tendermint BFT consensus and the IBC protocol. It serves as a robust P2P protocol to validate transactions and rewards validators for their contributions through NOM.

2. ONEX (Onomy Exchange): A powerful cross-chain decentralized exchange that supports efficient and liquid cryptocurrency trading. ONEX integrates automated market maker (AMM) and order book methods, facilitating stablecoin trading pegged to major fiat currencies.

3. Onomy Access: A non-custodial multi-currency wallet that integrates the functionalities of specific tokens, such as staking and governance. Users can access DeFi opportunities through a single QR login, without the need for multiple wallets or browser extensions.

4. ORES (Onomy Reserve): As the reserve bank of the Onomy protocol, ORES manages Denom collateral, increasing the total currency flow on the platform. This reserve further supports the issuance of the debt curve, ensuring stable and predictable operations.

Onomy's Stablecoin Products and Pegging Mechanism

Onomy manages Denom through ORES, introducing fiat-pegged stablecoins into the DeFi ecosystem. These Denoms enable users to trade, lend, and mint stablecoins within the Onomy ecosystem, expanding a stablecoin economy that includes not only USD variants but also EUR, GBP, and JPY.

The Onomy network maintains the value stability of its stablecoin through reserve ratios, minimum collateral ratios, and other control mechanisms, aligning it with fiat currencies. Additionally, the Onomy protocol simplifies user access to $NOM through a debt curve issuance, achieved via deterministic pricing and a highly liquid market. This continuous token model replaces traditional token pre-sale methods by continuously minting new tokens based on demand and algorithmic pricing.

Through this series of innovations, Onomy is working to build a more efficient, transparent, and decentralized forex trading ecosystem, bringing new possibilities to traditional financial markets.