Onomy: A New Attempt to Build a Decentralized Forex Market

The combination of blockchain technology and the forex market is becoming a highly关注 field. This integration is expected to address many issues present in the traditional forex market, providing users with a better trading experience.

In this context, the Onomy project is dedicated to introducing decentralization technology into the fragmented and traditional forex market. By building a robust blockchain infrastructure, Onomy aims to manage and process all transactions in this vast market. The project recognizes that leveraging digital currencies such as stablecoins can effectively address the challenges faced by fiat currency exchanges. However, currently, fiat currency holders find it difficult to directly access stablecoins, and Onomy is working to fill this market gap.

Onomy Network is a foundational blockchain built on the Cosmos SDK, designed specifically for Decentralization applications. The project was established in December 2020, co-founded by Lalo Bazzi and Charles Dusek. Bazzi has a background working with Fidelity Investments and four years of experience in the blockchain field, bringing strategic insights to the project. Dusek is an engineer with over ten years of experience in finance, energy, machine learning, private equity, and consensus systems, providing technical expertise to the team.

In November 2022, Onomy successfully completed a $10 million financing round, receiving support from several well-known investment institutions. This round of financing demonstrates the industry's broad recognition of Onomy's vision and technological roadmap, even though there was no specific lead investor.

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

Using the Inter-Blockchain 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 by delegating or validating, enjoy governance rights within Onomy, pay Arc bridge fees, and serve as collateral for stablecoin issuance.

Onomy's product system includes the following key components:

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

2. ONEX (Onomy Exchange): A powerful cross-chain DEX that supports efficient and liquid cryptocurrency trading. ONEX integrates AMM and order book methods to facilitate trading of stablecoins 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 coin flow on the platform. This reserve further supports debt curve issuance, ensuring stable and predictable operations.

Onomy manages Denom through ORES, bringing fiat-priced 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 dollar variants but also euros, pounds, and yen.

The Onomy network maintains the value stability of its stablecoin through reserve ratios, minimum collateral ratios, and other control mechanisms, keeping it aligned with fiat currency. 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.