We are excited to publish the White Paper for the Omni protocol today. The White Paper outlines the design and rationale behind the development of the Omni protocol and unveils many of the novel features introduced for lending protocols.

Read the full white paper here!

What Sets Omni Apart?

• Dynamic & Composable: Omni isn't just another lending protocol. It's dynamic, composable, and boasts best in class capital efficiency. It enables zero fragmentation, meaning users can seamlessly manage all their assets in one place without worrying out about yield loss or the same liquidity spread across multiple pools.

• Risk Tranches: Omni introduces a new concept of "risk tranches." Think of these as layers within an asset pool, where higher-risk tranches support the liquidity of lower-risk ones. It's a bit like a pyramid, where water from the top flows down to the layers below, ensuring optimal liquidity distribution.

• Flexible Oracles: Omni isn't tied to a single oracle. It supports multiple ones, like Chainlink and Band, but also offers the flexibility of custom oracles, ensuring accurate and timely price data, and faster ability to list new assets.

• Omni Interest Rate Model: The protocol uses a unique interest rate model influenced by both utilization and the risk tranche of the collateral asset. This ensures that interest rates are not just competitive but also reflective of the underlying risk.

• Gasless Subaccounts: Say goodbye to the complexities of managing multiple loan positions. Omni introduces a groundbreaking implementation for user subaccounts that's both gas-free and collision-free. Manage your loans with unprecedented ease!

The Omni protocol introduces a groundbreaking approach to decentralized lending, addressing many of the challenges faced by existing models. By leveraging a novel concept of "risk tranches," Omni ensures maximal capital efficiency and zero liquidity fragmentation. This allows lenders to tailor their risk profiles while ensuring borrowers have access to maximum liquidity.

Omni's architecture is designed to be dynamic, composable, and safer, accommodating all collateral types and borrow types. It offers unique features such as collision-free subaccounts for asset management, high-efficiency borrowing modes, and dynamic liquidations using dutch auctions. Furthermore, the protocol's risk management is both on-chain and off-chain, ensuring robustness and adaptability in the ever-evolving crypto landscape.

The Omni Protocol aims to push the decentralized lending space forward by offering a more inclusive, efficient, and fluid money market system. Its innovations aim to foster a more inclusive and efficient financial ecosystem, bridging the gap between traditional and decentralized finance.

Interested in diving deeper? We highly recommend reading the full Omni White Paper to get a comprehensive understanding of its potential and features.