The Onomy Protocol is an impressive Layer-1 ecosystem that aims to bring Forex and decentralized finance together. It offers some amazing products like a cutting-edge multi-chain wallet, bridge hub, a DEX with an order book feel combined with AMM liquidity pools, and a stablecoin issuance protocol.

The Onomy Protocol comprises five key components designed to create a self-governed monetary stabilization system.

• The Onomy Network is a Layer 1 blockchain, built with the Cosmos SDK and using Tendermint BFT consensus, that is tailored for specific applications.

• The Arc Bridge Hub enables two-way connections to leading blockchains, both within and outside of the Cosmos ecosystem, such as IBC-enabled chains, Avalanche, Polygon, Moonbeam, and more.

• The Onomy Exchange (ONEX) offers a decentralized exchange platform that mimics the centralized exchange experience to handle the world’s high-volume trades in a non-custodial and decentralized manner. ONEX combines AMM liquidity pools with an order book UI and supports various trading strategies, including market, limit, stop, and conditional orders. ONEX is both cross-chain and multi-chain.

• With the help of Onomy Access and the Onomy bridge network, users can trade native assets between blockchains or trade assets native to a single blockchain. Onomy Access is a non-custodial multi-chain mobile wallet app that lets users manage assets from multiple integrated blockchains, including staking, governance, transferring assets, and viewing NFT collections. Connect to dApps by scanning a QR code for a seamless cross-chain and multi-chain experience.

• The Onomy Reserve governs the minting of decentralized stablecoins named Denoms, which can be used for Forex, payments, remittances, lending, and settlement. The Onomy DAO votes on parameters like collateralization ratios.

  Token Utilities

  The NOM token is the native coin of Onomy Protocol and offers a variety of benefits within its ecosystem of applications

• Staking: By delegating their NOM to a validator, holders can participate in staking and receive rewards for supporting the security and operations of the blockchain network.

• Governance: The Onomy DAO, a decentralized autonomous organization, allows NOM holders to influence the direction of Onomy through weighted voting. This unique setup includes a DAO Wallet to hold the protocol’s treasury funds and give NOM holders meaningful participation in its management.

• Collateral: NOM can be locked into the Onomy Reserve to easily mint Denoms, a stablecoin pegged to major currencies. Bridge Fees: Transactions on the Arc Bridge Hub require payment in NOM.

• Buy & Burn from AMM Earnings: The Onomy Exchange uses its AMM earnings to pay liquidity providers and programmatically purchase and burn NOM from the supply, incentivizing users to execute this function through rewards.

  First published on my medium:

  https://medium.com/@ratedrr/few-words-on-onomy-protocol-5157b3619b08