Blockchain technology brings innovation to the forex market

Forex trading is one of the largest financial markets in the world, but it has long been plagued by numerous pain points. The application of blockchain technology is expected to bring significant improvements to this traditional market, enhancing user experience.

A project called Onomy is working to bring decentralized technology to the fragmented forex market. The project aims to manage and process transactions in this vast market by building a robust Blockchain infrastructure. Onomy recognizes that 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 striving to fill this market gap.

The Onomy network is a blockchain platform built on the Cosmos SDK, designed for decentralized applications. The project was co-founded by Lalo Bazzi and Charles Dusek in December 2020. Bazzi has experience working with Fidelity Investments and four years in the blockchain industry, providing strategic insights for the project. Dusek is a senior engineer with over ten years of professional experience in various fields, including finance and energy, contributing technical expertise to the team.

In November 2022, Onomy completed a financing round of $10 million, receiving support from multiple investment institutions. This round of financing reflects the industry's recognition of Onomy's vision and technological roadmap.

Onomy's features lie in 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 decentralized exchange and enhancing cross-chain liquidity.

Using the Inter-Blockchain Communication (IBC) protocol, Onomy can seamlessly connect with other blockchains in the Cosmos ecosystem. Its 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 Onomy, pay Arc bridging fees, and serve as collateral for stablecoin issuance.

The product system of Onomy includes the following key components:

1. ONET (Onomy Network): Based on the Cosmos ecosystem, utilizing Tendermint BFT consensus and IBC protocol. It rewards validators' contributions through NOM and enhances liquidity using Cosmos's multi-chain architecture.

2. ONEX (Onomy Exchange): A powerful cross-chain decentralized exchange that supports efficient cryptocurrency trading. ONEX integrates automated market makers (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 features 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, it manages Denom collateral and increases the total coin flow on the platform. This reserve supports debt curve issuance, ensuring stable and predictable operations.

Onomy manages Denom through ORES, bringing fiat-pegged stablecoins into the DeFi ecosystem. These Denom allow users to trade, lend, and mint stablecoins within the Onomy ecosystem, not limited to the US dollar but also including various stablecoins like the euro, pound, and yen.

The Onomy network maintains the value stability of its stablecoin through reserve ratios, minimum collateral ratios, and other control mechanisms to align it with fiat currencies. In addition, the Onomy protocol simplifies user access to NOM through debt curves and deterministic pricing, achieving a highly liquid market. This continuous token model replaces traditional token presale methods by constantly minting new tokens based on demand and algorithmic pricing.