Onomy Protocol’s hybrid DEX and Forex marketplace comes to NEAR via Aurora

Onomy Protocol is proceeding with its plan of converging Forex and DeFi markets, announcing a collaboration with NEAR and Aurora.

Through the use of stablecoins, Onomy plans to empower institutions to onboard their fiat exchange operations on-chain and, further down the adoption line, serve as the world’s decentralized reserve bank.

In line with this ambitious agenda, the protocol’s robust infrastructure is built for rapid cross-chain expansion: Onomy’s application-specific Layer 1 blockchain, which is built with Cosmos Tendermint, powers a hybrid DEX and Forex marketplace, a stablecoin minting system, and a non-custodial wallet.

Robust cross-chain infrastructure

According to a recent announcement, NEAR’s community will be able to choose between trading crypto pairs and FX markets–enabled by Onomy’s stablecoins.

📢 We are excited to be partnering with @NEARProtocol & @AuroraIsNear!

Our alliance will see a multi-chain launch of the Onomy DEX with AMM LPs & an order book for market, limit, and stop orders, alongside our Forex marketplace.

Stay tuned for more! 👀https://t.co/1H1MDfP7F2

— Onomy Protocol (@OnomyProtocol) January 17, 2022

The collaboration will deliver inter-chain bridges between Onomy Protocol’s mainnet and NEAR Protocol–leveraging Aurora’s Ethereum Virtual Machine (EVM) capabilities.

Aurora is a bridge and EVM scaling solution for Ethereum built on NEAR.

While Onomy’s Cosmos-based blockchain, dubbed ‘ONET,’ is poised for high throughput and efficiency, Inter-Blockchain Communication Protocol (IBC), as well as custom bi-directional bridges to other major chains, starting with NEAR, will enable frictionless cross-chain swaps.

In addition to NEAR and Avalanche, Onomy Protocol will bridge with multiple other partner ecosystems facilitating seamless trading of native assets. 

Onomy’s multi-chain DEX, dubbed ‘ONEX’ utilizes a hybrid automated market maker (AMM) and decentralized order book model.

While facilitating simple cross-chain trading between the crypto assets and Forex pairs, Onex allows traders to place market, limit, stop, and conditional orders, and enables Liquidity Providers (LPs) to earn yield from contributing to the AMM.

According to the announcement, Onomy’s fiat-pegged denominations, called ‘Denoms’ will soon become usable within NEAR-based dapps.

Reserve and access for high-frequency Forex trading on-chain

Denoms, issued by the Onomy reserves dubbed ‘ORES,’ are the protocol’s solution for plugging Forex into the vibrant blockchain economy.

By locking the protocol’s utility token NOM, as over-collateral, users are able to mint Denoms of fiat currencies they require to execute their trades–like the Japanese Yen, Swiss Francs, Euro, etc.

The protocol’s utility token NOM plays a central role in the Onomy ecosystem and unlocks governance rights within the Onomy DAO.

Besides being used as collateral towards the minting of Denoms, ONET validators are required to stake or delegate NOM for securing the network and obtaining rewards.

By over-collateralizing each stablecoin minted and with the help of peg mechanisms operating in the background, Onomy is set to migrate Forex trading on-chain–opening the floodgates for $6.6 trillion daily volume traded across the foreign exchange markets.

However, Denom usage is not limited to Forex trading. As Onomy expands into further ecosystems, the protocol expects that Denoms could become a standard part of diversified portfolios.

Besides being utilized as a means of peer-to-peer payment, being chain agnostic, Denoms have the potential to unlock yield opportunities across DeFi.

The protocol’s mobile wallet is another key product that aligns with Onomy’s agenda to further DeFi connectivity by simplifying entering and exiting different ecosystems.

Onomy Access, or ‘OACC,’ is designed to allow users to seamlessly manage, send, and receive assets cross-chain, while interacting with staking and governance processes.

Furthermore, the non-custodial wallet comes coupled with an NFT collection sub-feature, facilitating managing NFTs from multiple blockchains.

Disclaimer: CryptoSlate holds a financial position in Onomy and was given the opportunity to participate in the presale of this project in exchange for news, analysis, and other types of coverage. CryptoSlate was NOT paid to publish this article.