Onomy Exchange (ONEX)
The Onomy Exchange (ONEX) is a cross-chain and multi-chain hybrid decentralized exchange (DEX), with a technical architecture that converges Automated Market Maker (AMM) liquidity pools with an orderbook UI, thus creating a powerful, fair, and non-custodial approach to decentralized trading that supports stop losses, limit orders, conditional orders and advanced charting.
Whilst the AMM interface works by swapping one asset in the liquidity pool for its correspondent, the ONEX will also allow for order book functionalities, like limit orders, where users attempt to purchase or sell an asset at the best possible price, rather than at a set threshold offered by the exchange. Another function not found on most DEXes is the ability to place a stop loss. This is a long anticipated feature within the trading community as it allows a user to prevent unexpected losses from outstanding overnight positions.
From a technical standpoint, whenever there is a token swap request, the ONEX will first process limit and stop orders placed into the order books. Each limit or stop order execution is processed by the AMM liquidity pool, consequently moving the price while filling the order. The AMM will only fill trades that are introduced within the spread of the order books while charging the ends of the spread to gain a profit for LPs. After the swap is completed and finality is reached, the AMM exchange rate will be settled at the designated price. This leads to having the ONEX set the exchange rate dynamically based on market demand, adhering to the basic principles of pricing set forth by the laws of supply and demand.
Onomy’s ONEX is features a significantly improved user experience, where one may seamlessly engage in crypto & Forex trading and retain asset control through non-custodial private key management, while also reaping the more advanced trading functionalities provided by centralized exchanges, like limit orders, stop loss orders, and advanced charting. This also helps bridge the gap between the largest market in the world, foreign currency exchange, and the realm of virtual currencies and DeFi. Some would argue that all currencies are now digital, and this is for the most part correct. However, today's forex market lacks the guarantees provided by virtual currencies, such as transparency, verifiability, accessibility, riskless settlement, price discovery, and the codification of transfer. Combining the two gives the ability to address inefficiencies and limitations within both markets, and will open opportunities to both large institutions as well as retail customers in a way that will enhance the lives of all people.