Onomy Settlement & Pillars

We propose addressing forex settlement risk and market fragmentation issues (Schrimpf & Sushko, 2019) through Onomy, a decentralized protocol that virtualizes major currencies around the world and provides for near-instantaneous settlement. Recent advances in decentralized protocols and proven implementations of a new class of virtual assets named stablecoins have made this possible.

Onomy consists of three pillars designed to be a self-governed monetary stabilization system.

  • Onomy Network (ONET): A decentralized peer-to-peer computational network that processes transactions submitted by users and rewards operators in ONET's native protocol coin NOM.

  • Onomy Reserve (ORES): governs minting of stabilized virtual currencies, called Denoms, utilizing NOM as collateral.

  • Onomy Exchange (ONEX): a base-layer decentralized exchange that is used by Onomy participants to trade NOM and Denoms. ONEX is integrated with ORES to handle reserve accounts' maintenance and rebalance collateral ratios.

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