What is Konomi Network? To answer that let’s start with the problem. Cryptocurrencies like Bitcoin have only just started since 2009. We have only seen less than 10 years of growth and the industry has already seen evolution from digital money to blockchain applications and permissionless smart contracts. It is clear that the product is not a random algorithm or just for “hype” since mainstream financial industries are gradually starting to accept cryptos. However, one key issue pertains with many of these cryptocurrencies. This issue is the inability to have cross-chain accessibility. Most of the DeFi applications currently are built on Ethereum. However, building on top of Ethereum is relatively more costly and slower in transaction speed. This makes it much harder to scale. Hence, Ethereum is not a great solution for being the base layer protocol.
In order to solve the issue of cross-chain capabilities, the Konomi team created their own network built on Polkadot to build the liquidity protocol for the future. The team strongly believes that in the future, assets will issue on various chains and that cross-chain transfer of value will be able to happen efficiently.
Tell me more about Konomi…
Built on top of the Polkadot network, Konomi will first be deployed as an independent blockchain using the Substrate framework. At the beginning, the platform will support functions in trading, deposits, and lending. With the growth of the Polkadot parachains and the launch of interchain communication protocols, Konomi will be able to support more financial products catered to the Polkadot ecosystem.
What exact products are available?
As mentioned previously, the Konomi platform will be able to provide functions in trading, deposits and lending at its initial launch.
Konomi Trade will allow users to access liquidity for assets in the Polkadot ecosystem. It will support smart contract based liquidity protocols and will start with constant product automated market makers. Users can also connect to decentralized wallets to the protocol and then trade with immediate on-chain execution. And since the platform is decentralized, the users can also trade long-tail assets without any restrictions.
Konomi Lend is a decentralized money market protocol for users to borrow and lend assets. The product is currently based on a collateralized debt position model. An important milestone for crypto assets is to have compound interest. This feature will incentivise users to hold the assets. DOT will be one of the first supported as the default collateral, since it is the native currency in the ecosystem. Once the parachain and para-thread auction is launched, there will be no room for innovation in financial products since the projects will need to bid for DOT supporters to share consensus in the Polkadot ecosystem. Konomi Lend will also have the capability to become an alternative solution for projects to raise DOT in exchange for project tokens. An example of this is projects can accept DOT as a collateral to then borrow the native tokens issued by new projects and receive interests.
The Konomi Wallet will help aggregate user positions in decentralized wallets and also help manage the active positions in the different protocols. Just as a banking customer may find it troublesome to have various banks at the same time, it is also very difficult for normal users to keep track of positions in different DeFi protocols. The wallet will complement Konomi Trade and Konomi Bank to provide users with a one-stop experience for managing assets on DOT.
What exactly does Cross-Chain Asset exchange mean?
A majority of the liquidity protocols only support ERC20 assets. Other blockchains will need to create a bridge to Ethereum or create wrapper tokens in order to participate in the liquidity pools. As a part of the Polkadot ecosystem, Konomi will support the assets issued on the Polkadot parachains. The Konomi team believes in the future of decentralized protocols being connected rather than siloed and Polkadot has the potential of becoming the de facto ecosystem that supports cross-chain smart contracts.
Tell me about the Konomi Token…
Konomi has its own platform token known as the Konomi token. The token’s use will be to incentivize users and liquidity providers to participate in the protocol. It will resemble the platform token of centralized exchanges and also implement a buy-and-burn mechanism as it generates transaction fees. In order to kick start liquidity, the token rewards will also be given to participants that contribute to the trading volume on the platform. The Konomi token will also serve as a governance token for the ecosystem. So in the future, the team plans to make Konomi a truly decentralized organization in terms of its product development, revenue model and token distribution.
Key Features of the Konomi Token:
- Decentralized Governance
- Users who hold the Konomi token will be able to participate in key governance protocols
- User Incentives
- Users can participate in programs to earn tokens and will be incentivized to do so with various programs
- Asset Staking
- Users can participate in staking to earn additional system rewards
Who can use Konomi?
Konomi is targeting crypto users that are looking to invest, trade, and manage their assets in an efficient way. With the mass adoption of crypto, Konomi hopes to allow more users to have a more efficient method of handling their crypto assets.
What versions are available?
As of right now, Konomi is offering a web application in its beta phase. It will support mobile versions in the future for a better user experience.
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