KONOMI Network
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KONOMI Network

KONOMI is targeting crypto users that are looking into investing, trading and managing assets in an efficient way. It is currently deployed as an independent blockchain using the Substrate framework. At launch, it will support functions in trading, deposits and lending. As the Polkadot parachains are launched and that interchain communication protocols are live, Konomi could support more financial products specific to the Polkadot ecosystem.

The Product overview of Konomi

Konomi platform is offered as a web application in the beta phase and will support mobile version for better user experience.

Konomi Trade allows users to access liquidity for assets in the Polkadot ecosystem. It supports smart contract based liquidity protocols starting with constant product automated market makers. Users could connect decentralised wallets to the protocol and trade with immediate on-chain execution. Since the platform is decentralised, users could trade long-tail assets without any restrictions.

Konomi Lend is a decentralised money market protocol for users to borrow and lend assets. The product is currently based on a collateralized debt position model. It is an important milestone for crypto assets to have compound interest and this feature could incentivise users to hold the assets. DOT will be first supported as the default collateral, since it is the native currency in the ecosystem. As the parachain and para-thread auction is launched, there will be more room for innovation in financial products since projects will need to bid for DOT supporters in order to share the consensus in the Polkadot ecosystem. Komoni Lend also has the capacity to become an alternative solution for projects to raise DOT in exchange for their project tokens. For example, projects could accept DOT as a collateral to borrow the native tokens issued by new projects and receive interests.

Konomi Wallet helps to aggregate user positions in decentralised wallets and to manage the active positions in the different protocols. Just as a banking customer would find it troublesome to have several banks at the same time, it is difficult for non-professional users to keep track of positions in different DeFi protocols. It complements Konomi Trade and Konomi Bank to give users the one-stop experience to manage assets on DOT.

The use cases of Konomi

  1. Interaction between cross-parachain applications: Different parachains will use their own native tokens as the cost measurement of system applications, such as gas fees, service fees for calling services etc. Due to the completion of the XCMP protocol, the cross Parachain message passing is possible, and there is more space to support cross-application collaboration. Konomi’s decentralized liquidity protocol allows users to seamlessly use applications on different parachains without the need for repeated exchanges of different tokens on centralized exchange. In the future, when the asset ecology on the parachain becomes more mature, we can support instant token exchange-just like spending credit cards overseas, there is a default settlement currency.
  2. Benefits from DOT ecological assets: With the emergence of lending protocols like Compound and Aave, mainstream assets on Ethereum can obtain time value, which is much higher than the interest in traditional finance. With the improvement of lending infrastructure, there will also be more decentralized structured financial products to provide users with higher liquidity staking rewards. Konomi hopes to become the underlying lending protocol of the Polkadot ecosystem, providing interests and more financial products for the assets in the ecosystem.

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