- 18 Mar, 23
Konomi Network (KONO) 101: The Multi-Chain DeFi Platform
The trust in traditional financial markets continues to decline, paving the way for decentralised finance (DeFi), which seems to appeal to investors who have lost faith. This new financial realm, built on blockchain, has a range of advantages and disadvantages compared to traditional markets.
While interoperability and speed issues persist, there are positives such as high profitability and transparency. However, Konomi Network has emerged as a prominent player in the field, providing solutions to a significant array of DeFi issues.
Konomi Network, the platform that uses the Substrate development framework of the Polkadot blockchain, allows investors to engage in multi-chain transactions, thereby addressing DeFi’s interoperability issues. Additionally, the platform hosts multiple products, including a high-security cryptocurrency wallet. If you are interested in learning more about Konomi, keep reading this article on Zatrun.com.
Table of Contents
What is Konomi Network (KONO)?
Konomi Network is a DeFi platform based on interoperability, built on the Substrate framework of Polkadot. This platform serves as a comprehensive money market and asset management system for inter-chain digital assets. To facilitate multi-asset trading, the project allows users to invest without having to switch between different applications.
Konomi Network offers a range of benefits, such as buying cryptocurrencies, earning interest on them, and participating in DeFi products. The platform has a token that allows owners to contribute to the platform’s liquidity. This token, known as KONO, allows users to vote on important protocol decisions, ensuring that the platform operates in a decentralised manner.
With a strong blockchain architecture that supports inter-chain operation, Konomi is complemented by various interoperability supports, such as Polkadot parachains and Ethereum bridges.
How Does Konomi Network Work?
Decentralised exchanges (DEXs) mostly experience liquidity issues. Konomi Network aims to solve this problem by allowing investors to take advantage of the liquidity pools available on other exchanges as long as they are connected to the Polkadot ecosystem.
This model expands the capacity of Konomi’s Automated Market Maker (AMM) model to facilitate high-frequency and high-volume transactions. Additionally, Konomi ensures that it operates without compromising users’ trading experience and without market manipulation. Furthermore, the platform includes Konomi Lend, a DeFi lending platform, Konomi Wallet, an inter-chain crypto wallet, and Konomi Trade, a peer-to-peer (P2P) decentralised exchange.
These products complete the ecosystem and support various investment types and earning methods, making the project a full-fledged DeFi platform. The ecosystem also offers advantages such as low gas fees and high transaction speeds, which it achieves through the Nominated Proof-of-Stake consensus mechanism.
What is KONO Token?
KONO is the native cryptocurrency of the Konomi Network. This ERC-20 token based on Ethereum is used to pay gas fees and manage the platform within Konomi. Users can stake their KONO coins in the blockchain, which operates through the Nominated PoS mechanism.
To do so, they must deposit their KONO coins into a liquidity pool that also holds other assets like ETH or DOT. By providing liquidity to the ecosystem, users become eligible for additional cryptocurrency rewards.
KONO coin holders can also participate in managing the platform by voting on proposals that are approved by the community. Therefore, decentralised governance is also encouraged by the platform. Some of the protocol changes that holders can propose include parameters related to pool staking fees, burning gas fees, and liquidity mining rates.
Is KONO a Good Investment?
Konomi Network derives its power from the innovative blockchain it has built its platform on. Although Polkadot is a relatively new blockchain, it is more efficient than the Ethereum network in terms of transaction volume and costs. Most cryptocurrency markets use Ethereum’s PoS model, which is not yet a fully functional scaling solution. Therefore, Konomi’s NPoS can make a big difference with its superior speed and expanded staking options.
Konomi also claims to have solved liquidity problems that even the largest DEXs in space are struggling with. However, the potential success of the project will depend on the team’s implementation and adoption of the Polkadot network. KONO coin is currently ranked as the 1178th largest project in the cryptocurrency market, trading at a unit price of $0.025.