Key Concepts

Noma is an experiment at cross-roads of financial engineering and decentralization, with the aim of researching and studying the behavior of the automated tokenomics and permission-less market-making systems, a powerful new DeFi primitive.

Intrinsic minimum value

Noma is designed to maintain a “minimum value” by using an algorithmic structure for its own liquidity which guarantees the solvency invariant is always satisfied. This is done by ensuring that the following relation is maintained every time the liquidity is re-balanced: 

 solvency invariant = capacity > circulating supply

In simple words, since Noma always sells at a price higher than the current market price, it can buy back 100% of the circulating supply at any moment. This means that should there be a black-swan event, the price will be “back-stopped” at whatever the IMV was at the time of the events. This feature is useful for holders to estimate their exposure to risk and conduct more informed investments.

    quadrantChart
    title Reach and engagement of campaigns
    x-axis Low Reach --> High Reach
    y-axis Low Engagement --> High Engagement
    quadrant-1 We should expand
    quadrant-2 Need to promote
    quadrant-3 Re-evaluate
    quadrant-4 May be improved
    Campaign A: [0.3, 0.6]
    Campaign B: [0.45, 0.23]
    Campaign C: [0.57, 0.69]
    Campaign D: [0.78, 0.34]
    Campaign E: [0.40, 0.34]
    Campaign F: [0.35, 0.78]

Fees & ”OnlyUp”

Trading activity on Uniswap V3 pays liquidity provider with a variable fee between 0.3 and 1%, chosen at pool creation. Noma owns and controls its own liquidity and is designed to send all fees generated by trading activity to the floor. For this reason, while the floor balance increases, so does the ability for Noma to buy back all circulating supply at a higher price. This means that the IMV can go up at certain times during liquidity rebalances.

Liquidity Rebalances

The main operations around which liquidity revolves are shift(), slide() and bump(). Operations are designed to be permission-less, which means anybody can call the functions on the smart contract without any specific privilege needed.