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Introduction to Noma

Noma is an advanced Automated Liquidity Management (ALM) system built on Uniswap V3, designed to manage and optimize its treasury using concentrated liquidity positions trustlessly with built-in market making.

  • Noma’s Protocol Owned Liquidity (POL): ensures stability through ETH-backed floor positions, dynamic price discovery with $NOMA, and broad liquidity coverage via anchor positions.

  • Credit facility: offers capital-efficient loans with $NOMA collateral, avoiding liquidation risk by burning unpaid collateral.

  • Staking and trading rewards: provide $NOMA rewards, encouraging user participation and engagement.

  • Liquidity rebalancing: through the sweep() function maintains optimal reserve distribution and increases the Baseline Liquidity Value (BLV).

  • Revenue streams: include liquidity provision fees and upfront service fees from loans, with strategic revenue reinvestment for stability and ongoing development.

Noma’s design ensures a robust and sustainable ALM system in the decentralized finance space.

This post is licensed under CC BY 4.0 by the author.

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