The Omm protocol aggregates the supply of each asset provided to the protocol. To create fungibility throughout the protocol, each asset supplied to a market is represented by an IRC-2 token (‘oToken’).
Users will receive oTokens reflective of the amount of the supplied assets, and will receive additional oTokens reflective of interest accrued when interacting with any of Omm’s smart contracts (Lend, Redeem, Borrow, Repay, Liquidation).
This design allows users to earn interest by simply holding an IRC-2 oToken.
sICX (Staked ICX)
ICX holders can earn staking rewards because the ICON Network is a delegated proof-of-stake (DPoS) network. Because of this, ICX deposits in the Omm protocol must first be sent to a Staking Pool contract.
The Staking Pool contract will then issue sICX in proportion to the user’s share of the staking pool.
The price of sICX is based on this formula:
(price of ICX × total ICX in Staking Pool contract) ÷ total sICX outstanding
Use case for suppliers
Suppliers can use Omm to improve their capital efficiency and generate additional returns through interest.
For example, a supplier can earn variable interest rates by depositing fiat-backed stablecoins, ICX, and IRC-2 tokens.
Additionally, by depositing assets, suppliers receive OMM, which represents ownership in the Omm protocol and comes with several benefits discussed.