The ICON DeFi Guide: Part 3 — Money Markets, Lending, and the OMM Network

Money Markets

Before we start diving into Omm (Open Money Market), let’s take a quick look at the protocol’s analogue in traditional finance: money markets.

Decentralized Money Markets

Just as MakerDAO (detailed in the prior chapter) represented the most notable platform for collateralized stable coins, there are two platforms that are arguably the leaders when it comes to decentralized money markets: Compound and Aave.

What is Omm?

Omm operates similar to Compound and Aave, but does so on the ICON blockchain.

How Omm Works

As described above, borrowers and lenders are essentially utilizing the same pool of funds.

Prototype of the Omm platform.


Like Balanced, Omm also has a liquidation risk, meaning that if the collateral you’ve deposited in order to take out a loan falls below a certain amount, your position will be closed out, meaning you’ll be able to get only a portion of your collateral back.

OMM Tokens

Just like Balanced issues Balance tokens, Omm will issue OMM tokens to those who utilize the protocol.

  • Adjustments to Loan to Value (LTV)
  • Adjustments to Liquidation Threshold
  • Adding new assets
  • DAO fund management
  • Adjustments to the interest rate model
  • Adjustments to the interest rate parameters
  • Adjustments to the oracle address
  • Adjustments to OMM Worker Tokens (OWT)


Similar to Balanced, the two primary risks one faces when utilizing Omm are smart contract risk (the chance the protocol has vulnerabilities that can be hacked), as well as liquidation risk.


Between Balanced and Omm, we now have an ability to generate stable coins, borrow assets, and lend assets, all on the ICON network.



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ICON contributor and analyst, ready to hyperconnect the world. Twitter: @iconographerICX