Osmosis Brings Bitcoin to Cosmos Network with Nomic and Kujira
Osmosis, the largest decentralized exchange (DEX) on Cosmos, is collaborating with Nomic and Kujira to introduce Bitcoin (BTC) to the inter-blockchain communications (IBC) protocol. Users can transfer BTC to the Cosmos network via Osmosis’ Nomic bridge for a 1.5% transaction fee. In return, users receive Nomic Bitcoin (nBTC), an IBC-compatible token issued by Nomic Chain, on a one-to-one basis. nBTC can be traded, used for liquidity provision on Osmosis, and utilized across more than 50 Cosmos-linked app chains.
nBTC Interchain Upgrade and Partnership with Kujira
The nBTC Interchain Upgrade will be launched on October 27 and activated on October 30. Through a partnership with decentralized finance protocol Kujira, users can send BTC to Kujira’s Sonar wallet address and self-custody their nBTC. The same seed phrases can restore users’ BTC and nBTC wallets. Furthermore, nBTC can be used as collateral to mint Kujira’s native stablecoin USK and for borrowing and lending within the ecosystem. Users also have the opportunity to bid for liquidated nBTC collaterals.
Limitations and Future Governance
During the initial stages of nBTC’s launch, there will be a hard cap of 21 BTCs for the cross-chain bridge. Once the bridge reaches its capacity limit, no further deposit addresses can be generated, and users cannot deposit additional BTC. This parameter will be controlled by Nomic DAO governance in an upcoming upgrade.
Hot Take: Osmosis Expands Crypto Universe with Bitcoin Integration
Osmosis’ integration of Bitcoin into the Cosmos network through the Nomic bridge opens up new possibilities for cross-chain transactions and liquidity provision. The introduction of nBTC as an IBC-compatible token allows users to leverage their BTC holdings on Osmosis and other Cosmos-linked app chains. With the upcoming nBTC Interchain Upgrade and partnership with Kujira, users can explore additional use cases such as self-custody, collateralization for stablecoin minting, and borrowing and lending. This development showcases the growing interoperability and expansion of the decentralized finance ecosystem.
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