July 11, 2024
Osmosis, Nomic, and Kujira Join Forces to Bring Bitcoin to the Cosmos Ecosystem
Bitcoin News

Osmosis, Nomic, and Kujira Join Forces to Bring Bitcoin to the Cosmos Ecosystem

Together with Nomic and Kujira, Osmosis, the biggest decentralized exchange (DEX) on Cosmos, will introduce Bitcoin to the protocol’s dubbed inter-blockchain communications (IBC).

Users may transfer Bitcoin to the Cosmos network using Osmosis’ Nomic bridge for 1.5% of the transaction amount, according to a statement made on October 3 during the Cosmoverse 2023 Conference. Then, Nomic Chain issues Nomic Bitcoin (nBTC), an IBC-compatible cryptocurrency, to users on a one-to-one basis. On Osmosis, the nBTC may be purchased, traded, and utilized as liquidity. Additionally, they work with more than 50 app chains that are connected to Cosmos.

“Bitcoin is in deep need of an application in the DeFi ecosystem, and Cosmos is in need of a base money asset that can serve as its primary store of value. Nomic will help make this long-awaited union for a Bitcoin-centric Cosmos a reality.”

Sunny Aggarwal, co-founder of Osmosis

“The Cosmos ecosystem is too important for it to lack a seamless and secure way to receive BTC,” added Matt Bell, CEO of Turbofish, the founder and core contributor of Nomic. “We see today’s announcement as the beginning of the most seamless and secure way to on-ramp users into the Cosmos ecosystem with BTC,” he further continued.

On October 27, the nBTC Interchain Upgrade will be made available, and on October 30, it is anticipated to go live. Users may deposit Bitcoin to the decentralized finance system Kujira’s Sonar wallet address and self-custody their nBTC thanks to a separate agreement. Users’ BTC and nBTC wallets can be recovered using identical seed phrases. Additionally, the nBTC may be used as collateral for loans and borrowings within the ecosystem, as well as to mint the native stablecoin USK of Kujira. Users can also place bids on liquidated nBTC collateral.

According to Nomic’s creators, the cross-chain bridge would have a hard cap of 21 BTCs during the initial phases of nBTC’s introduction.

“When the bridge reaches its capacity limit, applications will not be able to generate deposit addresses, and users will not be able to deposit more BTC. This parameter will be controlled by Nomic DAO governance in an upcoming upgrade,” developers wrote.

Image: Wallpapers.com

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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