Osmosis Partners with Nomic and Kujira to Bring Bitcoin to Cosmos' Inter-Blockchain Protocol
Summary:
Osmosis, the largest decentralized exchange on Cosmos, is joining forces with Nomic and Kujira to introduce Bitcoin (BTC) to Cosmos's inter-blockchain communications (IBC) protocol. Users will be able to transfer their BTC to the Cosmos network using a Nomic bridge and receive Nomic Bitcoin (nBTC) in return. The nBTC Interchain Upgrade is set to launch on October 27 and go live by October 30. Another collaboration with Kujira allows users to self-custody their nBTC via Kujira's Sonar wallet. The nBTC can be used as collateral for Kujira's stablecoin USK and for borrowing and lending within the network.
The largest decentralized exchange (DEX) on Cosmos, Osmosis, is partnering with Nomic and Kujira to introduce Bitcoin (BTC) to its inter-blockchain communications (IBC) protocol. As revealed in an October 3 announcement during the Cosmoverse 2023 Conference, users can move their Bitcoin to the Cosmos network using the Nomic bridge provided by Osmosis for a mere 1.5% of the transaction's worth. In return, users will be given Nomic Bitcoin (nBTC), an IBC-compatible token, on a one-for-one basis by the Nomic Chain. The nBTC tokens can be traded, purchased, and supplied as liquidity on Osmosis, and can be utilized on over 50 Cosmos-affiliated app chains.
The introduction of native Bitcoin to Osmosis is imminent with the arrival of nBTC. The nBTC Interchain Upgrade is scheduled for launch on October 27 and anticipated to be active by October 30. A separate collaboration with decentralized finance protocol Kujira, allows users to transmit BTC to Kujira's Sonar wallet address for self-custody of their nBTC. Users' BTC and nBTC wallets can be recovered using the same seed phrases. Moreover, nBTC can be served as collateral to create Kujira's native stablecoin USK and can be potentially borrowed and loaned within the network. Users also have the opportunity to bid on liquidated nBTC collaterals.
During the initial phase of the nBTC launch, the cross-chain bridge will be limited to a maximum of 21 BTCs, according to Nomic developers. Once the bridge hits its maximum capacity, applications will cease generation of deposit addresses, restricting users from depositing additional BTC. This factor will be governed by Nomic DAO in an approaching update.
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Published At
10/3/2023 5:18:15 PM
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