Ecosystem Developers Bring Bitcoin to Cosmos Network

Osmosis, Nomic, and Kujira Collaborate to Bring Bitcoin to the Cosmos Network

The largest decentralized exchange (DEX) on Cosmos, Osmosis, has teamed up with Nomic and Kujira to enable the transfer of Bitcoin (BTC) to the inter-blockchain communications (IBC) protocol of the Cosmos network.

How it Works: Transferring Bitcoin to Cosmos

According to an announcement made during the Cosmoverse 2023 Conference on October 3, users can use Osmosis' Nomic bridge to transfer Bitcoin to the Cosmos network. The transaction fee will be 1.5% of the transaction value, and users will receive Nomic Bitcoin (nBTC), an IBC-compatible token issued by Nomic Chain, at a one-to-one ratio. These nBTC tokens can be bought, sold, and used for liquidity on Osmosis and across more than 50 Cosmos-linked app chains.

The Release of nBTC Interchain Upgrade

The nBTC Interchain Upgrade is set to be released on October 27 and activated on October 30. In collaboration with decentralized finance protocol Kujira, users will also be able to send BTC to Kujira's Sonar wallet address and self-custody their nBTC. The same seed phrases can be used to restore both BTC and nBTC wallets. Additionally, nBTC can serve as collateral for minting Kujira's native stablecoin, USK, and for borrowing and lending within the ecosystem. Users can even bid for liquidated nBTC collaterals.

Initial Limit and Future Upgrades

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, applications will not be able to generate deposit addresses, and users will not be able to deposit more BTC. However, Nomic DAO governance will have control over this parameter and will address it in an upcoming upgrade, according to the developers.

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