Osmosis, the largest decentralized exchange (DEX) on Cosmos, will join Nomic and Kujira in bringing Bitcoin (BTC) to the eponymous Inter-Blockchain Communication (IBC) protocol.
According to an announcement during the Cosmoverse 2023 conference on October 3, users can transfer Bitcoin to the Cosmos network through Osmosis’ Nomic Bridge for a fee of 1.5% of the transaction value. Users then receive Nomic Bitcoin (nBTC), an IBC-compatible token issued by Nomic Chain, on a one-to-one basis. nBTC can be bought and sold and used to provide liquidity on Osmosis. They can also be used in more than 50 Cosmos-connected application chains.
Native Bitcoin is coming to Osmosis.
Get ready for nBTC @nomicbtc.
Here’s everything you need to know. pic.twitter.com/YuYX9jQamV
— Osmosis ⚡️ (@osmosiszone) October 3, 2023
The nBTC cross-chain upgrade will be released on October 27th and is expected to be activated on October 30th. partnership Through the decentralized finance protocol Kujira, users can send BTC to the latter’s Sonar wallet address and self-custody their nBTC. The same mnemonic phrase can restore a user’s BTC and nBTC wallets. nBTC can also be used as collateral for minting Kujira’s native stablecoin USK, and for lending within the ecosystem. Additionally, users can bid on liquidated nBTC collateral.
Nomic developers stated that in the early stages of nBTC’s launch, the cross-chain bridge had a hard cap of 21 BTC. “When the bridge reaches its capacity limit, the application will be unable 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,” the developers wrote.
#bitcoin Coming to the universe in the following ways @nomicbtc end of October
We want to let all good people know about the various use cases that will be available immediately on the Kujira network so that you can put your $nBTC Start working upon arrival.
It will be delicious
— Kujira (@TeamKujira) October 3, 2023
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