Bitcoin Integration by Osmosis, the biggest decentralized exchange (DEX) on Cosmos, is teaming up with Nomic and Kujira to introduce Bitcoin (BTC) to the inter-blockchain communications (IBC) protocol.
During the Cosmoverse 2023 Conference on October 3, it was revealed that you can move Bitcoin to the Cosmos network through Osmosis’ Nomic bridge, and it will cost you 1.5% of the transaction value. In return, you’ll get Nomic Bitcoin (nBTC), which is an IBC-compatible token issued by Nomic Chain, with a one-to-one ratio. These nBTC tokens can be traded, sold, used for liquidity on Osmosis, and utilized on over 50 Cosmos-connected app chains.
The nBTC Interchain Upgrade is set to launch on October 27 and should become active on October 30. In collaboration with the decentralized finance platform Kujira, users have the option to send BTC to Kujira’s Sonar wallet address, where they can have self-custody over their nBTC.
The same seed phrases can be used to recover both BTC and nBTC wallets. nBTC can also serve as collateral to create Kujira’s native stablecoin, USK, and for borrowing and lending within their system. Furthermore, users can participate in bids for liquidated nBTC collaterals.
The developers at Nomic have mentioned that in the initial phase of nBTC’s launch, there will be a maximum limit of 21 BTCs for the cross-chain bridge.
They stated, “Once the bridge hits this limit, new deposit addresses cannot be created, and users won’t be able to deposit additional BTC. This aspect will be managed through Nomic DAO governance in a future update.”
