Osmosis, a decentralised exchange (DEX) on Cosmos, will be bringing Bitcoin (BTC $27,392) to inter-blockchain communications (IBC) protocol together with Nomic and Kujira, stated Cointelegraph.
With insights from an announcement made during the Cosmoverse 2023 Conference, on October 3, 2023, users can transfer Bitcoin to the Cosmos network through Osmosis’ Nomic bridge for 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. It is believed that the nBTC can be bought, sold, and used to provide liquidity on Osmosis. They are also expected to be usable across more than 50 Cosmos-linked app chains.
“Bitcoin is in deep need of an application 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, Osmosis, explained.
Furthermore, Nomic developers mentioned that during the early stages of nBTC’s launch, there will be a hard cap of 21 BTCs for the cross-chain bridge.
(With insights from Cointelegraph)
