Ecosystem developers bring Bitcoin to Cosmos network

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Osmosis, the largest decentralized exchange (DEX) on Cosmos, will be bringing Bitcoin (BTC) to the namesake inter-blockchain communications (IBC) protocol together with Nomic and Kujira.

According to an October 3 announcement during the Cosmoverse 2023 Conference, users can transfer Bitcoin to the Cosmos network via 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. The nBTC can be bought, sold, and used to provide liquidity on Osmosis. They are also usable across more than 50 Cosmos-linked app chains.

The nBTC Interchain Upgrade will be released on October 27 and is expected to activate on October 30. Through a separate partnership with decentralized finance protocol Kujira, users can send BTC to the latter’s Sonar wallet address and self-custody their nBTC. The same seed phrases can restore users’ BTC and nBTC wallets. The nBTC can also be used as collateral to mint Kujira’s native stablecoin USK and for borrowing and lending within the ecosystem. In addition, users can bid for liquidated nBTC collaterals. 

Nomic developers say that during the early stages of nBTC’s launch, there will be a hard cap of 21 BTCs for the cross-chain bridge. “When the bridge reaches its capacity limit, applications will not be able 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,” developers wrote.

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