Cosmos, the network of interoperable blockchains, is set to welcome Bitcoin (BTC) to its ecosystem through a joint effort by Osmosis, Nomic, and Kujira. Osmosis is the largest decentralized exchange (DEX) on Cosmos, Nomic is a Bitcoin sidechain that enables fast and cheap transactions, and Kujira is a decentralized finance (DeFi) protocol that
offers stablecoins, lending, and liquidation services.
The integration of Bitcoin into the Cosmos network will be enabled by Nomic Bitcoin (nBTC), an IBC-compatible token issued by Nomic Chain. Users can transfer Bitcoin to the Cosmos network via Osmosis’ Nomic bridge for 1.5% of the transaction value and receive nBTC on a one-to-one basis. The nBTC can then be used across more than 50 app-chains connected to Cosmos IBC, such as Terra, Akash, and Sentinel.
The nBTC Interchain Upgrade will be released on October 27 and is expected to activate on October 30. Through a separate partnership with Kujira, users can also send BTC to the 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.
The development is part of a larger vision to bring Bitcoin to all DeFi platforms, allowing users to trustlessly invest, earn, and pay with their BTC anywhere. By collaborating with Interlay, a team that shares the Cosmos vision of interoperability among chains, Osmosis aims to eventually bring Bitcoin to the entire Cosmos ecosystem through interBTC, another IBC-compatible token.
The integration of Bitcoin into the Cosmos network is expected to boost the liquidity, security, and innovation of both ecosystems. It will also create new opportunities for cross-chain collaboration and value creation. As Matt Bell, the CEO of Turbofish, the company behind Nomic, said during the Cosmoverse 2023 Conference: "We are excited to bring Bitcoin to the entire Cosmos ecosystem and unlock a truly seamless and interoperable Bitcoin experience in Cosmos."1234