DeFi
Osmosis from Cosmos DAO will float the Feeless Bitcoin Bridge with Nomic
- Alongside Nomic, the Cosmos Osmosis DAO ecosystem is looking to implement a free Bitcoin bridge.
- This bridge provides users with the ability to move assets between different DeFi applications.
The Cosmos ecosystem is poised to receive a major boost for Bitcoin (BTC) following a recent vote from decentralized autonomous organization Osmosis (DAO). According to reportsthe community approved a proposal to implement a free Bitcoin bridge through a revenue sharing agreement with Nomic.
Streamlining the BTC movement in DeFi ecosystems
Traditionally, moving digital assets between blockchains involved friction in the form of transition fees. This can pose a barrier for users looking to take advantage of decentralized finance (DeFi) opportunities in different ecosystems. However, the partnership between Osmosis and Nomic solves this problem by eliminating transition fees for users.
This innovative approach received overwhelming support from the Osmosis DAO community, with 95% voting in favor of the proposal. This partnership marks a step towards a more interoperable future for blockchain technology. As a result, users can seamlessly move their assets between blockchain platforms to participate in a wider range of DeFi applications.
The integration of the Nomic bridge aligns with a broader industry trend. Developers are increasingly recognizing the potential to unlock the vast liquidity linked to Bitcoin. By integrating BTC into Cosmos, Osmosis aims to harness this valuable resource and fuel future growth within the DeFi space.
Additionally, this move by Osmosis DAO also coincides with Nomic’s recent efforts to expand its reach within the crypto ecosystem. Bitcoin Bridge Protocol Recently announcement the integration of Babylon’s staking protocol and introduces a liquid Bitcoin staking token, stBTC.
Babylon’s Bitcoin staking protocol works by staking directly on the Bitcoin blockchain. The process uses a cryptographic primitive called Extractable Unique Signatures (EOTS) to allow the BTC stake to be reduced if a validator commits a double signature.
Cosmos disrupts DeFi
With the Osmosis DAO voting and the implementation of the Nomic bridge, the future looks bright for the smooth movement and integration of Bitcoin in the DeFi space. Echoing earlier coverage of News flash on cryptocurrencies, contributors proposed a merger between the Osmosis lending protocol and UX Chain. This partnership solidifies Osmosis’ position as one of the most dominant and successful DEXs in the Cosmos ecosystem.
According to data from ChallengeLlama, Osmosis is the sixth largest channel in terms of total value locked (TVL). It has accumulated over $123 million in cumulative trading volume, making it one of the largest decentralized exchanges in the Cosmos ecosystem.
By Bitcoin, the cryptocurrency is currently experiencing a rebound after facing short-term market volatility. At press time, BTC is trading at $64,307, representing an increase of 1.2% over the past day. Trading volume, however, declined by 28% to $19 billion, with the market capitalization pegged at $1.2 trillion.
Despite continued selling pressure, Bitcoin options flow on Deribit has been heavily tilted toward calls at strike prices well above the current market rate. Expanding on what was previously reported by News flash on cryptocurrenciesanalysts predict a substantial increase in BTC prices.
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