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- Alongside Nomic, the Cosmos Osmosis DAO ecosystem is looking to implement a fee-free Bitcoin Bridge.
- This bridge affords users the room to move assets across different DeFi applications.
The Cosmos ecosystem is about to get a major boost for Bitcoin (BTC) following a recent vote by the Osmosis Decentralized Autonomous Organization (DAO). According to reports, the community approved a proposal to implement a fee-free Bitcoin bridge through a revenue-sharing agreement with Nomic.
Streamlining BTC Movement Across DeFi Ecosystems
Traditionally, moving digital assets between blockchains has involved friction in the form of bridge fees. This can be a barrier for users seeking to leverage Decentralized Finance (DeFi) opportunities across different ecosystems. However, the partnership between Osmosis and Nomic tackles this issue by eliminating bridge fees for users.
This innovative approach received overwhelming support from the Osmosis DAO community, with 95% voting in favor of the proposal. The partnership signifies a step towards a more interoperable future for blockchain technology. Accordingly, users can seamlessly move their assets between blockchain platforms to participate in a wider range of DeFi applications.
The integration of Nomic’s bridge aligns with a broader trend in the industry. Developers are increasingly recognizing the potential of unlocking the vast liquidity tied up in Bitcoin. By bringing BTC into Cosmos, Osmosis aims to tap into this valuable resource and fuel further growth within the DeFi space.
Moreover, this move by Osmosis DAO also coincides with Nomic’s recent efforts to expand its reach within the crypto ecosystem. The Bitcoin bridge protocol recently announced the integration of Babylon’s staking protocol and introduced a Bitcoin liquid staking token, stBTC.
Babylon’s Bitcoin staking protocol works by staking directly on the Bitcoin blockchain. The process utilizes a cryptographic primitive called Extractable One-Time Signatures (EOTS) to allow the BTC stake to be slashed if a validator commits a double sign.
Cosmos Shakes Up DeFi
With the Osmosis DAO vote and Nomic’s bridge implementation, the future looks bright for seamless Bitcoin movement and integration into the DeFi space. Echoing earlier coverage by Crypto News Flash, contributors proposed a merger between the Osmosis and the UX Chain lending protocol. This partnership cements Osmosis’ position as one of the most dominant and successful DEX in the Cosmos ecosystem.
According to data from DefiLlama, Osmosis is the sixth-largest chain in terms of total value locked (TVL). It has amassed over $123 million in cumulative trade volume, making it one of the biggest decentralized exchanges in the Cosmos ecosystem.
Per Bitcoin, the cryptocurrency is currently experiencing a rebound after facing short-term market volatility. At press time, BTC is trading at $64,307, demonstrating a 1.2% increase in the past day. The trading volume, however, decreased by 28% to $19 billion, with the market cap pegged at $1.2 trillion.
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Despite the ongoing selling pressure, the flow of Bitcoin options on Deribit has been heavily skewed toward call options at strike prices well above the current market rate. Expanding on what was earlier reported by Crypto News Flash, analysts anticipate a substantial price increase for BTC.
