Osmosis, a decentralised autonomous organisation (DAO), decided to accept a fee-free Bitcoin bridge so that bitcoin (BTC) could enter the Cosmos ecosystem. According to an email release obtained on Friday, a revenue-sharing deal with Bitcoin bridge Nomic is crucial to the process. By enabling users to transfer cryptocurrency assets between systems, a bridge helps blockchains communicate with one another more effectively.
One of the issues with bridges that the revenue-sharing agreement might help with is how the various parties make money from deposits and withdrawals.
According to the release, Nomic’s protocol revenue will be in line with the amount of its bridging BTC that is used. By doing so, users will be able to connect their bitcoin holdings to other ecosystems for activities connected to decentralised finance (DeFi) with less friction than they might have previously encountered.
Approximately 95% of the Osmosis DAO community’s votes, cast with less than twenty-four hours to go, supported the agreement. Developers are attempting to use the value associated with Bitcoin, the biggest cryptocurrency by market capitalization, to increase the liquidity of the larger digital asset market, and Nomic’s bridge is part of this trend. A bitcoin liquid staking token called stBTC was to be introduced by Nomic in April along with intentions to integrate Babylon’s Bitcoin staking protocol.