Proposal for Zero-Fee Bitcoin Bridge
Community Support and Voting:
Osmosis DAO members overwhelmingly support a proposal for a zero-fee Bitcoin bridge to Cosmos via Nomic, adopting a revenue share plan.
Implementation and Impact:
If approved, Osmosis users will transact nBTC between Nomic and Osmosis without fees, pending a software update approved by both Nomic and Osmosis governance.
Addressing Traditional Bridge Challenges
Revenue Model Evolution:
Historically, bridges struggled to capture value from deposits and withdrawals. The Osmosis upgrade aligns Nomic’s protocol revenue with actual Bitcoin bridge usage.
Benefits and Use Cases
Enhanced DeFi Opportunities:
Users can leverage Bitcoin for DeFi activities like lending, borrowing, and staking on Osmosis, attracting new users.
Reaction from Osmosis Co-founder
Sunny Agarwal’s Perspective:
Agarwal views the proposal as a milestone in DAO-to-DAO transactions, introducing a new ‘rev share’ model for bridges leveraging appchains uniquely.
Growth and Future Prospects
Q4 2023 Performance:
Osmosis experienced significant growth, surpassing $5.3 billion in trading volume, driven by enhancements like volume-splitting incentives and targeted liquidity adjustments. By incorporating these subheadings and restructuring sentences for clarity and engagement, the article becomes more accessible and structured, enhancing readability and SEO effectiveness.
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