Nomic Bitcoin Bridge Update 4
For links to resources within the article please click through to our blog.
The first mainnet phase of the Nomic Bitcoin bridge launched 4 weeks ago. Today is the start of week five. During this testing phase only 21 bitcoin will be allowed through the Nomic bridge. Full mainnet is scheduled to launch sometime in January. That will be version 8.
If you care to check out the previous updates on Reddit, click through to our blog for links to Update 1, Update 2, and Update 3.
Today’s Key Takeaways
- Many validators are jailed. Jailed validators do not earn rewards so if your validator is jailed, redelegate.
- More BTC has been bridged into the Cosmos
- There is slightly more nBTC liquidity on Osmosis
- There is slightly more nBTC liquidity on Kujira
How to redelegate NOM tokens
NOM reward APY is currently over 40%, so claim and restake your NOM as often as you can to compound your stack. Many people stake and then forget about it and that’s not a good idea.
Check in on you delegation because the network is tricky and validators often get jailed. Make a calendar note to check in on your stake regularly. That way you will remember to compound your rewards too.
One way to hedge your risk of downtime is to stake with 2 or 3 validators.
Please consider redelegating to us at Atlas Staking.
Claim your Nomic (NOM) airdrop
1. First, check to see if you have any unclaimed NOM tokens that were airdropped to your wallet. I had 18 NOM tokens waiting to be claimed and it was a fun surprise. Connect your wallet to the Nomic dashboard. Then, click the rewards tab.
2. After you have checked the rewards page, click the “Staking” tab to check in on your staked NOM tokens. Then, click the “inactive” tab up top to see whether or not your validator is jailed.
3. If your validator is jailed, click on the validator name to redelegate. Simply click the box that says, “Redelegate” and then search for Atlas Staking.
Additionally, if you are currently only staking NOM with one validator and want to hedge your risk of downtime by staking with a second validator, we’d be thrilled to have you as a delegator at Atlas Staking.
Nomic nBTC liquidity after 4 weeks
Since last week bitcoin deposits are flat. They are only up around 5% over the last 3 weeks. We believe this is because:
- the 1% bridge fee, which is set to decrease substantially with the next update.
- There is no incentivized liquidity, so not much reason to deposit into liquidity pools.
- Issues with relayers have caused IBC transactions to take far too long.
nBTC liquidity on Osmosis
Osmosis nBTC/USDC liquidity in pool 1253 is flat since last week, but volume is higher. So, the results are mixed.
Osmosis nBTC/wBTC liquidity in pool 1284 is 42% higher and volume is up 140% since last week! Thumbs up!
nBTC liquidity on Kujira
Liquidity is slim because there is no incentive to deposit your Bitcoin. You can see in the screenshot below the APR is 0%. If you want to contribute because you’re a nice person and want to support the ecosystem and expect nothing in return for now, using Kujira BOW you can provide liquidity for nBTC/wBTC, nBTC/MNTA, and nBTC/USK.
The Kujira protocol and the various platforms are pretty impressive. One of the coolest features is the ability to bid on liquidated nBTC using Kujira Orca. You can bid for nBTC using xUSDC and xUSK.
Conclusion
It was a modestly positive week for Nomic, as Bitcoin neither came into or left the Cosmos. Trading volume is up on DEXs, however liquidity is mostly flat because the pool incentives are low.
Remember to stake and compound your NOM! Thanks for delegating to us at Atlas Staking.
The Atlas Staking Team
Nothing we say is financial advice or a recommendation to buy or sell anything. Cryptocurrency is a highly speculative asset class. Staking crypto tokens carries additional risks, including but not limited to smart-contract exploitation, poor validator performance or slashing, token price volatility, loss or theft, lockup periods, and illiquidity. Past performance is not indicative of future results. Never invest more than you can afford to lose. Additionally, the information contained in our articles, social media posts, emails, and on our website is not intended as, and shall not be understood or construed as financial advice. We are not attorneys, accountants, or financial advisors, nor are we holding ourselves out to be. The information contained in our articles, social media posts, emails, and on our website is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation. We have done our best to ensure that the information provided in our articles, social media posts, emails, and the resources on our website are accurate and provide valuable information. Regardless of anything to the contrary, nothing available in our articles, social media posts, website, or emails should be understood as a recommendation to buy or sell anything and make any investment or financial decisions without consulting with a financial professional to address your particular situation. Atlas Staking expressly recommends that you seek advice from a professional. Neither Atlas Staking nor any of its employees or owners shall be held liable or responsible for any errors or omissions in our articles, in our social media posts, in our emails, or on our website, or for any damage or financial losses you may suffer. The decisions you make belong to you and you only, so always Do Your Own Research.
