The Osmosis community has proposed restoring collateral support for Alloyed BTC following the Nomic incident. Previously, the Nomic bridge minted approximately 40.65 nBTC without adequate Bitcoin reserve backing, of which about 39.84 nBTC were routed to the allBTC converter and counted as collateral, resulting in the current actual collateralization ratio of allBTC being approximately 63.97%.
Osmosis Proposes to Restore Alloyed BTC Collateral Support Through Governance and Community Pool Funds
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Summary
Osmosis has proposed restoring Alloyed BTC collateral support using governance and community pool funds, according to today’s latest BTC news. This follows the Nomic incident, in which the bridge minted approximately 40.65 nBTC without corresponding Bitcoin reserves. Of that amount, 39.84 nBTC was deposited into the allBTC converter as collateral, currently resulting in a 63.97% real collateralization rate. The update to BTC collateral aims to stabilize the system and restore trust.
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