Welcome back to the monthly Mezo Network Overview. Every month, we’re diving into the Mezo ecosystem developments to help you get up to speed on the network’s latest updates, metrics, ecosystem developments and more. All in one place.
New here? Subscribe to get updates straight to your inbox.
The metrics are accurate at the time of publication. The percentage change is over a 30-day period.
⚡️ What we’re watching: Mezo is collaborating with Upshift to release a pre-launch vault, allowing users to deposit bitcoin to earn early depositor incentives. This initiative coincides with Mezo’s upcoming mainnet launch projected later this month, where deposited assets will be bridged to Mezo to generate yield through a fully managed strategy.
⚡️ Why it matters: Imagine a world where you can earn yield on an asset, engage with various DeFi protocols for lending and borrowing purposes, and earn competitive interest rates – all enabled by bitcoin. That’s what Mezo wants to accomplish.
Mezo’s partnership with Uplift is its next step to enhance its goal, by providing more user accessibility for engaging with DeFi protocols using bitcoin or the wrapped versions of it (more on that below.)
The network’s pre-launch vault is designed to eliminate the need to navigate complex DeFi mechanics, making it easier to participate in the BTCfi ecosystem. Diving deeper, the vault offers an accessible way for bitcoin holders to earn rewards and unlock high-yield opportunities upon mainnet launch. By depositing wrapped bitcoin (wBTC, tBTC, or cbBTC) into Upshift’s vault, users receive uptBTC, which will automatically bridge to Mezo at launch.
Wrapped Bitcoin (wBTC), and decentralized variants like Coinbase’s cbBTC, are tokenized representations of bitcoin on EVM-compatible chains that are backed 1:1 to bitcoin. These tokens allow bitcoin holders to participate in Mezo’s DeFi ecosystem, including lending, borrowing and liquidity provision, while retaining exposure to bitcoin’s price. By bridging bitcoin to Ethereum-compatible protocols, wBTC and cbBTC could unlock bitcoin’s potential for yield generation without requiring users to sell their holdings.
Through Mezo’s partnership with Upshift, users can deposit wBTC, tBTC, or cbBTC in exchange for uptBTC and Mezo rewards or network benefits, Uplift’s wrapped bitcoin token for the Mezo vault.
Upon mainnet launch, these assets will be auto-bridged to Mezo, which can then be used to: earn competitive yield through automated strategies, mint Mezo’s bitcoin-backed stablecoin, MUSD, or be used for Tigris liquidity pools.
MUSD is a dollar-pegged asset that is backed by bitcoin and offers fixed 1-5% interest rate. In addition to its ability to be used in DeFi protocols, this hopes to encourage users to deposit their bitcoin early, in order to receive bitcoin-enabled rewards.
Mezo’s goal is provide users a way to do more with their bitcoin, effectively turning a static asset into a productive one. This could create a robust ecosystem where bitcoin holders can earn yield and use the asset for onchain lending markets.
⚡️ The bigger picture: This set of tools can lower barriers to entry into the BTCfi ecosystem, while being able to leverage Upshift’s automated yield optimization platform.
The use of wBTC in Mezo’s ecosystem can amplify the amount of liquidity and utility in DeFi as well by tapping into bitcoin’s $1.8 trillion market cap. By enabling bitcoin holders to participate in liquidity pools and lending markets, Mezo can create new avenues for yield generation that were previously inaccessible before.
Mezo looks to differentiate itself from other yield protocols by combining bitcoin’s price upside with DeFi compatibility to offer a fully managed strategy that makes yield generation accessible and rewarding.
Want to dive deeper into the Mezo ecosystem?
To get this newsletter delivered to your inbox, subscribe here.
This product was built by Token Relations.
This information is for entertainment purposes only. It should not be considered financial advice, nor should it be used to make investment decisions. Cryptocurrencies are high risk and you should consult a financial professional before making any financial decisions. Make sure you do your own research.