Deposit Bitcoin-Backed Stablecoins on Mezo

Bitcoin-backed stables are coming to Mezo. The best part? They boost your BTC deposits.

Joey Campbell

Jun 18, 2024 — 2 min read

Bitcoin-backed stables are coming to Mezo. The best part? They boost your BTC deposits.

The bottom of this post has an example of how the BTC Boost works.

What are Bitcoin-backed stables?

Bitcoin-backed stablecoins are partially (or entirely) collateralized by BTC. This allows you to use your BTC, the hardest collateral asset, to unlock liquidity.

By borrowing against their BTC, people can spend dollars on whatever they need—paying off debt, buying a wedding ring, or even degening on memes and NFTs—without selling their Bitcoin.

Instead of spending your sats, grow your BTC stash while spending fiat.

Strong BTC-backed stablecoins on Mezo

One of our main focuses with Mezo is to build a strong BTC-backed stablecoin, allowing you to stake your sats while you spend fiat. Currently, most BTC collateralization is offered via centralized lending platforms that hold custody of your BTC in exchange for liquidity.

Various Ethereum-based platforms recognize the value of BTC as a collateral asset and use Bitcoin wrappers to back their stables. For example, thUSD is more than 85% collateralized by tBTC, crvUSD is nearly 50% collateralized by wBTC, and Ethena's USDe is 48% backed by BTC.

Depositing Bitcoin-backed stablecoins

We're now accepting BTC-backed stablecoin deposits to the Mezo Portal. Deposited stables will add a bonus to users' daily BTC scores. Supported stablecoins include:

The deposit flow is the same as tBTC and wBTC. Once you are connected, select your preferred stable, and you'll see your daily score and the boost applied to your BTC deposits.

Disclaimer: USDe, crvUSD, and thUSD will be deployed from the Mezo Portal contract to various yield-generating strategies in DeFi. The Mezo treasury retains the yield. Because of this, users earn HODL Score bonuses up to 100% of their BTC deposits.

Example:

Your stables give you a score of 1,000 per day
You have a 1 BTC deposit generating 16,000 per day

The stable deposit will earn its respective 1,000 daily score while adding a 1,000 bonus to your daily BTC score.

Bonuses are capped at up to 100% of your BTC deposits. For example, if your BTC score is 16,000, the maximum bonus applied would be 16,000. The stable deposits have no cap for their daily score.

For more info, check out our documentation.