FBTC and Mezo: Growing BitcoinFi

We're happy to announce our collaboration with the FBTC team! With this integration, FBTC holders can now deposit into Mezo.

Go to mezo.org/hodl-with/fbtc for the community code "FBTC1" to be automatically applied and start earning mats!

FBTC is a tokenized version of BTC, providing Bitcoin interoperability across various blockchain networks. It comprises three main components: custodial addresses on the Bitcoin main chain, smart contracts on destination chains, and off-chain modules.

Increasing Bitcoin's portability and usefulness across DeFi is critical to creating a permissionless and decentralized financial system. With FBTC, Bitcoin holders can use their BTC as collateral and supply liquidity to exchanges to earn yield, moving their Bitcoin from a passive store of value into active, high-powered money.

Here's how the FBTC system architecture works:

Custodial Addresses:

• The protocol generates a Bitcoin network deposit address for each user, controlled by MPC (multi-party computation) nodes.
• When users deposit BTC to these addresses, an equivalent amount of FBTC is issued on the destination chain. The total BTC locked in the custodial address matches the total FBTC supply on the destination chain.

The FBTC bridge contract manages user accounts, FBTC issuance, and cross-chain operations. All protocol contracts can be viewed in their documentation here.

Various off-chain modules are involved in the process of FBTC minting as well. Some of the key roles involved:

• Qualified Users: Entities that mint and burn FBTC after completing KYC/KYB requirements.
• Custodians: Financial institutions that manage BTC deposits in MPC addresses, ensuring asset security.
• Security Council: Oversees BTC custody and TSS nodes, including Mantle, Antalpha Prime, and Cobo.

FBTC’s governance uses a multi-signature contract managed by DAO members, including custodians and qualified users. This ensures transparent and inclusive decision-making, with an "M of N" signature scheme for contract execution.

Accepting FBTC brings the total number of assets accepted on Mezo to 10, with three Bitcoin-backed stablecoins, and three of the largest stablecoins on the market.

We're thrilled to be partnering with FBTC to continue to expand BitcoinFi.

Links

👾 Discord: https://discord.mezo.org

🕊 X: https://twitter.com/MezoNetwork

🏦 Deposit Portal: mezo.org/hodl-with/fbtc

ℹ️ Docs: https://info.mezo.org