Mint stBTC on Mezo

Remember when we first talked about bringing Bitcoin yield to Mezo? Today, we're excited to announce that our vision is a reality. Introducing stBTC on Mezo—your key to BitcoinFi liquidity.

By leveraging your existing tBTC or wBTC deposits on the Mezo platform, you can soon mint stBTC and multiply your mats.

What is stBTC on Mezo?

stBTC is Acre's liquid-staked Bitcoin that you can mint directly on Mezo. Think of it as a supercharged version of your Bitcoin deposit. It maintains exposure to Bitcoin's value while allowing you to use your assets in various BitcoinFi applications.

Users can mint stBTC by depositing tBTC or wBTC into Mezo. The minting process will be available directly in the Mezo portal.

How to Mint stBTC on Mezo

1. Deposit: Navigate to the Mezo portal and deposit your tBTC or wBTC.
2. Mint: Using the Mezo portal, mint stBTC against your wBTC or tBTC deposit.
3. Redemption: If you minted stBTC directly through Mezo, you can redeem it for the original wBTC or tBTC. If you acquired stBTC elsewhere (e.g., Uniswap), you must sell it on the open market or wait until the Mezo mainnet launches for full redemption flexibility.

Understanding the stBTC Interest Rate

The interest rate mechanism is designed to maintain the economic balance of the system and encourage active participation. Here's how it works:

1. Variable Rate: Governance can adjust the interest rate. This flexibility allows timely response to market conditions and ensures the system benefits all participants.
2. Interest Calculation: Interest is calculated based on the amount borrowed and the loan duration. It's applied when you repay your stBTC loan.
3. Rate Changes: Governance can adjust the rate to encourage certain behaviors. For example, the rate might be increased after the portal points program to encourage users to return their minted stBTC.
4. Preventing Trapped Deposits: The variable interest rate helps prevent scenarios where it becomes economically unviable to redeem the initial deposit, which could lead to trapped assets.

Let's look at a simple example:

Bob deposits 1 wBTC and borrows 1 stBTC at a 1% annual interest rate. After two months, governance increases the rate to 2%. Six months later, it's increased to 10%. When Bob repays his loan after 9 months, the interest is calculated as follows:

(1% * 2 months) + (2% * 6 months) + (10% * 1 month) = 2% of 1 wBTC

This dynamic interest rate system ensures that the stBTC ecosystem remains balanced and sustainable, even as market conditions evolve.

Why Use stBTC on Mezo?

With stBTC on Mezo, you’re positioned to maximize your BitcoinFi experience. Imagine depositing five wBTC into Mezo, minting stBTC against it, then swapping that stBTC to acquire more tBTC or provide liquidity on Curve—all while pumping your HODL score without even touching your original deposit. This is Bitcoinfi liquidity unlocked.

Using stBTC on Mezo opens doors to a diverse array of DeFi applications, from providing liquidity in decentralized exchanges to staking for additional yield or using it as collateral in lending protocols. Mezo simplifies this process with seamless integration—everything happens right in the Mezo portal, eliminating the need to navigate multiple tabs.

We've prioritized user experience, allowing you to mint, manage, and utilize your stBTC all in one place. Using stBTC on Mezo is easy but also safe. Security is tantamount to us, with stBTC backed 1:1 by tBTC, the most established and trusted decentralized Bitcoin bridge.

As Mezo continues to forge new partnerships, it remains the premier venue for exploring a wealth of BitcoinFi opportunities and rewards.

The Future of BitcoinFi on Mezo

The introduction of stBTC represents a significant step towards realizing the vision of BitcoinFi.

In the coming weeks, we'll share more details about the stBTC launch, including comprehensive guides, use case spotlights, and community Q&A sessions. We’ll also announce some partnerships as we continue to expand the utility of your Bitcoin.

For loyal users who have already deposited their wBTC or tBTC with us, you'll first have access to stBTC minting. And for new users, deposit today and become part of the Mezo Mycelium!

Stay tuned for more updates as we prepare to launch stBTC on Mezo.

Official Links:

👾 Discord: https://discord.mezo.org

🕊 X: https://twitter.com/MezoNetwork

🏦 Deposit Portal: https://mezo.org/hodl

ℹ️ Docs: https://info.mezo.org