《Easy Interpretation of Mezo: A New Solution to Break the BtcFi Dilemma》
BtcFi is one of the most controversial tracks in this crypto cycle. After various anti-rug incidents, BtcFi has been criticized as a pseudo-proposition, but capital dares to continue investing.
Why? Because it is worth betting on as long as there is a possibility of leveraging BTC's trillion-dollar stock pool.
The high valuation brought about by capital's bet is very subtle in the current market. If it is not controlled well, it will be an anti-rug. This may also be inevitable due to the industry cycle transition. Below is an easy interpretation of Mezo, focusing on answering three questions:
1) What is Mezo?
2) What are the highlights of the project?
3) Can it reverse the decline of BTCfi?
_________
I. What is Mezo?
In a simple sentence: Mezo is a financial infrastructure platform built around Bitcoin, compatible with EVM, and can use BTC as Gas. Its core assets are BTC and MUSD (Bitcoin-backed stablecoin), and it deploys a full set of BTCFi financial tools such as lending, payment, stablecoins, and staking.
In layman's terms: It allows you to complete lending, wealth management, and consumption through BTC without selling BTC, creating a financial system with BTC as the sovereign asset.
The founder is the former founder of Thesis. The project has raised over $28 million in total, and investors include the founder of Curve, the founder of Taproot, and other industry leaders.
_________
II. What are the highlights of the project?
1. Mainnet two-layer architecture: Cathedra + Bazaar
1) The cathedral is the core of the underlying project, mainly including:
MUSD stablecoin (BTC over-collateralization)
Fixed-rate lending system with BTC as the core
tBTC cross-chain bridge (avoiding centralized custody)
The entire design seamlessly integrates swap, lending, bridging, and staking functions designed specifically for Bitcoin. By integrating core functions into a Bitcoin-centric architecture, friction is eliminated.
2) Bazaar is the innovation layer, encouraging developers to freely build Bitcoin native applications, such as SocialFi, GameFi, and experimental dApps. All functions are hosted on Mezo and supported by Bitcoin, and can directly call Cathedral capabilities.
Underlying security and innovation decoupling is the biggest feature of the entire architecture. The mainnet has already been launched.
2. MUSD stablecoin mechanism
This is a core feature of the project. The MUSD bottom layer is 100% collateralized by BTC. In order to ensure the failure of anchoring caused by market fluctuations, the project sets a minimum collateralization rate of 110%, a maximum loan-to-value ratio of 90%, an annualized interest rate of 1%-5%, and no fixed repayment period. All BTC reserves are visible on the chain and are completely transparent.
The highlight is that it has achieved extreme optimization on key parameters: on the one hand, borrowers can obtain up to 90% of the value of their Bitcoin holdings, greatly releasing the liquidity of BTC; on the other hand, the lending rate is maintained in a fixed range of 1%-5%, which is far lower than most Bitcoin lending protocols on the market, and the project currently does not set a fixed repayment plan.
3. Incentive points Mats
Main source: Locking up BTC/stablecoin, inviting, participating in the community
Main functions: Lottery, governance, airdrop reference, etc.
All points systems are actually linked to behavior. In other words, this may be an important reference for future incentives, airdrops, and governance.
Note that the official website has different point coefficients for locking up Bitcoin and stablecoins. For details, please refer to the official website: https://t.co/hdtvZeTUJy
_________
III. Can Mezo's solution reverse the decline of BTCFi?
Mezo's strategy is based on BTC, with MUSD stablecoin as the main medium, to open up BTC's lending, trading, payment, and other financial functions.
This design logic is more friendly to institutions and conservative users, and lays the foundation for building BTC-based credit cards, payment networks, RWA asset transactions, etc. in the future.
However, it must be admitted that the BTCFi track where the project is located does not have high community trust, and coupled with the high financing behind it, it also faces extremely high expectations. Whether it can effectively balance community expectations and capital demands and user experience is uncertain.
_________
IV. Summary
BTCFi projects are almost universally caught in the awkward situation of "good reputation but not popular." Whether Mezo can break through and open up incremental space remains to be tested by time.
But one thing is certain: the project is one of the most systematically integrated Btcfi architectures that integrates multiple core modules such as stablecoins, lending, Gas, bridging, and points.
This model is more likely to attract institutional funds, miner groups, etc., especially its low-volatility, high-certainty financing costs, which are extremely attractive to large funds, and the interest rate spread can naturally provide a stable source of funds for arbitrage and leveraged traders.
Of course, whether Mezo can survive and run out in such a market can only be said to be a very promising candidate project. The rest still needs time to test and the industry narrative to recover.
Statement: Based on publicly available project information, does not constitute investment advice, DYOR!
