Bitcoin L2 network Mezo launches yield token stBTC

Mezo, a Bitcoin layer-2 network aiming to expand the decentralized finance (DeFi) market on its flagship blockchain, has launched its liquid staking Bitcoin token, stBTC.

Pantera-backed project Mezo announced on August 28 that Bitcoin (BTC) returns will increase with the introduction of stBTC.

StBTC is a token backed 1:1 with tBTC, the Bitcoin bridge token powered by The Threshold Network.

According to Mezo, users will now be able to mint stBTC in exchange for Wrapped Bitcoin (WBTC) and tBTC, a Bitcoin-backed token that allows holders to participate in Ethereum (ETH) DeFi applications.

Expanding BitcoinFi

Mezo claims that depositing WBTC and tBTC into Mezo and minting stBTC will allow users to earn yields on DeFi applications in the growing Bitcoin DeFi space. BTC holders can mint the liquid-stake token and enjoy its benefits in Curve Finance while maintaining exposure to their bitcoin.

“As early HODLers, many of us have seen our Bitcoin increase in value over the years. But as we have also seen DeFi emerge, we have often felt like we had to choose between holding our Bitcoin and participating in these new financial opportunities.”

In Meso X.

According to Mezo’s post, decentralized exchanges, lending marketplaces, and Bitcoin L2 platforms that distribute tBTC include Morpho Protocol, Silo Finance, Beefy, and Velodrome. The team plans to expand to top DeFi and DEX platforms including Aave, GMX, and Synthetix.

Thesis, the venture studio behind projects like AcreBTC, Fold Bitcoin, and Taho, is also the developer of Mezo.