Bitcoin L2 Network Mezo Launches Liquid-Staked Token stBTC

Mezo, a Bitcoin Layer-2 network designed to bolster decentralized finance (DeFi) capabilities on the Bitcoin blockchain, has announced the launch of its liquid-staked Bitcoin token, stBTC. This new token aims to bring Bitcoin yield opportunities to Mezo’s ecosystem, a project backed by Pantera Capital, as disclosed on August 28.

stBTC is pegged 1:1 with tBTC, a Bitcoin bridge token facilitated by The Threshold Network. This enables users to mint stBTC against their holdings of Wrapped Bitcoin (WBTC) and tBTC. tBTC is a Bitcoin-backed token that allows users to engage with DeFi applications on the Ethereum blockchain.

Expanding Bitcoin DeFi

According to Mezo, depositing WBTC and tBTC on its platform to mint stBTC will enable users to earn yields across various DeFi applications within the expanding Bitcoin DeFi ecosystem. Bitcoin holders can mint the liquid-staked stBTC, utilize it on platforms like Curve Finance, and still maintain their Bitcoin exposure.

“Many early Bitcoin holders have watched their investment grow over the years but have felt conflicted about whether to continue holding Bitcoin or engage with new DeFi opportunities,” Mezo stated on X (formerly Twitter).

The post further mentioned that decentralized exchanges, lending markets, and Bitcoin Layer-2 platforms such as Morpho Protocol, Silo Finance, Beefy, and Velodrome have already integrated tBTC. Mezo plans to extend its reach to major DeFi and decentralized exchange platforms, including Aave, GMX, and Synthetix.

Mezo is developed by Thesis, the venture studio behind notable projects like AcreBTC, Fold Bitcoin, and Taho.

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