Mezo has launched an ambitious “Bring Bitcoin Home” initiative aimed at repatriating a significant portion of the over $11 billion in wrapped Bitcoin currently utilized within the Ethereum decentralized finance (DeFi) ecosystem. By providing an attractive incentive structure, the protocol seeks to encourage users to migrate their Bitcoin liquidity back to the Bitcoin-native infrastructure that Mezo offers.
In a recent announcement, Mezo revealed that it would allocate up to 2.5% of the total MEZO token supply to reward early participants in its pre-deposit vaults. These vaults allow users to deposit various forms of Bitcoin, including tBTC, cbBTC, WBTC, or USDT, into Ethereum-based vaults. Starting at the end of January, these assets will automatically migrate to Mezo’s infrastructure, which includes options for fixed-rate borrowing, a fully Bitcoin-backed stablecoin, and yield derived from genuine on-chain activity.
Matt Luongo, CEO of Thesis, the venture studio behind Mezo, emphasized the initiative’s roots in early Bitcoin ideals. He referenced Hal Finney’s vision of establishing Bitcoin-backed banks as a foundation for a new financial system built on the principles of hard money. “Mezo is a Bitcoin-first system designed to support borrowing, saving, and yield directly against BTC, without custodians, wrappers, or variable-rate markets,” Luongo stated.
Mezo has implemented several key features in its system, including fixed-rate Bitcoin-backed loans available on the mainnet, a Bitcoin-backed stablecoin, BTC-denominated transaction fees, and innovative incentive mechanisms that promote on-chain engagement. This setup aims to reduce reliance on traditional custodial models and variable-rate lending, aligning closely with the foundational concepts of Bitcoin.
To incentivize participation, Mezo is offering early depositors an attractive rewards structure, with rewards starting at a 5% incentive annual percentage rate (APR), potentially culminating in an estimated total of around 7% APR. Notably, these incentives will be distributed on a first-come, first-served basis.
The timeline for this initiative includes several critical dates. Vaults opened on January 12, allowing users to earn competitive rates on their initial deposits. The vaults will lock on January 26 to initiate migration to Mezo, with the final unlocking scheduled for March 23 when participants will receive their MEZO tokens.
For those interested in participating, further information regarding the MEZO token and earning mechanics can be found in the Mezo Earn whitepaper, and pre-deposit vaults are currently available at comehome.mezo.org.
Mezo positions itself as a revolutionary player in the on-chain Bitcoin banking sector, allowing users to engage in borrowing, lending, and saving in a permissionless environment. With its decentralized model, Mezo eliminates traditional banking hurdles such as credit checks and constraints typical of conventional financial institutions, offering a self-custodial banking solution tailored specifically for Bitcoin holders. More details can be accessed on Mezo’s official website at mezo.org.
