Mezo Developers Launch Liquid Staking Bitcoin Token

Developers have launched a liquid staking token for digital gold called stBTC on the Mezo Bitcoin L2 network.

As with other similar cases, the asset allows users to earn income while maintaining exposure to the price fluctuations of the leading cryptocurrency.

To issue stBTC, one must lock WBTC or tBTC and pay a fee.

Holders of stBTC have the option to transfer to the tBTC/stBTC pool on the Curve platform to receive Curve LP tokens. According to the team, these can be locked in Mezo to earn “magic satoshis.”

“Many […] watched the rise of Bitcoin’s price […] and the development of DeFi, often feeling that we have to choose between holding coins and participating in new financial opportunities,” the statement reads.

stBTC — an ERC-4626 token — is based on the Acre protocol from Thesis. Unlike some rebalancing tokens and elastic supply models, stBTC will increase in value as staking rewards accumulate, according to the developers.

The team has implemented an annual issuance fee — 2% for tBTC and 3% for WBTC — as a countermeasure when the value of stBTC exceeds the amount of locked tokens.

Back in April, Mezo developers raised $21 million.