Mezo’s boosted incentive vaults fuel practical use cases for bitcoin
Mezo Network Overview - October 7, 2025
Welcome back to the monthly Mezo Network Overview. Every month, we dive deep into the Mezo ecosystem to help you get up to speed on the network’s latest updates, metrics, developments and more. All in one place.
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Mezo Metrics
Total value locked (TVL): $71.9M (-3.75%)
MUSD supply: $6.57M (+94.38%)
Users (total addresses): 16.4K (+45.13%)
The metrics are accurate at the time of publication.
Mezo boosts incentives on Morpho’s vaults to broaden bitcoin use-cases
In alignment with its mission to evolve bitcoin from a store of value into a dynamic, productive asset, Mezo has teamed up with Threshold to boost incentives on Morpho’s vaults. Users who deposit tBTC, cbBTC or Mezo’s MUSD stablecoin can now earn lending yields, in addition to weekly rewards.
Mezo is essentially leveraging Threshold’s allocation of tBTC rewards into Morpho’s MUSD Alpha Vault on Ethereum. With MUSD as a stable collateral layer, this setup can generate yields of 5% to 8% APY, plus incentives, all while maintaining control over their assets.
Incentives matter in the grand scheme of things because they enhance liquidity in emerging markets like BTCfi. This creates a self-sustaining cycle where higher deposits lead to robust markets, competitive rates, and broader adoption. Unlike centralized finance, where yields come at the cost of control, Mezo’s approach rewards participation, drawing in cautious holders to decentralized protocols and aligning short-term gains with long-term network growth.
Enabling practical usage for bitcoin
Bitcoin loans and yield extend the currency’s uses beyond a store of value. Lending tokenized bitcoin like tBTC generates interest from borrowers seeking leverage, who can then access liquidity without selling their bitcoin, avoiding tax implications and preserving long-term exposure.
For example, a holder can collateralize their tBTC to borrow MUSD, which can be used, like fiat currency, for everything from buying groceries to funding a business expansion.
Such uses would be most useful in volatile economies or underbanked regions, where bitcoin loans can enable hedging, remittances or micro-lending.
What’s happening in the ecosystem
Curve Finance launched CRV emissions for MUSD, letting liquidity providers earn higher yield
Morpho upgraded its MUSD Alpha Vault rewards to include rewards from the vault and the aMUSD/USDC market
Learn about Mezo’s native bridge, used for standard withdrawals of assets like bitcoin and other supported tokens
Uniswap and CurveFinance deployed new MUSD liquidity pools and incentives via Merkle
UWI MUSD vault launched its RWA vault to Mezo, where APY is derived by providing loans to home developers who build pre-sold affordable housing in Southeast Asia
Get active in the network
Want to dive deeper into the Mezo ecosystem?
Bridge MUSD to Ethereum via Wormhole
Check out Mezo campaigns and complete quests to earn mats rewards
Sign up for Mezo’s month long hackathon to compete for a share of $37.5K MUSD and 37.5K in Mezo incentives across three tracks
Borrow MUSD against bitcoin at a fixed rate of 1% without having to sell your holding
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This information is for entertainment purposes only. It should not be considered financial advice, nor should it be used to make investment decisions. Cryptocurrencies are high risk and you should consult a financial professional before making any financial decisions. Make sure you do your own research.