Many current BTC ecosystem projects are constrained by BTC's lack of smart contract functionality, limiting their potential for expansion and innovation. Mezo stands out by driving network development and broadening the scope of Bitcoin’s capabilities, making BTC a dynamic asset through BitcoinFi.

tBTC is a decentralized, permissionless, and scalable Bitcoin equivalent, pegged 1:1 to BTC. This allows users to convert their Bitcoin into tBTC tokens (ERC20 format), enabling their use on Ethereum and other blockchain networks. Unlike existing centralized solutions, tBTC allows Bitcoin holders to access DeFi and Web3 without relying on centralized custodians.

tBTC operates by replacing intermediaries with a randomly selected group of node operators running on the Threshold Network. These operators use Threshold cryptography to jointly secure the Bitcoin deposited by users. The control of user funds is managed by the majority consensus of these operators, preventing any single entity from gaining control. Additionally, tBTC v2 is permissionless, ensuring accessibility for everyone. By combining Threshold cryptography, Proxy Re-Encryption (PRE), and other privacy-preserving services, tBTC enhances user privacy, control, and accessibility in Web3.

As a decentralized, Bitcoin-backed ERC-20 token, tBTC opens the door for Bitcoin users to participate in a wide array of DeFi applications, such as lending, borrowing, and liquidity provision, without relinquishing their Bitcoin holdings. Its decentralized and trustless nature, interoperability, and robust security demonstrate the team’s commitment to innovation and user-centric design.

Thesis, the venture studio behind both tBTC and Mezo, boasts over a decade of experience in the Bitcoin ecosystem. Their portfolio includes successful projects like Fold, Keep Network, and tBTC, which have all contributed to their deep understanding of user needs and the technical expertise required to build robust blockchain solutions. This extensive background equips Thesis with the necessary skills to develop secure, innovative, and user-friendly blockchain technologies.

Thesis consistently focuses on creating solutions that prioritize user ownership and security. The development of tBTC reflects this commitment by providing Bitcoin holders with a trustless and decentralized way to engage with DeFi without compromising their Bitcoin holdings. This user-centric approach ensures that the projects developed by Thesis not only meet technical requirements but also address practical user needs and concerns.

We have witnessed the cutting-edge innovations in tBTC brought by the team at Thesis. Their proven expertise and pioneering efforts in creating tBTC showcase their ability to push the boundaries of blockchain technology, developing secure, decentralized solutions that enhance Bitcoin’s utility and interoperability.

Mezo leverages the technology and principles behind tBTC to build a Bitcoin-first, EVM-compatible network that enhances Bitcoin's scalability and usability. By integrating tBTC as a core component, Mezo ensures a reliable and secure bridge for Bitcoin holders to participate in its ecosystem. This integration allows Mezo to offer reliable bridging, an economic layer prioritizing BTC users, and enhanced scalability and usability for Bitcoin transactions.

Unlike other Bitcoin layers, Mezo positions itself as an economic layer prioritizing BTC users and long-term holders. Mezo adopts the "Proof of HODL" consensus mechanism, where users lock BTC and MEZO tokens and use CometBFT consensus to validate transactions and protect the network. This BTC-first Economic Layer allows users to earn BTC by securing the network and includes a supply-reduction mechanism that helps secure the Bitcoin network.

Mezo aims to enhance Bitcoin's infrastructure by facilitating cheaper and faster transactions without deviating from the network's core principles. Mezo is currently under development but is accepting early BTC, tBTC, and wBTC (wrapped bitcoin) deposits, allowing participants to position themselves for higher yields when the protocol launches.

Mezo is designed with a strong emphasis on user ownership, allowing users to fully control their BTC. Additionally, Mezo uses BTC for gas fees, maintaining the network's Bitcoin-centric approach and ensuring seamless integration with the broader Bitcoin ecosystem.

The network employs a dual staking model that enhances security and rewards users. Participants can stake both BTC and MEZO tokens to validate transactions and secure the network, earning rewards in the process.

As an EVM-compatible chain, Mezo supports complex smart contracts, enabling developers to create a wide range of DeFi applications. This compatibility brings the rich functionalities of Ethereum to the Bitcoin ecosystem, fostering innovation and expanding Bitcoin's utility.

Bitcoin will be bridged to Mezo using tBTC, a two-way bridge system live on the Ethereum network since 2020. It is pegged to BTC at a 1:1 ratio and is minted when BTC is deposited into the bridge. tBTC enables users to use their BTC on Ethereum, Solana, Optimism, and other EVM networks to access DeFi products like lending, borrowing, stablecoin minting, and providing liquidity.

On Mezo, users can interact with various decentralized applications (dApps) using BTC bridged via the tBTC bridge. All BTC on Mezo, whether used to run a validator, pay for gas, or be used in dApps, is enabled by tBTC bridging. When bridging back to Bitcoin, tBTC is burned, and BTC is unlocked.

Mezo leverages a Proof of HODL consensus mechanism where participants stake (lock up) BTC and MEZO tokens to secure the network and validate transactions through CometBFT consensus.

CometBFT is software that serves blockchain applications similarly to a web server serving web applications. It uses the Byzantine Fault Tolerant (BFT) algorithm, which can withstand up to one-third of its validator nodes being malicious without compromising the network. CometBFT validators are responsible for proposing blocks of transactions and voting for them.

Mezo’s Proof of HODL encourages long-term BTC holding, which, according to Mezo, helps increase the network’s security, power Bitcoin-native applications, and generate yield. Mezo claims it also reduces BTC’s circulating supply as gas fees are paid in BTC.

Our primary objective is to achieve true decentralization in the blockchain world. We are exclusively interested in projects that align with this vision, particularly DEGEN projects. We firmly believe that decentralization is the cornerstone of a robust and equitable blockchain ecosystem. Therefore, we do not accept compromises on decentralization for the sake of project implementation. By supporting projects that adhere to this principle, we aim to foster a decentralized future where power and control are distributed among all participants, ensuring fairness, security, and resilience.

We concentrate on the intersection of foundational blockchain technology and the initial application layer. Our investment strategy targets projects that leverage advanced cryptographic techniques, game theory, and other mathematical disciplines to realize innovative and visionary functionalities. We prioritize projects that push the boundaries of what is possible in the blockchain space through rigorous research and development. By investing in cutting-edge technologies and methodologies, we aim to support the creation of groundbreaking solutions that address current limitations and open new possibilities for the blockchain ecosystem.

Our vision has always been to embrace a large number of non-Web3 users and drive the blockchain revolution. We seek to invest in projects that make blockchain technology accessible and beneficial to mainstream users, thereby accelerating the adoption and impact of blockchain in everyday life. Our goal is to bridge the gap between the technical potential of blockchain and the practical needs of a global user base. By supporting user-friendly and practical applications, we aim to ensure that the blockchain revolution reaches its full potential, transforming industries and improving lives on a global scale.

Mezo represents a significant step forward in integrating Bitcoin with advanced blockchain technologies, creating a more versatile and user-friendly ecosystem for BTC holders. With the proven success of tBTC and the expertise of the Thesis team, Mezo is well-positioned to enhance Bitcoin’s infrastructure, scalability, and usability. This makes it a compelling investment opportunity, especially with the increasing interest in decentralized finance. By investing in Mezo, we are supporting a project that not only aligns with our investment principles but also has the potential to drive significant innovation and growth in the Bitcoin and broader blockchain ecosystem.

Disclaimer: This post is for general informational purposes only and does not constitute investment advice, recommendations, or a solicitation to buy or sell any securities. It should not be used as the basis for making any investment decision and should not be relied upon for accounting, legal, tax advice, or investment recommendations. You are encouraged to consult your own advisers regarding legal, business, tax, or other related matters concerning any investment decisions. Certain information included here may have been obtained from third-party sources, including portfolio companies of funds managed by Aquarius. The opinions expressed in this post are those of the authors and do not necessarily reflect the views of Aquarius or its affiliates. These opinions are subject to change without notice and may not be updated.