Mezo is thrilled to announce the launch of Mezo Pools, a new liquidity provision feature explicitly designed for DeFi users seeking yield opportunities within the Bitcoin ecosystem.

With Pools, users can seamlessly provide liquidity, monitor positions, earn trading fees, and unlock exclusive rewards, all while contributing to the growth of Mezo's vibrant decentralized finance environment.

What are Mezo Pools?

Mezo Pools allows you to become a liquidity provider (LP) on Mezo. You can deposit your assets into pools that power our native Mezo Swap feature. Every time a user executes a swap using a pool you've contributed to, you earn a share of the trading fees.

Pools launch with the following core trading pairs: BTC/MUSD, MUSD/mUSDC, and MUSD/mUSDT

Why Use Mezo Pools?

Pools are the key to unlocking a powerful DeFi loop on Mezo, creating a seamless journey to activate your assets at every step. This self-sustaining cycle begins when you get a Bitcoin loan and mint MUSD with Mezo Borrow.

You can provide liquidity from there by depositing that MUSD alongside BTC, for example, into a Mezo Pool. This position allows you to earn swap fees from trades and, soon, even more rewards, enabling you to generate yield and put your Bitcoin to work like never before.

How to Earn with Mezo Pools

There are multiple ways to generate yield with Mezo Pools.

1. Trading Fees: As a liquidity provider, you automatically earn a percentage of the fees from all swaps in your chosen pool. Volatile pools (like BTC/MUSD) charge a 0.30% swap fee, while stable pools (like MUSD/mUSDC) charge 0.05%. 100% of swap fees go to liquidity providers, distributed
   proportionally based on your share of the pool. Fees are collected in both tokens of the pair and can be claimed at any time.
2. MEZO Emissions via Gauge Staking: By staking the LP tokens you receive from providing liquidity into a staking gauge, you become eligible for MEZO emissions. The amount of emissions a gauge receives depends on how many veBTC holders vote for that pool each epoch (a 7-day cycle starting every Thursday at 00:00 UTC). Pools that attract more votes receive a larger share of emissions.

When you stake your LP tokens, you trade your direct swap fee share for MEZO emissions instead — creating a strategic choice between immediate fee income and token rewards.

The Mezo ecosystem extends beyond its native platform. To deepen MUSD’s utility across the broader DeFi landscape, liquidity pools are also available on leading Ethereum protocols like Uniswap and Curve.

Explore these opportunities to put your MUSD to work:

Uniswap Pools:

• tBTC/MUSD
• USDC/MUSD
• ETH/MUSD

Curve Pools:

• MUSD/USDC/USDT
• MUSD/sUSDe

How to Get Started in 3 Simple Steps

Ready to become a liquidity provider? It’s easy to get started.

1. Prepare Your Assets: To provide liquidity, you’ll need an equal value of both assets in a pair (e.g., $50 of BTC and $50 of MUSD).
   • Need MUSD? Mint it using your BTC on Mezo Borrow.
   • Need other assets or MUSD? Use Mezo Swap to trade for them.
2. Add Liquidity: Navigate to the Pools page on Mezo Explore. Select your desired pool, specify the amount you wish to deposit, and confirm the transaction. You will receive LP tokens in your wallet, representing your share of the pool.
3. Stake & Earn (Coming Soon): Head to the Pools page, select your position, and stake your LP tokens into a gauge to start earning MEZO emissions. The more votes your pool's gauge receives from veBTC holders, the more emissions you earn.

There are no lock-up periods in Mezo Pools. You have full control to add or remove your liquidity at any time.

Explore and Earn Today

Mezo Pools completes the loop, powering a circular Bitcoin economy where your assets are always active. Provide liquidity today to earn swap fees, or stake your LP tokens into gauges to earn MEZO emissions.

Explore Mezo Pools and Start Earning Now

Let's build the circular Bitcoin economy.

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Disclaimer: References to expected yields, APY, or other performance metrics are based on current performance and protocol parameters. Actual returns may be subject to change due to market conditions, protocol governance decisions, and other risk factors. Users are responsible for carrying out their own due diligence before choosing a Vault, and for monitoring any changes made to the Vault over time, particularly those subject to a time lock.