A new way to earn with stablecoins

MUSD, Mezo’s native stablecoin, emerged as a new way to be productive with Bitcoin. No more sitting idle on your stack—you can access liquidity at market-leading fixed interest rates (currently 1%), keeping your BTC position intact and getting dollars to fund your lifestyle.

But what’s the next step when it comes to MUSD? Spending MUSD for real-world purchases is great, but how else can you be productive with a stablecoin?

Today, we’re introducing the first native vault on Mezo, explicitly designed to give your MUSD more purpose without the usual DeFi complexity.

The MUSD vault is managed by August, the DeFi prime brokerage that handles $7 billion in monthly volume. The vault turns your MUSD into a yield-generating asset through sophisticated onchain strategies—all automated, all transparent, and all without you clicking anything other than ‘deposit’.

Traditionally, access to this kind of institutional-grade strategy meant compliance overhead and high minimums, reserved for the few. But with Mezo, that changes.MUSD is now more than a spending vehicle. It’s an onchain yield strategy, allowing you to grow your BTC stack, participate in the Mezo economy, and never face any day-to-day complexity.

And best of all? It only takes seconds to access through the Mezo Portal.

How to Start Earning with MUSD

Earning on your MUSD savings is simple and all done in the Mezo dashboard.

Step 1: Acquire MUSD

You can get MUSD in two ways on Mezo:

• Open up a fixed-rate 1% Bitcoin loan, keeping your BTC collateral untouched and earning on your stablecoin liquidity.
• Swap from USDC, USDT, BTC, or other supported tokens natively in the Mezo app. Access the swap feature from anywhere in the app or overview page.

Step 2: Deposit

Now, you can head to the “Explore” page to deposit MUSD directly into the vault.

Step 3: Watch the Rewards Come In

Once you deposit, you can see your position stats, total vault deposits, and more.

Whenever you want to withdraw, you can do so on the same screen under mezo.org/explore/vaults.

Happy earning!

How MUSD Vault Works: Earning Yield With MUSD on Mezo

MUSD vaults give depositors access to yield opportunities rooted in Bitcoin itself, not inflated emissions or speculative tokens. You’ll earn MUSD yield on your MUSD deposits, all generated from Bitcoin finance activity.

The current strategy deployed by August uses various methods within the Mezo ecosystem to generate sustainable returns. These strategies include:

• Deploying to Tigris pools, Mezo’s native DEX infrastructure
• Various loops (for example, powered by Gearbox), both in Mezo and Ethereum DeFi ecosystems
• MUSD saver’s rate pool*

Earnings are distributed back to vault depositors and Mezo layers in bonus incentives (both in mats and ecosystem incentives) to reward early adopters further. This approach provides yield without compromising on Bitcoin-native alignment.

Looking Ahead: Stablecoin Yield & MUSD

DeFi ecosystems lack a sustainable, Bitcoin-aligned yield strategy, where MUSD shines. It's Bitcoin-collateralized, composable, and designed to serve as the base stablecoin for the Mezo ecosystem. Rather than needing to sell your BTC, hold a centralized stablecoin, or experience the fragmented DeFi world of other chains, you can have your cake and eat it too on Mezo.

More vaults and yield strategies are on the roadmap, expanding the scope of MUSD's capabilities. By anchoring MUSD yield strategies in Bitcoin-backed mechanisms, Mezo creates a stablecoin that preserves Bitcoin’s values while making it more productive.

About August

August democratizes institutional DeFi yield.

August, an on-chain prime brokerage and execution platform that enables users to borrow, lend, trade, and clear across any DeFi and CeFi application with any form of liquid collateral. August supports all DeFi primitives, including lending, borrowing, spot execution, over the counter (OTC) options, and derivatives.

No swapping or manually managing your funds. Just clean, consistent rewards.

Start Earning Stablecoin Yield Today

The MUSD vault was made to make earning on MUSD easy and accessible. Once you deposit, no further steps are needed. And best of all: if you got your MUSD from a Mezo Bitcoin loan, you’re now earning on a Bitcoin-backed stablecoin while your BTC collateral remains untouched.

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*MUSD saver's rate deposits are not yet open.

FAQs

What Is the MUSD Vault?

The MUSD Vault lets you deposit MUSD and earn passive yield. It’s managed by August, which deploys strategies like BTC collateral loops to generate returns. Just one click to deposit—no active management required.

Why This Vault Matters

Until now, MUSD was something to mint or hold. This vault gives it real utility. It blends the upside of BTC with the stability of a dollar-pegged asset, and it marks the beginning of a broader ecosystem of MUSD-based products.

Benefits to Users

Users earn base yield from BTC-backed DeFi strategies, plus bonus Upshift Points and Mezo Mats. The vault is easily accessible through the Mezo Portal (Explore > Vaults > MUSD Vault), and it lets users stay exposed to Bitcoin-driven strategies while holding stable MUSD.