FAQs
Frequently asked questions for Mezo Portal, Mezo Validators, and stBTC
Mezo Portal
If I lock my bitcoin and Mezo launches before my lock date expires, will I be able to use my assets on Mezo?
If you max lock your bitcoin for 9 months, and Mezo launches in 7 months, your BTC will be automatically available for you to use on Mezo.
Do you get a higher score for depositing tBTC than WBTC?
Currently, all forms of bitcoin deposits generate the same score: 1,000 points per BTC per day
What happens to my bitcoin after I deposit?
Once you deposit your Bitcoin to Mezo (whether it is BTC, tBTC, or WBTC) it is securely held in a locking contract. We do not touch any of the funds. Once your Bitcoin is unlocked, you will receive 100% of your deposit back, minus the fees incurred for depositing. You can verify funds in the contract on Etherscan.
Is there a minimum deposit requirement?
There is a minimum of .01 BTC deposits from the Bitcoin Network. For ERC-20 deposits (tBTC and WBTC) there is no minimum.
Mezo Validators
When will the Mezo validator program launch?
End of Q3 we will open applications to close partners. The official program will be released in Q4.
What are the benefits of becoming a Mezo validator?
Validators play a critical role in securing the Mezo network. As a validator, you'll earn rewards in the form of MEZO tokens for contributing to network security and processing transactions. You'll also have the opportunity to be at the forefront of Bitcoin innovation. The Mezo token will be released in Q1'25.
What security measures and risk management practices are in place in terms of slashing?
There is no slashing with our current system because validators do not stake anything. Instead of that, the governance has an ability to kick specific validators from the pool if they observe misbehavior. The process is manual though and the kick criteria are solely at the governance's discretion
Mezo BTC bridge architecture
The BTC bridge's pillar on Mezo is the validators set. On Ethereum, this will be a special `BitcoinDepositor` smart contract. All Mezo validators will run a separate process that will observe what happens in the BitcoinDepositor contract on Ethereum. This process is called the bridge sidecar and it requires a connection to an arbitrary Ethereum node. Whenever someone locks tBTC in the `BitcoinDepositor` contract, an on-chain event will be emitted. All Mezo validators will capture it within their sidecars. A subset of Mezo validators endorsed to actively participate in the bridging process (the so called bridging validators; 10-15 top-tier validators) will embed the deposit data within the candidate block as part of the consensus process. Other validators (the non-bridging ones) will verify the deposit information against their sidecars. If they achieve consensus, the BTC on Mezo will be minted as part of the block. In order to achieve decent decentralization, we require that bridging validators run their sidecars with full Ethereum nodes. The non-bridging validators are encouraged to do the same but Alchemy/Infura is acceptable in the early stage of the network given the costs of running full Ethereum nodes
What software will I need to run a Mezo validator node?
Mezo Validators will need to run a few primary software components:
Mezo Node: This will allow you to run a light node, responsible for data availability sampling.
Mezo Validator: This will enable you to run a consensus node, participate in block validation, and earn rewards. Validators will also provide RPC endpoints for other applications to interact with the Mezo network.
Bridge Sidecar: This component handles the necessary processes for validating and transferring assets between Mezo and external networks, such as Ethereum.
What are the rewards for staking and delegation?
Validators and their delegators will earn rewards in the form of MEZO tokens for contributing to network security. The exact reward structure and commission rates will be finalized and announced before the program launch.
What are the security best practices for running a Mezo validator node?
Security is paramount. We will provide extensive resources on securing your validator node, including best practices for key management, hardware security, and ongoing monitoring.
stBTC
What is stBTC?
stBTC is a liquid-staked Bitcoin that you can mint directly on Mezo. It combines the value of Bitcoin with the ability to participate in BitcoinFi applications, enabling users to maximize their yield while maintaining exposure to Bitcoin.
What is Acre, and how does it relate to stBTC?
Acre is the underlying protocol that powers stBTC. It enables liquid staking for BTC, where your deposited BTC is converted to tBTC and used to run validators on various networks. The yield generated from these validators is then passed to stBTC holders.
Where does the yield for stBTC come from?
stBTC generates yield from two primary sources:
Protocol Layer Yield: Derived from network activity fees and inflationary rewards earned by validators running on the Acre protocol.
Application Layer Yield: Earned from providing liquidity in DeFi protocols, such as Curve, or from lending and borrowing activities within the Mezo ecosystem.
What token standard does stBTC use?
stBTC is based on EIP-4626. stBTC is a non-rebasing token, meaning the number of tokens you hold remains constant while their value appreciates as rewards accrue.
What can I do with my stBTC?
You can use stBTC in various DeFi applications, such as:
Providing liquidity in decentralized exchanges
Staking for additional yield
Using as collateral in lending protocols
Swapping for more tBTC to stack more mats
How can I redeem my stBTC?
If you minted stBTC directly through Mezo, you can redeem it for the original WBTC or tBTC. If you acquired stBTC elsewhere (e.g., Uniswap), you must sell it on the open market or wait until the Mezo mainnet launches for full redemption flexibility.
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