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Mezo Borrow Review 2026: Borrow MUSD Against Bitcoin

Mezo Borrow lets users lock Bitcoin as collateral and mint MUSD, a Bitcoin-backed stablecoin, at a stated fixed 1% rate. It suits BTC holders who want liquidity without selling, but its small TVL and unlisted audits call for caution.

Mezo

By the DappsAtlas editorial team · Updated Nov 5, 2026

DappsAtlas score

6.6/10

Good

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Our verdict on Mezo Borrow

6.6/10

Mezo Borrow suits Bitcoin holders who want dollar liquidity without selling their BTC and who are comfortable with an early-stage protocol. Its main strengths are a stated fixed 1% rate, a visible collateral ratio and an all-in-one app with swaps, pools and vaults. The main caveat is risk: TVL is small, no audits are listed, and liquidation is possible if BTC falls. Start small, read the docs, and keep the collateral ratio well above the minimum.

Score breakdown

How Mezo Borrow scores

Security: 5.5/10
Ease of use: 7.5/10
Fees: 6.5/10
Features: 7.0/10

Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.

What is Mezo Borrow?

Mezo Borrow is the lending front end of Mezo, a Bitcoin finance app built by Thesis. Users deposit BTC and mint MUSD, Mezo's native stablecoin, instead of selling their Bitcoin. The homepage pitches it as a line of credit that is decentralized and self-custodial.

Mezo sits on its own network and also offers a swap, liquidity pools, yield vaults powered by Upshift Finance, and a wallet view. Search snippets from the project mention a fixed 1% rate and borrowing of up to 90% of Bitcoin's value, plus a card on-ramp through Banxa.

The tracked TVL is about 1.3 million dollars, and the product was listed in January 2026. That makes it an early-stage protocol. The tracking data lists no audits, and the team does not publish a security audit in the homepage excerpt.

How Mezo Borrow works

Mezo Borrow is a collateralized debt position (CDP) system. You lock BTC in a smart contract and receive MUSD, a stablecoin, as a loan. Because the loan is overcollateralized, the BTC is worth more than the MUSD you borrow.

The app shows your collateral ratio. If BTC falls and the ratio gets too low, the position can be liquidated to cover the debt. To close the loan you repay MUSD and get your BTC back. The project describes the rate as fixed rather than variable.

MUSD can then be held, swapped, added to liquidity pools or put into vaults. The project describes MUSD as designed to keep a 1:1 value with the US dollar.

7 features

Key features

BTC-backed borrowing

Deposit BTC as collateral and mint MUSD without selling your Bitcoin. The app displays loan status and the collateral ratio.

MUSD stablecoin

MUSD is the native stablecoin, described as backed by Bitcoin reserves and designed to track the US dollar 1:1.

Fixed-rate loans

Project material describes self-service loans at a fixed 1% rate, with borrowing of up to 90% of collateral value.

Yield vaults

Vaults powered by Upshift Finance offer yield strategies managed by third parties, with warnings that returns can change.

Swap and liquidity pools

Mezo Swap and pools let users trade assets and add liquidity, with MUSD minted through the borrow page.

Portfolio and governance

The Mezo wallet view shows BTC, MUSD, mats and NFTs in one place, and users can vote on the project's direction.

Card on-ramp

A Banxa integration lets users buy MUSD with a card through the borrow page.

Pros and cons

What we like

Lets BTC holders access dollar liquidity without selling their Bitcoin
Fixed 1% rate stated in the project's own material, which makes costs easier to predict
Built by Thesis, a team credited with tBTC, Fold and Taho
Loan status and collateral ratio are visible in the app
Extra tools in the same app: swap, pools, vaults and a card on-ramp
Self-custodial design, as described by the project

Watch out for

Total value locked is small at roughly 1.3 million dollars, so the market is thin compared with established lending protocols
No audits are listed in the tracking data, and the homepage excerpt does not name any audit reports
Borrowing depends on MUSD holding its 1:1 dollar target, and the peg mechanics are not detailed in its homepage
Positions can be liquidated if the collateral ratio falls too low, which is a real risk when BTC drops sharply
Third-party vaults and yield products add extra smart-contract and strategy risk, and the project tells users to do their own due diligence
Mezo runs on its own network, so users must move or bridge BTC onto it and accept the risks of that route

Mezo Borrow fees

The project's own search snippets describe a fixed 1% borrowing rate, but the homepage excerpt does not publish a full fee schedule. Other costs, such as origination or redemption charges, are not stated in the material available.

Users also pay network transaction fees on Mezo, and the homepage lists a FAQ on which token pays them. Swap, pool and vault fees depend on the product used. Current figures appear in the Mezo app and docs.

Is Mezo Borrow safe?

The tracking data lists no audits for Mezo Borrow, and the homepage excerpt names none. Users should check the docs for audit reports before depositing. As with any CDP, smart-contract bugs, oracle problems and sharp BTC drops are the main risks, and liquidation can cause a loss of collateral.

The homepage footer links to terms, privacy, a MiCA document and a whitepaper, and carries a warning that yields can change and that users must do their own due diligence on vaults. The team behind it, Thesis, is named, which helps accountability. The total value locked is small, so the protocol has limited time in production under heavy use. This is not financial advice.

6 steps

How to get started with Mezo Borrow

1
Get a compatible self-custodial wallet and hold BTC that you can use on the Mezo network.
2
Open the Mezo app on desktop, which the site recommends, and connect your wallet.
3
Go to the Borrow section and deposit BTC as collateral.
4
Review the rate, the maximum borrowing and the collateral ratio before minting MUSD.
5
Mint MUSD and keep an eye on your loan status so the position stays safely collateralized.
6
Optionally use the swap, pools or vaults, after reading each product's risks and terms.

Open Mezo Borrow

Who Mezo Borrow is for

Mezo Borrow is for long-term Bitcoin holders who want to spend or invest without selling their BTC, and who understand overcollateralized loans and liquidation. It is less suitable for anyone who needs audited, battle-tested infrastructure or cannot monitor a loan position.

Mezo Borrow FAQs

What is MUSD on Mezo?

MUSD is Mezo's native stablecoin. The project says it is backed by Bitcoin reserves and designed to hold a 1:1 value with the US dollar. Users mint it by borrowing against BTC collateral.

What interest rate does Mezo Borrow charge?

One search snippet from the project describes self-service loans at a fixed 1% rate, with access to up to 90% of the Bitcoin's value. Check the current terms in the app before borrowing, since parameters can change through governance.

Do I have to sell my Bitcoin to borrow?

You deposit BTC as collateral and receive MUSD against it, while the loan stays overcollateralized. If the collateral ratio drops too far, the position can be liquidated. The Mezo app shows your loan status and collateral ratio.

Is Mezo self-custodial?

The project describes Mezo as self-custodial, so you connect your own wallet. The homepage lists a wallet FAQ, but the exact supported wallets are not spelled out in the excerpt. Check the project's docs for the current list.

Who built Mezo?

Mezo is built by Thesis, a team the homepage credits with tBTC, Fold and Taho. Thesis is described as having more than ten years in the Bitcoin space.

Can I buy MUSD without borrowing?

The project's own material points to a card on-ramp via Banxa for buying MUSD, and mentions a MUSD spending use case. Availability may vary by region, so check the app for the options open to you.

Has Mezo Borrow been audited?

The tracking data lists no audits, and its homepage does not name any. Treat the protocol as carrying smart-contract risk and check the project's docs for any published security reviews before depositing.

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