《The Bitcoin Ecosystem Needs a Truly Innovative and Practical Stablecoin!》 Bitcoin now faces an important proposition: how to turn Bitcoin into an interest-bearing asset? 1. Stablecoins are the biggest variable in the Bitcoin ecosystem! First, they can reshape Bitcoin's functional positioning: Bitcoin's high volatility makes it more suitable for long-term holding rather than daily payments. Stablecoins collateralized by Bitcoin and pegged to the US dollar provide price stability, allowing users to convert BTC into assets usable for payments, lending, or DeFi without selling. Stablecoins transform Bitcoin from a single asset into the anchor of a financial ecosystem. Second, they can change user behavior: Bitcoin holders often adhere to the HODL philosophy, unwilling to sell BTC for liquidity. Stablecoins allow users to obtain dollar-pegged stablecoins by collateralizing BTC, meeting consumption or investment needs while retaining BTC's long-term appreciation potential. Stablecoins incentivize users to shift from "passive holding" to "active participation," expanding the user base of the Bitcoin ecosystem. Additionally, they can expand the economic model of the ecosystem: DeFi applications in the Bitcoin ecosystem (such as lending and liquidity mining) are limited by BTC's volatility. Stablecoins provide a stable medium for transactions, enhancing the usability of Bitcoin assets in DeFi. Stablecoins can transform the Bitcoin ecosystem from "single asset-driven" to "diversified financial ecosystem," similar to the DeFi boom achieved in the Ethereum ecosystem through DAI and USDC. 2. Which dollar-pegged stablecoins in the Bitcoin ecosystem are worth attention? Many projects have attempted this before, but core issues such as stability and liquidation risks caused by highly volatile collateral, lack of transparency in cross-chain bridge security, unclear yield and governance mechanisms, and insufficient ecosystem integration and user targeting remain. These issues have limited the scalability of stablecoins in the Bitcoin ecosystem. However, a new player, Mezo @MezoNetwork, has emerged with its MUSD, overcoming the challenges of DAI through mature technology, clear positioning, and low-cost strategies, making it a dark horse in the field. The three core issues for Bitcoin ecosystem stablecoins are: where does the yield come from? How to maintain the stablecoin's value stability? How to ensure Bitcoin's security? Let’s take a closer look at how Mezo addresses these: (1) Where does the yield come from? Mezo's yield primarily comes from loan interest, liquidation penalties, minting/trading fees, and the potential appreciation of the mats points system (airdrop expectations). Low interest rates and points incentives attract user growth, while liquidation penalties and trading fees provide stable income in highly volatile markets. In the future, Mezo can further diversify its revenue sources by optimizing fee structures and governance mechanisms. (2) How to maintain the stablecoin's value stability? MUSD is designed to be pegged 1:1 to the US dollar, with its value stability relying on a combination of over-collateralization, dynamic adjustments, and liquidation mechanisms, drawing from MakerDAO's DAI model but focusing on Bitcoin assets. The single collateral design aligns with the Bitcoin ecosystem but must address price volatility risks. Mezo can further enhance stability by optimizing oracle and liquidation mechanisms and expanding MUSD's application scenarios. (3) How to ensure Bitcoin's security? Mezo's core assets are the Bitcoin deposited by users (including BTC, tBTC, WBTC, etc.), with security relying on the robustness of smart contracts, cross-chain bridges, and protocol governance. Thesis's technical background and transparent operations add credibility, but cross-chain bridges and oracles remain potential risk points. Mezo can further strengthen security through insurance mechanisms and community governance. 3. To summarize: The dollar-pegged stablecoin market in the Bitcoin ecosystem is currently represented mainly by MUSD (Mezo), with few other stablecoins explicitly collateralized by Bitcoin and pegged to the US dollar. MUSD fills the gap in dollar-pegged stablecoins within the Bitcoin ecosystem, precisely capturing the behavioral shift of Bitcoin holders from HODL to financialization by 2025. If MUSD can make breakthroughs in payment scenarios (such as cross-border remittances) and security, it could potentially become the "decentralized bank" of the Bitcoin ecosystem, driving further development of the Bitcoin ecosystem. We can continue to keep an eye on this.