The post Velar PerpDEX To Integrate Bitcoin-Collateralized mUSD Stablecoin appeared on BitcoinEthereumNews.com.

Source: Depositphotos Velar, a fast-growing protocol that sees itself as the lynchpin on the emerging Bitcoin-based decentralized finance economy, is teaming up with Mezo to add support for its native stablecoin mUSD on its perpetual DEX platform.  It’s an intriguing move because mUSD is the first decentralized stablecoin that’s fully collateralized by Bitcoin, paving the way for investors to use their BTC assets to generate DeFi yield without the risks tied to using centralized stablecoins.  As Mezo explains, mUSD gives DeFi users a way to maintain full control of their BTC even as they borrow against it, bringing utility to what was once idle capital.  Velar is one of the largest liquidity protocols building on Bitcoin and is most famous for its perpetuals DEX, which allows users to trade perpetual contracts in a decentralized way with full custody of their assets. Traders can use the platform to leverage long and short positions on a range of crypto assets, including BTC. It’s set to play a central role in the future of Bitcoin, driving its evolution from a simple store of value into a digital asset with the same utility as altcoins like ETH and SOL.  As for mUSD, it’s the native stablecoin of Mezo, a protocol that’s looking to help Bitcoin holders borrow against and earn yield on their BTC holdings without giving up custody. mUSD is backed 100% by Bitcoin reserves, and uses algorithms to maintain a 1:1 peg with the U.S. dollar. It’s designed to maintain Bitcoin’s core principles of self-custody and verifiability.   To ensure this peg can be maintained, Mezo requires that users deposit a minimum collateral ratio of 110% when they mint new mUSD. What that means is that the value of the collateralized BTC must be at least 110% of the amount of mUSD that’s…

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Filed under: News - @ March 27, 2025 11:21 pm