Breakup of $11 billion wrapped BTC: A new way to migrate from Ethereum back to the original Bitcoin chain

[Crypto World] Recently, there’s an interesting development—Mezo has launched a “Bitcoin Repatriation” incentive program, planning to use 2.5% of the total token supply to mobilize a large-scale fund transfer. The logic behind it is quite simple: currently, over $11 billion worth of wrapped Bitcoin, including derivatives like tBTC, cbBTC, and WBTC, are stacked on Ethereum. How to redirect these assets back to the native Bitcoin network has become a focus for many ecosystem players.

How does it work? Starting now, users can deposit tBTC, cbBTC, WBTC, or USDT into a pre-deposit vault. These assets will automatically transfer to the Mezo platform in late January, where they will be used for fixed-rate Bitcoin collateralized loans, while also earning MUSD stablecoins. This effectively revitalizes idle wrapped assets—users can not only use stablecoins for other operations but also borrow against their collateral.

The estimated annualized yield is around 7%, and early depositors can enjoy higher reward multipliers. For those holding such assets, this kind of return is still somewhat attractive in the current DeFi environment. The core idea of this mechanism is to use incentives to guide capital flow, and it remains to be seen whether Mezo can carve out a differentiated path among many DeFi platforms.