Mezo Borrow

Mezo Borrow receives a B- risk grade (33/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — well-backed team and professional audits, but aggressive collateral ratios and bridge dependency create meaningful risk for a young protocol. Mezo Borrow lets Bitcoin holders borrow MUSD stablecoin against their BTC at fixed interest rates as low as 1%, with a minimum 110% collateral ratio. Built on the Mezo Bitcoin L2 (backed by Pantera Capital), it launched its mainnet in May 2025 and has been audited by Quantstamp. The protocol enables spending and DeFi usage without selling BTC, with cross-chain MUSD availability via Wormhole.

The key risks identified for Mezo Borrow are: (1) Aggressive collateral ratio: The 110% minimum means your BTC collateral only needs to drop about 10% before your loan gets liquidated. Most CDP protocols require higher collateral buffers, so a sudden BTC price drop gives you very little time to add more collateral. (2) Bridge dependency: All BTC in Mezo flows through the tBTC bridge. If this bridge is ever compromised, all the Bitcoin backing every loan could be at risk — not just your individual position. (3) New chain, new protocol: Mezo mainnet launched in May 2025. Both the blockchain and the borrowing protocol are less than a year old, meaning they have not been tested through a major market downturn or extended bear market.

Mezo Borrow scores 33/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 5/20, Oracle Surface: 5/10, Documentation Gaps: 2/10, Track Record: 4/15, Scale Exposure: 3/10, Regulatory Risk: 5/10, Vitality Risk: 6/10. The highest risk area is Vitality Risk at 6/10.

Among 25 rated CDP protocols on Hindenrank, Mezo Borrow ranks #8 by safety (lowest risk score = safest). Its 33/100 risk score and B- grade place it among the safer CDP protocols.

Mezo Borrow scores 4/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.