---
title: "Mezo USD (MUSD) Stablecoin Analytics"
canonical: "https://pharos.watch/stablecoin/meusd-mezo/"
description: "Build-time stablecoin profile for Mezo USD (MUSD). Live price, supply, peg, liquidity, and flow data are served by the Pharos API."
dateModified: "2026-06-03"
---



# Mezo USD (MUSD)

**Peg:** US Dollar

**Backing:** Crypto-Collateralized

**Governance:** CeFi-Dependent

**Status:** active

## Overview

Liquity-style BTC-backed CDP stablecoin on Mezo's Bitcoin L2, with sound redemption mechanics now dragged into D-grade territory by thin liquidity and concentrated control; persistent above-peg drift from defensive overcollateralization. Mezo's meUSD applies Liquity-style {{term:cdp}}CDP{{/term}} mechanics to Bitcoin collateral — 110% minimum ratio, permissionless {{term:redemption}}redemption{{/term}} at 75 bps, atomic settlement — across native and wrapped BTC variants on a Bitcoin L2 that Pharos classifies as unproven. The headline D grade tells a split story: peg health is genuinely strong at A-, but it sits next to a D liquidity score and an F on decentralization, and those two drag the overall down to where the design no longer rescues it. The peg drifts above par in the way BTC-backed CDPs tend to — borrowers overcollateralize defensively when Bitcoin volatility spikes — and meUSD has logged hundreds of brief deviation events with a worst-case push to roughly +591 bps. The decentralization mark is earned: the Ethereum surface runs through a 5/9 Safe and a Wormhole NTT manager that can raise its own mint cap, so "permissionless borrowing on Mezo" coexists with very real admin keys off-chain. DEWS has lately drifted toward the watchful end of the stress scale rather than sitting calm, which fits a thin two-chain deployment where DEX liquidity remains shallow for any serious exit scenario.

## Collateral

Bitcoin only; minimum 110% collateral ratio

## Peg Mechanism

BTC-only overcollateralized CDP with direct $1 BTC redemption; operates on Mezo (Bitcoin L2, not Ethereum or a Stage 1 L2)

## Contracts

| Chain | Address | Decimals |
| --- | --- | --- |
| ethereum | `0xdd468a1ddc392dcdbef6db6e34e89aa338f9f186` | 18 |
| mezo | `0xdd468a1ddc392dcdbef6db6e34e89aa338f9f186` | 18 |
| base | `0xdd468a1ddc392dcdbef6db6e34e89aa338f9f186` | 18 |

## Live Data

Real-time price, supply, peg score, liquidity, and flow data live at https://api.pharos.watch/api/stablecoin/meusd-mezo.