How Thesis Is Revolutionizing New Ways To Unlock Bitcoin’s Value

In a rapidly evolving crypto landscape, projects looking to help Bitcoin holders find new ways to unlock value are gaining momentum.

Thesis, led by longtime bitcoiner Matt Luongo, is perhaps one of the more interesting players in the space, launching Mezo network and now Acre with a specialized focus on retail users.

In a new Coinage exclusive, Luongo shared the progress that Thesis has made in its endeavor to build a Bitcoin economic layer, with Mezo now attracting more than $100 million in total value locked (TVL) and backing from powerful venture firms like Pantera and Multicoin.

"What I like about TVL for a project like this, though, is that's Bitcoin," Luongo explained, differentiating from some other projects in DeFi. “It’s not like a shell game, you can see onchain that that's Bitcoin, that's not a token someone's printed."

Perhaps just as importantly, Luongo also points out that many of the early users the project has been able to attract have kept their bitcoin on the platform for longer than nine months. "There's been this built-up demand for years for people to earn yield on Bitcoin," Luongo noted, highlighting the shift towards making Bitcoin an investment rather than a dormant one.

Reflecting on the painful lessons from the collapse of centralized lenders like BlockFi and Celsius, Luongo emphasized the transparency and security of their decentralized approach. "The most important thing for people to ask themselves with a project like this is: Where does the yield come from?" he explained. Unlike the opaque operations of previous lenders, Mezo and Acre are looking to allow users to see exactly where their Bitcoin is going, thanks to onchain transparency.

The essence of the innovation, according to Luongo, lies in leveraging Bitcoin's unique strengths to secure new networks. "In the case of Mezo, a third of the network security comes from Bitcoin holders," he said. This allows for Bitcoin to be used as collateral for a variety of financial products, from lending to derivatives, while maintaining its integrity as a hard asset.

Discussing the broader potential of these developments, Luongo mentioned the ambitious goals of their projects. "Our mission at Mezo is to see 25% of the world's economic activity on Bitcoin," he stated. This vision underscores the significant impact that new layers built on Bitcoin could have on the global economy.

Moreover, the focus is not just on large-scale financial instruments or trading, but on practical, everyday applications. It’s also quite personal. Luongo was famously turned down when he attempted to use his Bitcoin holdings to secure a mortgage, triggering his fascination with unlocking the same potential for others. "We want people who are actually building their lives on the Bitcoin network," he said, emphasizing the practical utility of their projects.

But as exciting as new ways to leverage crypto for everyday use cases may seem, Luongo admitted they aren’t without risk. "It only takes one really bad fall from potentially a malicious player to poison the whole space," he warned. Education and careful risk management will be crucial as the industry moves forward. But if there is one luxury builders seeking to replicate DeFi on bitcoin may have, it’s that they’ve seen many experiments in the Ethereum and traditional finance world to build off of.

"We're not just recycling TradFi ideas, but using Bitcoin's strength as hard money to secure new networks."

Coinage members can watch our full interview with Thesis founder Matt Luongo above. To support our community-owned outlet, own it with us, and unlock other exclusive benefits, mint one of our Membership Passes today! Chat with Coinage in our Discord.