Overview of Mezo Testnet BTC Collateral and Reward System

Mezo's testnet enables users to lock up Bitcoin (BTC) as collateral, allowing them to access rewards and participate in decentralized finance (DeFi) activities without selling their BTC. The system offers incentives, often in platform-specific tokens, as rewards for supplying collateral.

The testnet tracks collateralized BTC and borrowed amounts, ensuring platform liquidity. It also includes "zero address" minting events, where tokens are minted and distributed to users for their participation. This setup provides a sandbox for testing BTC collateralization, loan mechanisms, and reward distribution before launching on the mainnet.