tl;dr
Zest Protocol, utilizing the Nakamoto upgrade by Bitcoin layer-2 Stacks and bridging asset sBTC, aims to bring DeFi features to Bitcoin. The protocol has raised $3.5 million in a seed round led by Tim Draper and involving Binance Labs, Flow Traders, Trust Machines, and others. It enables Bitcoin hol...
Zest Protocol: Utilizing Bitcoin layer-2 Stacks and sBTC for DeFi features
Binance Market Manipulation: CEO's calls, trials, and investments - Zest Protocol's $3.5M Seed Raise: Leveraging Bitcoin L2s for lending and yield generation
Zest Protocol, utilizing the Nakamoto upgrade by Bitcoin layer-2 Stacks and bridging asset sBTC, aims to bring DeFi features to Bitcoin. The protocol has raised $3.5 million in a seed round led by Tim Draper and involving Binance Labs, Flow Traders, Trust Machines, and others. It enables Bitcoin holders to deploy assets on-chain and generate yield, using sBTC to fund balances on the Stacks mainnet for lending and yield-generating activities. The founder, Tycho Onnasch, sees Bitcoin L2s like Stacks as pivotal in unlocking Bitcoin DeFi, particularly with the sBTC upgrade.
Zest Protocol uses the Nakamoto upgrade by Bitcoin layer-2 Stacks and bridging asset sBTC. Projects like Zest are attempting to use layer 2 networks such Stacks to bring DeFi features to Bitcoin that are prominent on other chains like Ethereum.
Bitcoin lending protocol Zest has raised $3.5 million to enable bitcoin (BTC) holders to deploy their assets in on-chain and generate yield. The seed raise was led by billionaire investor Tim Draper with participation from Binance Labs, Flow Traders, Trust Machines and others, Zest Protocol. Zest Protocol uses the Nakamoto upgrade by Bitcoin layer 2 Stacks and bridging asset sBTC (pegged 1:1 to bitcoin) to create a lending experience fully native to the world's largest blockchain network. Users will rely on sBTC to send bitcoin to fund their balance on Zest Protocol, which lives on the Stacks mainnet, and thereafter will be able engage in lending or other yield-generating activities.
“Bitcoin L2s like Stacks are set to play a key role in unlocking Bitcoin DeFi,” said Tycho Onnasch, founder of Zest Protocol. “Unlike on Ethereum, the creation of basic DeFi primitives such as liquidity pools isn’t possible on Bitcoin L1. The Stacks sBTC upgrade is set to be a watershed moment for Bitcoin DeFi, which is what it was designed for from the beginning.”
Read More: Bitcoin L2s Are Poised to Break Out, Stacks Creator Muneeb Ali Says
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