- 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.
As a seasoned crypto investor with a strong affinity for Bitcoin, I’m excited about the emergence of projects like Zest Protocol that are leveraging layer 2 networks to bring decentralized finance (DeFi) features to the world’s largest cryptocurrency.Bitcoin lending platform Zest secures $3.5 million funding to allow BTC owners to invest their cryptocurrency in on-chain opportunities, earning returns.
The seed raise was led by billionaire investor Tim Draper with participation from Binance Labs, Flow Traders, Trust Machines and others, Zest Protocol announced by email on Monday.
Using the Nakamoto upgrade on Bitcoin’s second-layer platforms, Zest Protocol introduces sBTC (a 1:1 representation of Bitcoin) for seamless lending transactions directly on the biggest blockchain network.
As a financial analyst, I would explain it this way: When users want to utilize the services of Zest Protocol, which is based on the Stacks mainnet, they can use sBTC (stably linked bitcoin) for transferring Bitcoin as collateral. Following this transaction, they will gain access to various opportunities such as lending or generating yields.
“According to Tycho Onnasch, founder of Zest Protocol, Bitcoin L2 platforms such as Stacks are poised to significantly contribute to the expansion of Bitcoin Decentralized Finance (DeFi). On Ethereum, foundational DeFi elements like liquidity pools can be developed, but this capability is absent in Bitcoin’s primary layer. The upcoming Stacks sBTC upgrade represents a pivotal moment for Bitcoin DeFi, as it was intended from its inception.”
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2024-05-13 16:10