Zest Protocol is a decentralized lending/borrowing platform built on the Stacks network, aiming to expand the applicability of BTC in the DeFi ecosystem.
The project allows users to borrow and lend assets on Stacks, and is preparing to integrate sBTC – a Token backed 1:1 with BTC – after Stacks upgrades to the Nakamoto version in 2024, opening a new direction for DeFi on Bitcoin.
- Zest Protocol is a lending/borrowing protocol on Stacks, aiming to expand the utility of BTC in DeFi .
- The project uses Clarity smart contracts to increase security, transparency and reduce transaction costs.
- Zest Protocol has raised $3.5 million from Draper Associates, Binance Labs, and other major funds.
What is Zest Protocol?
Zest Protocol is a lending/borrowing protocol built on the Stacks network, allowing users to deposit assets to earn yield or Capital against collateral.
The main goal is to bring BTC into DeFi in a more secure and decentralized way.
Currently, Zest Protocol only supports assets in the Stacks system such as STX, aeUSDC... However, when the Stacks network completes the Nakamoto Hard Fork , Zest will support the sBTC Token - a 1:1 collateral asset with BTC, similar to Liquid Network's L- BTC , helping to expand DeFi on Bitcoin .
What is the development goal of Zest Protocol?
The project aims to bring BTC – the asset with the largest Capital in the cryptocurrency market – deeply into the DeFi ecosystem, which is currently dominated by Ethereum and other Layer-2s. This is an important step in the journey to “DeFi ” Bitcoin.
“We want to create a bridge that makes Bitcoin more useful in DeFi without sacrificing its security.”
– Tycho Onnash, Co-founder of Zest Protocol, 2024 (source: Stacks Blog)
The integration of sBTC enables Zest Protocol to allow users to leverage their BTC assets to borrow, lend, or participate in financial activities without leaving the Bitcoin ecosystem.
In addition, exchanges like BingX are also expanding their ecosystems to support DeFi products revolving around Bitcoin, from Derivative trading to Staking and lending, contributing to boosting the demand for BTC in decentralized finance.
This shows that the trend of “DeFi -izing Bitcoin” is gradually becoming a reality, with the participation of both infrastructure platforms such as Zest Protocol and major exchanges in the industry.
What are the highlights of Zest Protocol?
Zest Protocol has two outstanding advantages: using Clarity smart contracts and extremely low transaction fees, especially with wrapped BTC operations on Stacks.
What role does Smart Contract Clarity Vai ?
Clarity is a specialized programming language for Stacks, highly regarded for its transparency and security. All smart contract source code on Zest can be publicly audited, increasing reliability and reducing the risk of exploits.
“Clarity helps developers understand the behavior of smart contracts before deployment, something that other languages cannot do.”
– Muneeb Ali, CEO Stacks Foundation, 2023 (source: CoinDesk)
However, Clarity is still limited because it is only compatible with Stacks, making expansion to other blockchains difficult in the short term.
Are Zest Protocol transaction fees really cheap?
Typically, DeFi transactions involving BTC like wrapped BTC incur high fees due to the complexity of escrow and conversion.
Zest Protocol fixes this by optimizing operations on Stacks, allowing users to wrap BTC without fees.
Low fees are a clear competitive advantage of Zest Protocol, especially when compared to other BTC DeFi platforms on Liquid or Rootstock, which have Medium fees 2–3 times higher.
Zest Protocol Development and Update Roadmap
Zest Protocol has a well-defined development roadmap with multiple milestones, from testnet in 2023 to mainnet in 2024, demonstrating rapid deployment and resilience to security incidents.
| Time | Event |
|---|---|
| August 2023 | Testnet launch |
| February 26, 2024 | Limited mainnet launch |
| April 11, 2024 | Attacked, but no user damage |
| April 16, 2024 | Officially open mainnet to the community |
“The quick and transparent response after the April 2024 incident shows that the Zest team has very good risk management capabilities.”
– DeFi Safety Report, May 2024
The quick recovery from the incident helped Zest regain community trust, especially in the context of DeFi constantly facing hacks that cause hundreds of millions of dollars in damage every year.
Who is the Zest Protocol development team?
Zest's founding team consists of three developers with strong backgrounds in engineering and blockchain, having worked at several large financial and technology organizations.
- Ferrando Foy : Co-founder, in charge of smart contracts, worked at Polytechnique Montréal and Objectif Emploi.
- Tycho Onnash : Co-founder, former contributor at Stacks, Trust Machines, Bitcoin Frontier Fund.
- Emil E : Engineer and co-founder, experienced at HSBC, Pathfinder, Trust Machines.
“Zest Protocol brings together engineers with real-world experience in both finance and blockchain, making the project both secure and practical.”
– Report from Binance Labs, 2024
Who are the investors backing Zest Protocol?
On May 13, 2024, Zest Protocol announced a Capital $3.5 million seed round, led by Draper Associates. Other participating funds include Binance Labs and Asymmetric.
Draper Associates – the famous investment fund founded by Tim Draper – has Capital in Tesla, Coinbase , and OpenAI, showing that Zest has received great trust from the world's leading investors.
| Investors | Vai |
|---|---|
| Draper Associates | Fund leads Seed round |
| Binance Labs | Strategic investor |
| Asymmetric | Bitcoin Ecosystem Support Fund |
What partners does Zest Protocol have?
Zest partners with many projects in the Bitcoin ecosystem such as Stacking DAO , Xverse, and Hiro. These partners focus on developing decentralized infrastructure and wallets, supporting Stacks and sBTC.
Thanks to its wide network of partners, Zest can expand liquidation, enhance security, and increase user accessibility globally.
What are similar projects to Zest Protocol?
In the lending/borrowing space, there are a number of similar projects like ZeroLend and AAVE, both of which focus on optimizing liquidation and user security.
| Project | Network | Outstanding features |
|---|---|---|
| ZeroLend | zkSync, Manta, Blast, Linea | A Fork of AAVE V3, supporting Account Abstraction |
| AAVE | Ethereum, Polygon, Avalanche | TVL reaches 14 billion USD, the largest lending platform in DeFi |
| Zest Protocol | Stacks | Focus on DeFi on Bitcoin, low fees, transparency |
Frequently Asked Questions about Zest Protocol
Does Zest Protocol have its own Token ?
Zest Protocol has not yet Token Issuance . The team said it will announce information when it is ready.
Is Zest Protocol safe?
The project was attacked in April 2024 but no users were harmed. The system was then strengthened and an additional security audit was conducted.
When will Zest Protocol support BTC?
Zest will support trading of sBTC – a Token backed 1:1 with BTC – after Stacks completes the Nakamoto Hard Fork (expected mid-2024).
How is Zest Protocol different from AAVE?
The biggest difference is that Zest focuses on the Bitcoin ecosystem, while AAVE operates on Ethereum and other scaling networks.
Where can I join Zest Protocol?
Users can access the official Zest Protocol website via Stacks wallets (like Xverse or Hiro) to experience lending/borrowing.
