Zest Protocol has recently integrated with Babylon Labs on the Stacks L2. The integration of Zest Protocol with Babylon Labs takes into account the development of BTCz, the securest Bitcoin asset in the market, permitting users to deploy BTC to get a BTC yield.
Zest Protocol’s Integration with Babylon Unveils BTCz to Offer Trustless BTC Staking
The platform disclosed that those holding BTCz can obtain a staking yield via the Babylon Protocol. It reportedly leverages the Stacks L2’s exclusive security properties. Babylon has initiated trustless BTC staking, letting BTC holders get yield via validation of PoS systems without relying on any third party. They carry this out in a non-custodial manner. Mainnet Phase 1 witnessed its launch on the 22nd of August.
At that time, just six blocks reached a capitalization of up to 1000 $BTC. As a part of this integration, Zest Protocol focuses on combining the finest features of the Stacks L2 as well as Babylon. In this way, it intends to enhance the level of security in the Bitcoin staking experience. Stacks, as a prominent Bitcoin L2, offers cutting-edge security features to facilitate Zest Protocol.
The smart contracts of Stacks have the exclusive capability to read the BTC state. It lets the contracts autonomously validate changes to BTC balances. The respective thing allows the Stacks L2-based Bitcoin staking contract to autonomously validate Bitcoin stake on the BTC L1 via the staking protocol of Babylon. In this respect, they do not need to depend on any 3rd party messaging system or oracle.
The Advanced Features of Both Babylon and Zest Protocol Gradually Decentralize to Facilitate the Users
This, along with the trustless design of Babylon establishes BTCz’s foundation as the secure derivative for staked BTC. Additionally, the BTCz of the Zest protocol will gradually decentralize for the creation of a permissionless peg. Consumers will also have the capability to deposit their sBTC tokens to get a yield via BTCz.
Zest Protocol’s founder Tycho Onnasch also commented on this remarkable development. As per him, the impending launch of sBTC in this year’s 4th quarter lets Zest Protocol turn into a yield-bearing cousin of sBTC on Stacks. It will reportedly act as a yield-bearing Bitcoin asset just as BTCz in pair with sBTC.
