Binance Labs, the venture capital division and incubator of Binance, has invested in Zest Protocol
Existing solutions have largely depended on centralized entities, with opaque lenders or a federation of committees and trusted custodians: this approach has always generated additional fees that make interactions with lending protocols less profitable.
Zest Protocol leverages upcoming Stacks blockchain upgrades called “Nakamoto” and “sBTC” to create a native Bitcoin lending experience. Using sBTC's unique peg-in transfer format, users deposit BTC by completing a native Bitcoin transaction to fund their balance on Zest Protocol. They can then engage in lending or yield generation activities. To prepare for the launch of sBTC, Zest Protocol's lending infrastructure is currently live on the Stacks mainnet with the Stacks Marketplace.
The protocol will include two types of BTC liquidity pools: Earning Pools, through which users will earn a return on their BTC as liquidity providers, and Borrowing Pools, which allow users to leverage their BTC to borrow. Zest Protocol's BTC yield pools will rely on pool delegates as credit experts, who will perform in-depth checks, manage liquidity pool rates, and agree terms with borrowers.
Yi He, Co-Founder of Binance and Director of Binance Labs, said: “Zest Protocol’s technology meets the needs of Bitcoin holders and borrowers, unlocking Bitcoin’s potential for programmability and interoperability. Binance Labs is constantly on the lookout for pioneers who are shaping the industry, and we can't wait to see the boost Stacks' Nakamoto upgrade will add to Zest Protocol's growth. »
“We are excited to work with Binance Labs to redefine Bitcoin lending. We plan to realize the much-anticipated transfer of Bitcoin lending markets to the blockchain, where they belong,” said Tycho Onnasch, founder of Zest Protocol.
###
About Zest Protocol
Zest Protocol is a lending protocol designed for Bitcoin, which exists to redefine lending of this token. The protocol aims to create a dynamic ecosystem for borrowing and lending BTC assets. Visit www.zestprotocol.com to learn more.
About Binance Labs
As the venture arm and accelerator of Binance, Binance Labs is now worth over $10 billion. Its portfolio includes 250 projects in more than 25 countries on six continents and its return on investment rate is greater than 14x. Fifty of the companies in the Binance Labs portfolio are projects that participated in our incubation programs. Subscribe to Binance Labs Profile X to learn more.
Disclaimer: The information provided in this article is for general information purposes only and does not constitute investment advice, endorsement, analysis or recommendations regarding any financial instruments, investments or issuers. This article may contain forward-looking statements which, by their nature, are subject to risks and uncertainties. Investing in crypto and DeFi projects carries significant risks, including the loss of all invested funds. This article does not take into account the investment objectives, financial situation or specific needs of any specific person. Everyone is encouraged to consult their legal and financial advisors before making any investment decision.