Binance Labs, the venture capital and incubation arm of Binance, has invested in Zest Protocol, an on-chain Bitcoin lending infrastructure that allows users to lend or borrow native Bitcoin without permission with transparent returns.
Most existing solutions rely on centralized entities, either opaque lenders or consortiums of trusted committees and custodians, which historically tend to incur additional fees, increasing the cost of interacting with lending protocols.
The Zest Protocol leverages future Stacks Nakamoto and sBTC blockchain upgrades to create a Bitcoin-native lending experience. Users deposit Bitcoin via native Bitcoin transactions using sBTC’s unique Peg-in wire format to top up their Zest Protocol balance, after which they can participate in lending or yield-generating activities. To build momentum for the launch of sBTC, the Zest Protocol’s lending infrastructure is now live on the Stacks mainnet via the Stacks marketplace.
The protocol will contain two types of BTC liquidity pools: yield pools and lending pools. In yield pools, users earn yield from BTC as liquidity providers; in lending pools, users borrow against BTC. Zest Protocol’s BTC yield pool will utilize pool representatives as credit experts. These pool representatives will perform due diligence, manage the interest rates of the liquidity pools, and negotiate terms with borrowers.
Yi He, co-founder of Binance and head of Binance Labs, commented: “Zest Protocol’s technology meets the needs of Bitcoin holders and borrowers, unlocking the potential of Bitcoin’s programmability and interoperability. Binance Labs is always looking for pioneers who can reshape the industry, and we look forward to watching the development of Zest Protocol driven by Stack’s Satoshi upgrade.”
“We are excited to be working together with Binance Labs to pioneer new avenues for Bitcoin lending. Our goal is to complete the long-awaited task of moving Bitcoin lending markets to the chain where they belong,” said Tycho Onnasch, founder of Zest Protocol.
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Zest Protocol Introduction
Zest Protocol is a lending protocol designed specifically for Bitcoin. Zest Protocol exists to open up new avenues for Bitcoin lending. The protocol is dedicated to creating a vibrant lending ecosystem around BTC assets. For more information, visit www.zestprotocol.com
Introduction to Binance Labs
Binance Labs, the venture capital arm and accelerator of Binance, is now valued at over $10 billion. Its portfolio includes 250 projects from over 25 countries across 6 continents, with an ROI of over 14x. 50 of Binance Labs’ portfolio companies are from our incubation program. For more information, follow Binance Labs at X.
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