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Zest Protocol
Zest Protocol is a Bitcoin-focused lending protocol that lets BTC holders earn yield on their Bitcoin and borrow stablecoins against it. It operates the Stacks Market, live since 2024 as one of the largest DeFi money markets on a Bitcoin L2, and is launching Bitcoin Collateral Vaults, a BitVM-powered market enabling self-custodial BTC-backed loans on EVM chains without wrapping or bridging. Its clients are retail and institutional Bitcoin holders and DeFi users seeking yield and liquidity against BTC and Stacks assets.
George Town, KY
Description
Zest Protocol Labs is a blockchain software development company operating Zest Protocol, a lending and borrowing market originally built for the Stacks network and now expanding to Bitcoin's base layer. Its Stacks Market, live since March 2024, allows users to deposit canonical Stacks assets such as sBTC, STX, and stSTX to earn yield and to borrow stablecoins like USDCx and USDh against overcollateralized positions; it has processed over 1,500 liquidations with zero bad debt and reached $100M+ peak TVL. The upcoming Bitcoin Collateral Vaults product, powered by BitVM, will let users borrow stablecoins on EVM chains while their BTC remains locked and self-custodied on the Bitcoin base layer, without wrapping, bridging, or custodians. The protocol is supported by its native ZEST token, traded on major centralized and decentralized exchanges, and was seeded with a $3.5M round led by Draper Associates with participation from Binance Labs, Flow Traders, Trust Machines, and others. The team, incubated by Trust Machines and involved in building the Stacks Nakamoto upgrade and sBTC, focuses on serving Bitcoin holders and institutions seeking to productively deploy BTC through lending and borrowing.Grant Funding
VC Funding
None
2024
$0
$7M