Bitcoin lending protocol Zest has raised $3.5 million to allow bitcoin (BTC) holders to deploy their property in on-chain and generate yield.
The seed increase was led by billionaire investor Tim Draper with participation from Binance Labs, Move Merchants, Belief Machines and others, Zest Protocol introduced by e mail on Monday.
Zest Protocol makes use of the Nakamoto upgrade by Bitcoin layer 2 Stacks and bridging asset sBTC (pegged 1:1 to bitcoin) to create a lending expertise totally native to the world’s largest blockchain community.
Customers will depend on sBTC to ship bitcoin to fund their steadiness on Zest Protocol, which lives on the Stacks mainnet, and thereafter shall be ready interact in lending or different yield-generating actions.
“Bitcoin L2s like Stacks are set to play a key function in unlocking Bitcoin DeFi,” mentioned Tycho Onnasch, founding father of Zest Protocol. “Not like on Ethereum, the creation of fundamental DeFi primitives reminiscent of liquidity swimming pools isn’t attainable on Bitcoin L1. The Stacks sBTC improve is about to be a watershed second for Bitcoin DeFi, which is what it was designed for from the start.”
