Zest Protocol

Zest Protocol is a Bitcoin lending protocol on Stacks for earning yield on and borrowing against BTC.

Category: DeFi & Yield
Used for: Lending
Borrowing

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About Zest Protocol

Zest Protocol is designed as a capital layer for Bitcoin, allowing users to make their BTC productive without moving it off the Bitcoin network. It provides a system where Bitcoin collateral stays locked on Bitcoin while its value is utilized on destination chains.

The protocol offers Bitcoin Collateral Vaults as well as a suite of DeFi products on Stacks, which includes lending markets, automated yield strategies, and token swaps.

Key features

Bitcoin Collateral Vaults allow users to deposit BTC into self-custodial Taproot vaults on the Bitcoin base layer.
BitVM technology enables Bitcoin L1 to verify lending market states on other blockchains using fraud proofs.
Withdrawals of BTC can be processed programmatically without third-party interference.
Positions can be opened, managed, and closed using standard Bitcoin keys.
The protocol supports partial withdrawals, top-ups, and soft liquidations.
Collateralized BTC remains unpooled and isolated to the individual user.
The platform offers a product suite on Stacks for lending, automated yield vaults, and swaps.

What it is used for

Borrow stablecoins on destination chains using BTC held on the Bitcoin base layer as collateral.
Earn automated yield through Stacks yield vaults.
Swap tokens directly through the Stacks Swap interface.
Recover underlying BTC programmatically even if the destination chain encounters issues.

What it does

Used for

Who it is for

Kind of tool

Exchange

Platforms

Things to know

Bitcoin collateral does not need to be wrapped into another token or given to a centralized custodian.
Access and recovery of vault assets are handled entirely via a standard Bitcoin key.
ZEST is the native token of Zest Protocol, and contract addresses must be verified before interacting.

Verification and freshness

Not verified yet.
Last updated on November 8, 2026.

Alternatives to Zest Protocol

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Babylon

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Compound

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Put stablecoins to work on Sky.money: earn yield via the Sky Savings Rate (sUSDS), curated Vaults, and SKY staking. Swap USDC↔USDS 1:1, zero fees.