Zest Protocol, a lending protocol utilizing the Bitcoin layer-2 platform Stacks and sBTC, received $3.5 million seed round from investors.
Billionaire investor Tim Draper led the $3.5 million seed round, which included participation from Binance Labs, Flow Traders, Trust Machines, Asymmetric, Bitcoin Frontier Fund, Gravity Fund, Primal Capital, Hyperithm, Miton Crypto, Tykhe Block Ventures, Elixir Capital, and others.
With the help of the Bitcoin layer-2 platform Stacks and the bridge asset sBTC, Zest is developing a lending protocol that will enable users to earn yields.
Web3 developers are aiming to increase Bitcoin’s usefulness by using the world’s major cryptocurrencies, which is why the news is timely.
Zest Protocol users have the option to finance their accounts with sBTC, a cryptocurrency that shares a 1:1 ratio with Bitcoin.
Zest Protocol’s creator, Tycho Onnasch, commented on the news, saying that Bitcoin L2s, such as Stacks, would be crucial in “unlocking Bitcoin DeFi.”
“On Bitcoin L1, you can’t build simple DeFi primitives like liquidity pools, unlike on Ethereum.” As intended from the start, the Stacks sBTC upgrade is going to mark a turning point for Bitcoin DeFi,” Onnasch said.
While explaining why he invested in Zest, Tim Draper stated his intention to own and use Bitcoin.
A lot of trials have been undertaken in an effort to use BTC effectively, but it hasn’t been simple. “Once BTC deposits open, I’m looking forward to using the product and am excited to see the team at Zest Protocol make it happen,” he stated.
Yi He, the head of Binance Labs and co-founder, claims that the Zest Protocol solves issues for Bitcoin borrowers and holders and makes it possible to program Bitcoin.
“At Binance Labs, we are always looking for pioneers who are changing the game, and we can’t wait to see Zest Protocol take off thanks to Stacks’ Nakamoto upgrade,” Yi He said.