Lending software Zest Protocol has formally launched its first lending markets on Bitcoin’s (BTC) layer-2 (L2) platform Stacks, permitting BTC holders to take part in on-chain cash markets. This growth comes forward of Stacks’ Nakamoto improve, set to spice up the Bitcoin finance (BTCfi) ecosystem constructed utilizing its infrastructure.
“A resilient capital market can be a significant factor in Bitcoin reaching the following billion customers,” stated Muneeb Ali, co-founder and CEO of Belief Machines, who incubated Zest Protocol in its early stage. “The workforce at Zest is mission-driven to make Bitcoin a really viable international reserve asset within the subsequent decade. This Stacks market launch helps them make step one in direction of redefining Bitcoin lending.”
The anticipation round Runes, a brand new protocol for Bitcoin set to go stay after the halving occasion, is capturing the eye of traders. BTCfi ecosystem surpassed $1.3 billion in whole worth locked (TVL), and Stacks symbolize over 10% of it, in keeping with on-chain knowledge aggregator DefiLlama.
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“Whereas TVL on Stacks remains to be small, launching lending markets on Stacks supplies us with the chance to deploy good contract infrastructure that can be used for BTC lending in a manufacturing surroundings,” commented Zest Protocol co-founder Tycho Onnasch. “The rising Stacks DeFi ecosystem doesn’t but have many alternatives for leverage. Zest Protocol will present these whereas laying a strong basis for our launch of BTC lending markets later this 12 months.”
Acknowledged as among the finest Bitcoin mortgage platforms by Blockworks in 2023, Zest Protocol’s dedication to safety and innovation is underscored by its profitable completion of a second good contract audit with Coinfabrik in 2024, following an audit by Least Authority in 2023.
