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 improvement comes forward of Stacks’ Nakamoto improve, which goals to spice up the Bitcoin Finance (BTCfi) ecosystem constructed utilizing its infrastructure.
“A resilient capital market might be a key think about Bitcoin reaching the following billion customers,” mentioned Muneeb Ali, co-founder and CEO of Belief Machines, which incubated the Zest Protocol in its early phases. “The staff at Zest is on a mission to make Bitcoin a really viable international reserve asset within the subsequent decade. This Stacks market launch helps them take step one towards redefining Bitcoin lending.”
The anticipation surrounding Runes, a brand new protocol for Bitcoin that may go reside after the halving, is attracting buyers’ consideration. The BTCfi ecosystem surpassed $1.3 billion in whole worth locked (TVL), and Stacks signify greater than 10% of that, in keeping with on-chain information aggregator DefiLlama.
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“Whereas TVL on Stacks remains to be small, launching credit score markets on Stacks provides us the chance to deploy good contract infrastructure that might be used for BTC lending in a manufacturing surroundings,” mentioned Tycho Onnasch, co-founder of Zest Protocol. “The rising Stacks DeFi ecosystem doesn’t but have many alternatives to revenue. Zest Protocol will present this whereas laying a strong basis for our launch of BTC lending markets later this 12 months.”
Acknowledged as one of many prime Bitcoin lending platforms by Blockworks in 2023, Zest Protocol’s dedication to safety and innovation is underscored by the profitable completion of a second good contract audit with Coinfabrik in 2024, following an audit by Least Authority in 2023.