Key Points
- Zest Protocol, supported by Binance Labs and Tim Draper, introduces BTCz to allow Bitcoin holders to earn rewards.
- BTCz users can stake their Bitcoin on Babylon Protocol to earn yield.
Zest Protocol, a rapidly growing decentralized protocol backed by significant investors like Binance Labs and Tim Draper, is broadening its offerings with the introduction of BTCz. This new digital asset is designed to provide Bitcoin holders with an opportunity to stake their Bitcoin and earn rewards.
The protocol announced on Thursday that users can generate yields on their Bitcoin holdings by staking the cryptocurrency on Babylon Protocol. This blockchain network is engineered to ensure that users maintain control of their assets while earning a yield.
Bitcoin’s Secure Yield Bearing Token
Babylon entered the crypto market on August 22 and has already achieved a milestone of 1,000 BTC stacked on the platform. The platform uses the unique security features of a Bitcoin layer2 network called Stacks to protect users’ assets. Babylon, through Stacks L2, verifies every staked BTC directly on the Bitcoin blockchain, eliminating reliance on external data sources or oracles.
Zest anticipates that the launch of the BTCz token will attract more users swiftly. The decentralized network noted that while there are over ten digital assets with similar functionality to BTCz, what sets the token apart is the integration of Stacks. This digital asset is designed to leverage the innovative features of Stack to provide its holders with enhanced security.
Zest asserts that its use of Babylon and the security of Stacks positions BTCz as one of the most secure yield-bearing Bitcoin assets in the DeFi ecosystem.
Stacks’ sBTC’s Yield-bearing Counterpart
Zest is dedicated to making decentralized finance more accessible to everyday Bitcoin holders, enabling them to earn rewards without surrendering their assets to third parties or intermediaries like other custodial platforms. In traditional setups, users must relinquish control of their Bitcoin to an exchange or service provider, exposing them to hacking or mismanagement risks.
Zest also revealed that its BTCz will be a yield-bearing counterpart to Stacks’ sBTC token, set to be launched later this year. The protocol’s founder, Tycho Onnasch, believes that by combining BTCz with the forthcoming sBTC, the platform will offer one of the most comprehensive solutions for Bitcoin holders seeking yield.
The platform also stated that BTCz will gradually decentralize, reducing its dependence on any authority or central entity for control. The token will adopt the decentralized structure of Stacks sBTC, which operates without central oversight. Eventually, users will be able to stake sBTC to earn rewards or interest through BTCz.
