Zest Protocol Raises $3.5M in Funding
Zest Protocol, a groundbreaking Bitcoin lending startup, has secured $3.5 million in funding, spearheaded by esteemed investor Tim Draper. This funding round, which saw participation from prominent investors like Binance Labs, Flow Traders, and Trust Machines, indicates a rising interest in crypto lending despite regulatory hurdles faced from entities like the U.S. Securities and Exchange Commission (SEC).
Zest Protocol’s Innovative Approach
Zest Protocol, comprising a small team of six individuals, has managed to secure $3.5 million in funding, with Draper Associates led by Tim Draper taking the lead in the investment endeavor. This infusion of capital will bolster Zest’s objective of empowering Bitcoin (BTC) holders, enabling them to utilize their assets on-chain to yield profits.
- Zest Protocol focuses on facilitating Bitcoin lending through on-chain mechanisms.
- Users have the opportunity to earn yield from their BTC holdings without the need for traditional financial intermediaries.
Zest Protocol’s Vision for the Future
Zest Protocol makes use of Bitcoin layer 2 technology provided by Stacks, along with the sBTC asset pegged 1:1 to Bitcoin, to establish a lending platform that operates within the Bitcoin network. Users are allowed to deposit bitcoin utilizing sBTC on the Stacks mainnet to partake in lending activities and earn passive income without having to liquidate their bitcoin holdings.
- Founder Tycho Onnasch emphasizes the significance of Bitcoin layer 2 solutions like Stacks in unlocking decentralized finance (DeFi) opportunities for Bitcoin users.
- Unlike Ethereum, which conventionally serves as the host for DeFi applications, Bitcoin’s layer 1 faces limitations that are effectively addressed by Stack technology.
Hot Take: Embracing a Sustainable Approach
As the crypto landscape continues to evolve, Zest Protocol’s innovative approach to Bitcoin lending stands out for its focus on sustainability and maturity, setting it apart from previous high-yield offerings in the crypto industry. By leveraging Bitcoin layer 2 technology and sBTC assets, Zest Protocol is paving the way for a more decentralized and inclusive financial ecosystem within the realm of Bitcoin.
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