What is ZEST
I. Project Introduction
1. What Is Zest Protocol?
Zest Protocol is a Bitcoin-native lending protocol built on Stacks Layer 2 that allows users to earn yield with BTC or borrow assets by collateralizing BTC. The protocol's smart contracts are written in the Clarity language, operate entirely on-chain, and are open-source, with a design inspired by Aave v3. Zest is currently the largest DeFi protocol on Stacks, with over 800 BTC deposited and a peak TVL exceeding $100 million. In May 2026, the protocol further introduced Bitcoin Collateral Vaults, extending lending capabilities from Stacks to the Bitcoin mainnet. This allows users to borrow stablecoins without moving BTC off the Bitcoin network, enabling self-custodied lending.
2. How Does Zest Protocol Work?
Zest Protocol consists of two markets. The Stacks market is built on Aave v3, allowing users to deposit assets like sBTC, STX, and USDC to earn yield or take over-collateralized loans. The default maximum LTV is 50% (70% for sBTC). The Bitcoin market operates through the newly launched Bitcoin Collateral Vaults. Users borrow stablecoins by locking BTC in self-custodial vaults on the Bitcoin chain. The collateral remains on the Bitcoin mainnet throughout the entire process, and users retain custody unless the position is liquidated.
3. Who Founded Zest Protocol?
Tycho Onnasch (Co-Founder): Graduated from the University of Oxford. Involved in research and grants for the Stacks Open Internet Foundation. Former Manager at Trust Machines and Founder of Deedmob. LinkedIn Profile: https://www.linkedin.com/in/tychokoonnasch/.
Fernando Foy (Co-Founder): Previously worked in IT consulting at Objectif Emploi. LinkedIn Profile: https://www.linkedin.com/in/fernando-foy/.
Emil E. (Co-Founder): Holds a Master's degree in Physics from the University of Warwick. Former Engineering Partner at Trust Machines, Full-Stack Developer for Web3 projects, and Data Scientist at HSBC. LinkedIn Profile: https://www.linkedin.com/in/emil-e-49771a145/.
Funding Details: In May 2024, Zest Protocol announced the completion of a $3.5 million seed funding round led by Tim Draper, with participation from Binance Labs, Flow Traders, Trust Machines, and others.
4. $ZEST Tokenomics
$ZEST is the native token of Zest Protocol with a fixed total supply of 1 billion tokens and no inflationary mechanism.
Community (27.83%): Used for airdrops and user incentives;
Ecosystem Development (24.82%): Used for liquidity, partnerships, marketing, exchange listings, etc.;
Investors (22.35%): Backing the investment parties who supported Zest Protocol's early development;
Team (25%): Allocated for core contributors.
Vesting Schedule: Team and Investor tokens are subject to a 1-year lock-up period followed by 3 years of linear unlocking.
5. Timeline of Key Milestones
2022: Zest Protocol is officially founded.
March 2024: Completed security audit and launched the Stacks lending market on mainnet.
In February 2026, Stacks Market V2 launches, introducing Risk Groups.
In May 2026, Bitcoin Collateral Vaults were introduced, and an operational mainnet prototype is now available. This allows users to utilize self-custodial BTC on the Bitcoin L1 as collateral to borrow stablecoins on EVM chains, ending bridging, wrapping, and third-party custody. This rollout is divided into two phases. Phase 1: Utilizes pre-signed transactions to constrain BTC movement; Phase 2: Utilizes BitVM for verification.
II. Token Information
Token name: ZEST(Zest Protocol)
III. Related Links
Website：https://www.zestprotocol.com/
Explorers：https://bscscan.com/token/0x5506599c722389a60580b5213ea1da60d64754a1
Twitter：https://twitter.com/ZestProtocol
Note: The project introduction comes from the materials published or provided by the official project team, which is for reference only and does not constitute investment advice. HTX does not take responsibility for any resulting direct or indirect losses.
