Zest Protocol Brings Automated Yield Strategies to Bitcoin-Native Finance with Stacks Vaults

Zest Protocol has announced Stacks Vaults, a new vault layer that will allow users to deposit a single asset into an automated strategy that manages yield on their behalf. This marks the evolution of Zest Protocol from a lending market into yield infrastructure.

The first Stacks Vault will be built around stBTC, the liquid staking Bitcoin token introduced by Stacking DAO recently. The vault will use stBTC as collateral to borrow sBTC, stake the borrowed Bitcoin into stBTC, and repeat the process to compound yield on top of base Bitcoin Staking rewards.

The founder of Zest Protocol, Tycho Onnasch, said 'Lending markets were the foundation. Vaults are what gets built on top.' He added that every yield source on Stacks becomes a strategy that can be automated with Stacks Vaults.