Zest Protocol Unveils Automated Yield Strategies with Stacks Vaults

Zest Protocol has announced the launch of Stacks Vaults, a new layer built on top of its lending markets. This innovation will allow users to deposit a single asset into an automated strategy that manages yield on their behalf.

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

Zest Protocol's founder, Tycho Onnasch, stated, 'Lending markets were the foundation. Vaults are what gets built on top.' He added that with Stacks Vaults, a holder can deposit a single asset and the strategy will run itself, making it easier to earn optimized yield without actively managing positions across markets.

The launch of Stacks Vaults marks the evolution of Zest Protocol from a lending market into yield infrastructure. Additional vaults with different assets and strategies are expected to follow, each built on the same automated foundation.