Zest Protocol's Leveraged Bitcoin Staking Vault Goes Live on Stacks

Zest Protocol has launched its new leveraged Bitcoin staking vault on Stacks, allowing users to potentially earn higher yields on their Bitcoin assets.

The vault uses a strategy called 'leveraging,' where deposited Bitcoin is used as collateral to borrow more tokens, which are then recycled into staking positions to amplify the yield. This can increase the potential return from 2.6% APY (annual percentage yield) to 6-8% APY.

The vault's architecture relies on two key assets: stBTC, issued by Stacking DAO, and sBTC. Zest Protocol has a track record of zero bad debt since launching its lending market in March 2024, with a peak total value locked of over $100 million.