Zest Protocol's Mainnet Demo Brings Native BTC to Ethereum Lending

Zest Protocol has launched a mainnet demo of its Bitcoin Collateral Vaults system, allowing native $BTC to back $USDC loans on Ethereum. This demo is a controlled test phase with collateral caps, and it's not an unrestricted production launch.

The system keeps every unit of $BTC inside self-custodial Taproot vaults on Bitcoin itself, using a structure built around Taproot. This means that $BTC remains in place and never gets wrapped or bridged to Ethereum.

User deposits $BTC into individual vaults while Ethereum smart contracts manage the $USDC borrowing side. Collateral destinations, including liquidation and repayment paths, are pre-authorized by depositors when a vault is created.