✨🌐⚙️NEW SYSTEM ALLOWS LOANS USING $BTC AS COLLATERAL, DIRECTLY FROM YOUR WALLET ˗ˋˏ🤑ˎˊ˗
✎𓂃Zest Protocol deployed on mainnet a new way to use BTC as collateral to borrow USDC without taking the Bitcoin out of its own network.
It works like this:
NATIVE BTC → VAULT ON BITCOIN L1 → USDC ON ETHEREUM
The BTC goes into a self-custodied Taproot vault on Bitcoin’s base layer.
Then, the vault’s state is represented on Ethereum, where contracts enable originating the loan in USDC.
⚠️The Most Important Detail 👇
✅ no WBTC
✅ no bridge
✅ no handing the BTC over to a custodian
✅ each vault holds only that user’s BTC
Bitcoin remains locked on its own network throughout the operation.
The proposal changes an old DeFi logic:
Instead of moving Bitcoin to another blockchain, the infrastructure moves the information about the collateral.
But we’re still early.
⚠️ The current demo limits positions to 0.001 BTC per wallet, and the fully verified version via BitVM is still a future step.
Zest has already operated a credit market in the Stacks ecosystem that, according to the company itself, surpassed $100 million in TVL at its peak.
If this architecture scales, BTC could gain a new role:
store of value + productive collateral.
↳Can Bitcoin ▹$BTC ▹ become DeFi’s main collateral without leaving its own network?
#bitcoin.” #BTC☀️ #defi
✎𓂃Zest Protocol deployed on mainnet a new way to use BTC as collateral to borrow USDC without taking the Bitcoin out of its own network.
It works like this:
NATIVE BTC → VAULT ON BITCOIN L1 → USDC ON ETHEREUM
The BTC goes into a self-custodied Taproot vault on Bitcoin’s base layer.
Then, the vault’s state is represented on Ethereum, where contracts enable originating the loan in USDC.
⚠️The Most Important Detail 👇
✅ no WBTC
✅ no bridge
✅ no handing the BTC over to a custodian
✅ each vault holds only that user’s BTC
Bitcoin remains locked on its own network throughout the operation.
The proposal changes an old DeFi logic:
Instead of moving Bitcoin to another blockchain, the infrastructure moves the information about the collateral.
But we’re still early.
⚠️ The current demo limits positions to 0.001 BTC per wallet, and the fully verified version via BitVM is still a future step.
Zest has already operated a credit market in the Stacks ecosystem that, according to the company itself, surpassed $100 million in TVL at its peak.
If this architecture scales, BTC could gain a new role:
store of value + productive collateral.
↳Can Bitcoin ▹$BTC ▹ become DeFi’s main collateral without leaving its own network?
#bitcoin.” #BTC☀️ #defi
