Bitcoin Borrowing Is Moving Native 🍋
$AAVE made borrowing against crypto collateral familiar. Zest is now testing how that model can work with native Bitcoin.
Its Bitcoin Collateral Vaults mainnet demo lets users deposit BTC into an individual Taproot vault on Bitcoin L1 and borrow real USDC on Ethereum.
The Bitcoin remains on its native network throughout the loan. It is never wrapped, bridged or pooled with another depositor’s coins.
This is the part I find compelling. Liquidity can come from the market where DeFi already exists while the collateral stays secured on Bitcoin.
Each demo position is capped at 80 USD of BTC, allowing users to test the complete lifecycle with limited exposure.
If the model scales beyond the demo, Zest could provide the borrowing infrastructure native Bitcoin has been missing.
#Bitcoin #DeFi
$AAVE made borrowing against crypto collateral familiar. Zest is now testing how that model can work with native Bitcoin.
Its Bitcoin Collateral Vaults mainnet demo lets users deposit BTC into an individual Taproot vault on Bitcoin L1 and borrow real USDC on Ethereum.
The Bitcoin remains on its native network throughout the loan. It is never wrapped, bridged or pooled with another depositor’s coins.
This is the part I find compelling. Liquidity can come from the market where DeFi already exists while the collateral stays secured on Bitcoin.
Each demo position is capped at 80 USD of BTC, allowing users to test the complete lifecycle with limited exposure.
If the model scales beyond the demo, Zest could provide the borrowing infrastructure native Bitcoin has been missing.
#Bitcoin #DeFi
