Zest said BTCz will gradually decentralize, reducing its reliance on any authority or central entity for control.
Zest Protocol, a fast-growing decentralized protocol backed by major investors like Binance Labs and Tim Draper, is expanding its services with the launch of BTCz, a digital asset created to enable users to stake their Bitcoin (BTC) to earn rewards.
In a press release issued on Thursday, the protocol said that users can earn yields on their BTC holdings by staking the crypto assets on Babylon Protocol, a blockchain network designed to ensure that users remain in control of their assets while earning a yield.
A Secured Yield Bearing Token on Bitcoin
Babylon was introduced into the crypto market on August 22, and it has already reached a milestone of 1,000 BTC stacked on the platform. The platform leverages the unique security features of a Bitcoin layer2 network called Stacks to safeguard users’ assets. Using Stacks L2, Babylon ensures that every BTC staked is verified directly on the Bitcoin blockchain without relying on outside data sources or oracles.
Zest believes that with the rollout of the BTCz token, the platform will attract even more users in no time. The decentralized network explained that there are more than ten digital assets with similar functionality as BTCz; however, what makes the token stand out is the integration of Stacks. The digital asset is designed to leverage the innovative features of Stack to “offer a much greater degree of security to its holders”.
According to Zest, its use of Babylon and the security of Stacks positions BTCz as one of the most secure yield-bearing Bitcoin assets in the DeFi ecosystem.
Yield-bearing Cousin to Stacks’ sBTC
Zest said it is focused on making decentralized finance more accessible to everyday Bitcoin holders, allowing them to earn rewards without giving up their assets to third parties or intermediaries like other custodial platforms. In conventional setups, users must hand over control of their BTC to an exchange or service provider, exposing them to the risks of hacking or mismanagement.
Zest also disclosed that its BTCz will be a yield-bearing cousin to Stacks’ sBTC token, which will be launched later this year. The protocol’s founder, Tycho Onnasch, believes that by combining BTCz with the upcoming sBTC, the platform will offer one of the most comprehensive solutions for Bitcoin holders seeking yield.
“A yielding BTC asset like BTCz paired with sBTC will be critical to securing Bitcoin DeFi adoption, built by the engineers behind Stacks’ sBTC. This is just the start of the rollout of our BTC yield products on Zest Protocol Earn.”
Additionally, Zest said BTCz will gradually decentralize, reducing its reliance on any authority or central entity for control. The token will adopt the decentralized structure of Stacks sBTC, which operates without central oversight. Eventually, users will be able to stake sBTC to earn rewards or interest through BTCz.
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Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
