Introducing Zest Protocol Stacks markets

Zest Protocol is launching lending markets on Stacks as first step on the path to redefine BTC lending.


minute read

February 26, 2024

Tycho Onnasch

Zest Protocol is an on-chain lending protocol, built for Bitcoin. The protocol strives to create a vibrant borrowing and lending ecosystem around BTC the asset. To make this possible, the Zest Protocol team spent years working on the Stacks L2 (specifically sBTC which will launch in the middle of 2024). With the recent interest in Stacks and Bitcoin L2s we saw an opportunity to put the Zest Protocol smart contracts to work before sBTC goes live: introducing the Stacks market.

Zest Protocol Stacks markets

Zest Protocol Stacks market is the first money market protocol on Stacks and uses the core contracts that we’ll use to enable BTC lending in the middle of 2024. Stacks market’s design is modelled on Aave v3 with some small differences to accommodate for low liquidity environments.

The first assets listed are Stacking DAO’s stSTX and Allbridge’s aeUSDC. stSTX is currently the best collateral in the Stacks ecosystem, while aeUSDC is the first bridged stablecoin on Stacks by a reputable provider with a long history of bridging assets. To get started, supply some stSTX and hit borrow on aeUSDC. Or bridge over some USDC over Allbridge and earn yield.

Zest Protocol Stacks market is on closed mainnet right now and will be opened to the public soon. aeUSDC is currently configured with a borrow cap of $200k, meaning that maximum $200k can be borrowed on Zest Protocol Stacks market today. Once aeUSDC has deeper on-chain liquidity, this cap will progressively be raised. 

The Stacking DAO points system is active for stSTX on Zest Protocol. 1 stSTX on Zest Protocol earns 50% more points than idle stSTX. The supply cap for stSTX is 5m, so a lot of points can be earned.

We’re currently running risk analyses on other assets in the Stacks ecosystem. If you’d like to see new assets listed as collateral or borrowable assets, let us know on discord.

Access Stacks market here:

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Written by
Tycho Onnasch
February 26, 2024

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