Sunsetting BTCz as Zest Evolves

The Zest BTCz product is being phased out as part of a broader protocol shift.

With Stacks now the leading Bitcoin Layer 2 by BTC supply—and over 500 sBTC already deposited on Zest—the team is shifting focus to sBTC and the Borrow markets.

As a result, BTCz is being deprecated to make room for this new direction.

However, a new version of BTCz could be introduced in a future iteration, once BTC staking becomes possible on Stacks with the introduction of Dual Staking.

Here’s everything you need to know about how to claim back your BTC used to mint BTCz.

How to Claim Liquidity Back from BTCz

First, launch the Zest app and navigate to the BTCz section.

By connecting the Stacks wallet holding your BTCz tokens, you’ll gain access to the updated interface to claim your funds.

Clicking the Withdraw button will burn your BTCz and automatically send sBTC to your wallet—typically within a few seconds, as the transaction is confirmed in the next Stacks block.

The team identified four failed BTCz deposits during the protocol’s lifetime—instances where BTC was sent, but BTCz was never claimed. These unclaimed funds have been refunded to the original Bitcoin deposit addresses:

- 3cf57d83c946a421ef0c89ed9a11ef37cffb69210e7b3a032072ec0dfc890c0e

- 39ac6822e7f039b5ce7743d616d258649acce46271bea4f548b467b8c78fb199

- 756470acf07aaecc5d3ecda155124288e11dcdf380da7a990269e44a6769ed5e

- 791ad2c088dde9ba9286667a5ae7bc517fe3f6be2acbc8ffd0f751a0069ed023

What's Next?

Once you complete the withdrawal, your sBTC is immediately usable for the same purposes you originally minted BTCz—earning yield, using it as collateral, and more.
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For example, you can deposit sBTC on Zest to earn 4.09% APY passively, and then use it as collateral to borrow other assets and generate additional yield.
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One of the most popular strategies today is using sBTC as collateral to borrow the USDh stablecoin, which can be staked on Hermetica for up to 25% APY.

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