Stacks

sBTC

Flow

Bitcoin

<p>The post <a href="https://coinpedia.org/news/zest-protocol-secured-3-5m-funding-from-tim-draper-for-on-chain-bitcoin-lending/" rel="noopener noreferrer nofollow">Zest Protocol Secured $3.5M Funding From Tim Draper for On-Chain Bitcoin Lending</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>Zest Protocol, a pioneering Bitcoin lending startup, has successfully raised $3.5 million in funding led by renowned investor Tim Draper. This funding round, which included participation from key investors such as Binance Labs, Flow Traders, and Trust Machines, highlights a growing interest in crypto lending despite regulatory challenges from the U.S. Securities and Exchange Commission (SEC).</p>
<h2 class="wp-block-heading" id="h-zest-raises-3-5m-in-funding">Zest Raises $3.5M in Funding</h2>
<p><a href="https://www.zestprotocol.com/" rel="noopener noreferrer nofollow">Zest Protocol</a>, a startup with a small team of six, has successfully raised $3.5 million in funding, with Tim Draper’s Draper Associates leading the investment round. The investment will support Zest’s mission to empower Bitcoin (BTC) holders by allowing them to leverage their assets on-chain to generate yield.&nbsp;</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Zest Protocol raises $3.5m Seed round to redefine Bitcoin lending<br><br>Led by <a href="https://twitter.com/drapervc?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@drapervc</a>, with participation from <a href="https://twitter.com/BinanceLabs?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@BinanceLabs</a>, <a href="https://twitter.com/FlowTraders?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@FlowTraders</a>, <a href="https://twitter.com/trustmachinesco?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@trustmachinesco</a>, <a href="https://twitter.com/goasymmetric?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@goasymmetric</a> and more <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f91d.png" alt="🤝" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://t.co/L1PP6hmWN6" rel="noopener noreferrer nofollow">pic.twitter.com/L1PP6hmWN6</a></p>— Zest Protocol <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f34a.png" alt="🍊" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@ZestProtocol) <a href="https://twitter.com/ZestProtocol/status/1790015192904212549?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 13, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>The core focus of Zest Protocol is to facilitate Bitcoin lending through on-chain mechanisms, offering users the opportunity to generate yield from their BTC holdings without relying on traditional financial intermediaries.&nbsp;</p>
<p>This approach aligns with the ethos of decentralized finance (DeFi), where peer-to-peer transactions occur directly on the blockchain.</p>
<h2 class="wp-block-heading" id="h-zest-protocol-bigger-vision-nbsp">Zest Protocol Bigger Vision&nbsp;</h2>
<p>Zest Protocol leverages <a href="https://coinpedia.org/news/bitcoins-layer-2-altcoins-on-fire-as-btc-price-hits-25-month-high/" rel="noopener noreferrer nofollow">Bitcoin layer 2 technology</a> by Stacks and the sBTC asset (pegged 1:1 to Bitcoin) to create a lending platform native to the Bitcoin network. However, users can deposit bitcoin using sBTC on the Stacks mainnet to participate in lending activities and earn passive income without selling their bitcoin holdings.</p>
<p>Tycho Onnasch, the founder of Zest Protocol, highlights the importance of Bitcoin layer 2 solutions like Stacks in unlocking <a href="https://coinpedia.org/price-analysis/top-defi-tokens-to-maximize-your-profits-during-the-upcoming-bull-rally/" rel="noopener noreferrer nofollow">decentralized finance</a> (DeFi) opportunities for Bitcoin. Unlike Ethereum, which traditionally hosts DeFi applications, Bitcoin’s layer 1 has limitations that Stack technology overcomes.</p>
<p>Zest’s approach to lending aims for sustainability and maturity, distinguishing itself from previous high-yield offerings in the crypto industry.&nbsp;</p>

Zest Protocol Secured $3.5M Funding From Tim Draper for On-Chain Bitcoin Lending

Table of Contents

CoinPedia News

Other articles published on May 13, 2024

Cryptocurrency: 3 Most Affordable Altcoins Right Now to Turn $1000 into $10,000 by August 2024

Rain Exchange Upholds User Safety Through Regulatory Compliance Amid Security Breach

Uniswap Founder Slams Biden Administration’s Crypto War Amid Campaign

Crypto Giant Susquehanna Plows $1.3 Billion into Bitcoin ETFs

Merit Circle Coin Catalyzes P2E Gaming Economy

Crypto investment products see first inflows in over a month

Join our free newsletter for daily crypto updates!