> For the complete documentation index, see [llms.txt](https://docs.zestprotocol.com/start/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.zestprotocol.com/start/what-is-zest-protocol.md).

# What is Zest Protocol?

Zest Protocol is the leading Bitcoin lending protocol. BTC holders earn yield on their Bitcoin and borrow stablecoins against it.

Zest Protocol is the largest lending protocol on Bitcoin L2s, with $100M+ peak TVL and over two years of mainnet history. Built by one of the longest-running team in Bitcoin DeFi, building on Bitcoin since 2020.

Zest Protocol runs two lending markets.

**Bitcoin Collateral Vaults (launching later in 2026)**

A lending market where BTC stays locked on Bitcoin itself. Stablecoins are borrowed on EVM chains against that BTC. No wrapped BTC, no bridge, no custodian, no rehypothecation.

Lending against Bitcoin has always meant giving up custody first: wrapping it into a token or handing it to a custodian. Bitcoin's base layer couldn't verify what happened to collateral elsewhere. BitVM changes that. It lets Bitcoin L1 verify the state of a lending market on another chain, so BTC can back a loan without ever leaving the base layer.

**Stacks Market (live since 2024)**

The Zest Protocol lending market on Stacks, live since March 2024 and proven under real conditions. 1,500+ liquidations executed, zero bad debt. $100M+ peak TVL, 800+ sBTC deposited.

Deposit canonical Stacks assets like sBTC, STX, stSTX to earn yield. Borrow against your collateral with overcollateralised loans.