> 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/zest-protocol-overview.md).

# Zest Protocol Overview

How Zest Protocol turns Bitcoin from an idle asset into productive capital through Bitcoin Collateral Vaults and its Stacks product suite.

Zest Protocol is the capital layer for Bitcoin, turning Bitcoin from an idle asset into productive capital.

Bitcoin Collateral Vaults let holders borrow stablecoins against BTC or put it to work on any chain that can read a proof. The team has built on Bitcoin since 2021 and previously ran a $100M+ Bitcoin credit market on Stacks.

Explore Zest Protocol’s products below.

## **Bitcoin Collateral Vaults**

Bitcoin Collateral Vaults let BTC remain on Bitcoin while its value works wherever it is needed. Holders lock BTC in a vault on Bitcoin and borrow stablecoins against it on a destination chain.

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.

{% content-ref url="/pages/tu4MI5UuabxPk1wtdavz" %}
[Bitcoin Collateral Vaults](/start/bitcoin-collateral-vaults/introducing-bitcoin-collateral-vaults.md)
{% endcontent-ref %}

## Stacks

Zest Protocol is the DeFi superapp for Stacks, bringing lending, automated yield strategies and token swaps into one product suite.

### Zest Protocol Stacks Market

Stacks Market is the lending market Zest Protocol has operated since March 2024. It has processed $100M+ in peak TVL over two years with zero bad debt and no BTC lost.

Users can supply Stacks assets such as sBTC, STX and stSTX to earn yield, or use them as collateral for overcollateralised loans.

{% content-ref url="/pages/H2yF0RORy0MLJdl0LcFJ" %}
[Stacks Market](/start/borrow/introducing-stacks-market-v2.md)
{% endcontent-ref %}

### Zest Protocol Stacks Vaults

Stacks Vaults package automated yield strategies into single-deposit products. The vault manages the position, rebalancing and compounding for the user.

The first is the Levered Bitcoin Staking Vault. Its strategy posts stBTC as collateral on Zest Protocol, borrows sBTC against it, stakes the borrowed sBTC into more stBTC and repeats within its risk limits. The strategy targets 6–8% APY, depending on realised Bitcoin Staking yield, borrow rates, utilisation and risk parameters. Withdrawals are paid in stBTC.

{% content-ref url="/pages/qyWi0tT0VZj0geogjI7B" %}
[Stacks Vaults](/start/stacks-vaults/introducing-stacks-vaults.md)
{% endcontent-ref %}

### Zest Protocol Stacks Swap

Stacks Swap is a DEX aggregator for Stacks. It compares prices across supported DEXes, can split swaps across pools and routes through intermediate tokens when needed. Every swap settles atomically with onchain minimum-received protection. The best swap experience on Stacks.

{% content-ref url="/pages/vY8msyM4Iym1t7BNKjvA" %}
[Stacks Swap](/start/stacks-swap/introducing-stacks-swap.md)
{% endcontent-ref %}