> 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/stacks-vaults/zvstbtc-vault.md).

# zvstBTC Vault

Learn how the zvstBTC Vault uses stBTC collateral and sBTC borrowing to target amplified Bitcoin Staking yield.

## zvstBTC Vault

The zvstBTC Vault is Zest Protocol’s first Stacks Vault. It automates a levered Bitcoin Staking strategy built around Stacking DAO’s stBTC.

Users deposit a supported Bitcoin asset and receive zvstBTC shares. The vault posts stBTC as collateral on Zest Protocol, borrows sBTC against it and stakes the borrowed sBTC into more stBTC.

The strategy targets 6–8% APY. Realised returns depend on Bitcoin Staking yield, borrowing costs, utilisation, fees and market conditions.

### Supported deposits

The vault supports three entry paths:

* stBTC: deposited directly into the vault.
* sBTC: staked into stBTC through Stacking DAO before entering the strategy.
* BTC: first converted through the supported sBTC peg and staking path before entering the strategy as stBTC.

Every depositor receives zvstBTC shares based on the value of the stBTC entering the vault and the current share price.

### How the strategy works

#### 1. Post stBTC as collateral

The vault posts the deposited stBTC as collateral on Zest Protocol’s Stacks lending market.

#### 2. Borrow sBTC

The vault borrows sBTC against that stBTC within its configured risk limits.

#### 3. Stake the borrowed sBTC

The borrowed sBTC is staked through Stacking DAO into more stBTC.

#### 4. Repeat

The new stBTC is added as collateral, allowing the strategy to repeat the borrowing and staking loop within its configured limits.

Each loop increases the stBTC position earning Bitcoin Staking yield. The strategy’s net return is the yield earned on that larger position minus borrowing costs, fees and other strategy expenses.

### How zvstBTC accrues value

zvstBTC is the share token representing a depositor’s proportional position in the vault.

Returns are reflected in the vault’s net asset value and therefore in the value of each zvstBTC share. The strategy does not distribute separate reward payments that users need to claim.

### Risk controls

The vault uses controls including a deposit cap, collateral and borrowing limits, exchange-rate checks, onchain timelocks and emergency pause functions.

These controls are intended to manage risk but do not eliminate it. Depositors remain exposed to smart-contract, liquidation, liquidity, oracle, stBTC and Bitcoin Staking risks.

### Withdrawals

Withdrawals use a request, cooldown and claim process so the vault can reduce its levered position in an orderly way.

Payouts are made in stBTC. Users who want sBTC can redeem their stBTC through Stacking DAO’s supported redemption process.

## Learn More

* [Architecture](/start/stacks-vaults/zvstbtc-vault/architecture.md): how the vault is built
* [Deposits and Withdrawals](/start/stacks-vaults/zvstbtc-vault/deposits-and-withdrawals.md): the full user guide
* [How the Yield Works](/start/stacks-vaults/zvstbtc-vault/yield.md): the looping strategy, NAV, and fees