BTCz

Zest Protocol’s BTCz product is currently being phased out as part of a broader protocol refocus.

The team is now prioritising sBTC and the Borrow markets. As such, BTCz will be deprecated in the near future.

When BTC staking becomes possible on Stacks, a new version of BTCz may be introduced in a future iteration.

BTCz is a yield-bearing Bitcoin asset on Stacks, combining the strengths of Stacks and Babylon to form the most secure BTC staking pool to date.

How it works

By staking BTC via Zest Protocol, users receive BTCz—a tokenised representation of their staked BTC on Babylon that can be used across Stacks DeFi.

Once Babylon integrates with Proof-of-Stake networks, BTCz will automatically accrue BTC-denominated yield, increasing in value over time relative to BTC.

BTCz is more secure than other BTC LSTs

BTCz benefits from Stacks' unique security architecture as the leading Bitcoin Layer 2.

Stacks smart contracts can directly read Bitcoin state, allowing them to independently verify changes to Bitcoin balances.

This enables Zest Protocol’s staking contract on Stacks to verify BTC stakes on Bitcoin L1 through Babylon—without relying on third-party oracles or external messaging layers.

Combined with Babylon’s trustless design, this architecture positions BTCz as the most secure staked BTC derivative.

BTCz benefits Stacks

BTCz is designed for BTC holders aligned with Stacks who wish to participate in Babylon staking.

By holding BTCz, users not only benefit from Babylon's future BTC yield, but also contribute to TVL growth on Stacks, enhancing the broader Bitcoin DeFi ecosystem.

What users earn by holding BTCz

Users who held BTCz up to the Babylon TGE were rewarded with sBTC, converted from their BABY airdrop.

How BTCz works before sBTC is live on Stacks

During BTCz bootstrapping, the BTC backing BTCz is held in a programmable MPC custody wallet powered by Cobo MPC (read more).

Following the launch of sBTC on Stacks, BTCz will transition to a fully decentralised model via sBTC’s permissionless design.