Stacks' Bitcoin-native finance ecosystem is growing with the upcoming Zest Protocol Stacks Vaults.
The vault introduces automated yield strategies that amplify Bitcoin yield sourced from Stacks Bitcoin Staking.
The mechanism is simple:
- Deposit BTC, sBTC, or stBTC into the vault. The deposit converts into stBTC, Stacking DAO's upcoming liquid staking token, which keeps earning Bitcoin Staking yield while remaining free to use elsewhere
- The stBTC in the vault serves as collateral to borrow sBTC, stake the borrowed sBTC again to receive more stBTC, and repeat the cycle to compound yield, targeting a 6-8% target APY
That's how Bitcoin Staking yield compounds further across the Stacks ecosystem.
Read more about it here: https://thedefiant.io/news/press-releases/zest-protocol-announces-stacks-vaults-bringing-automated-yield-strategies-to-bitcoin-native-finance
