Zest Launches BTCz Token: A New Era for Bitcoin DeFi
Binance Labs and Zest introduce BTCz, allowing Bitcoin holders to earn income through staking while enhancing capital efficiency in the Bitcoin DeFi landscape.
Highlights:
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BTCz token enables Bitcoin staking for passive income.
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Unique security features set BTCz apart from other assets.
Binance Labs and the Tim Draper-backed Zest Protocol have unveiled the BTCz token, marking a significant advancement in Bitcoin's decentralized finance (DeFi) ecosystem. This new token allows Bitcoin (BTC) holders to earn passive income by staking their assets through the Babylon Protocol, enhancing capital efficiency for Bitcoin.
Tycho Onnasch, co-founder of Zest Protocol, emphasized that BTCz not only generates income from validating proof-of-stake (PoS) networks but also maintains liquidity as a liquid token. He noted that while there are over ten Bitcoin-derived assets offering similar functions, BTCz distinguishes itself by leveraging the unique security features of Stacks, a layer-2 solution for Bitcoin.
The BTCz token is designed to be a yield-bearing counterpart to Stacks’ sBTC, with the potential to significantly bolster Bitcoin DeFi adoption. Although the specific yield percentage for BTCz remains undetermined, the Babylon Protocol is expected to begin validating PoS networks soon, which will enable yield generation.
The introduction of BTCz comes at a time of growing interest in Bitcoin DeFi, particularly following the recent Bitcoin halving. As more protocols emerge to enhance Bitcoin's utility, Zest Protocol aims to play a pivotal role in this evolving landscape, offering innovative solutions for Bitcoin holders seeking to maximize their investments.
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