Introducing On-Chain Bitcoin Capital Markets – Zest Protocol

After gaining substantial leverage and massive popularity in the crypto industry, more people are becoming liquidity providers in order to maintain their earnings without having to trade mindlessly and losing a lot of their hard-earned capital. Even borrowers have to struggle considerably to avoid liquidations that are uncalled for.

For such liquidity providers, Zest provides a sustainable way to gain bitcoin yield via lending pools managed by professionals. On the other hand, borrowers get undercollateralized on-chain bitcoin financing. This way borrowers can be free of the constant fear of liquidation that haunts them.

Overview of Zest Protocol Participants

Zest Protocol structure depends on the following:

• Pool delegates

They are a significant part of the Zest Protocol who have been chosen to manage each and every pool that liquidity providers select for depositing their bitcoins. Pool delegates keep borrowers in check by performing diligence.

• Liquidity providers

Liquidity providers are one of the fundamental participants in this process because they ensure that the zest pools have bitcoins in them for borrowers to use. Their responsibility is depositing bitcoin into Zest pools to fund loans and earn yields.

• ZEST token holders

They have a right to vote on onboarding pool delegates and also on general updates made on the protocol. These are under development but they would be minted in proportion to the bitcoin entering protocol treasury.

• Borrowers

Only whitelisted borrowers are allowed to join a Zest pool before they can request capital from LPs. Their loans are fulfilled but they also make periodic interest rate payments in bitcoin which is sent to LPs and also pool delegates.

The Need for Zest Protocol

For crypto investors and bitcoin holders, a significant time is spent doing absolutely nothing. Their digital assets remain still in their respective wallets until there is a favourable opportunity arises. Bitcoins held by whales do not get used for institutional adoption. Through Zest Protocol, there is a way to make your bitcoin productive and gain from it.

Zest is a fully on-chain answer that makes every bitcoin holder into a significant liquidity provider on its platform and helps them earn a yield on their Bitcoin in return. Once you choose to lend with Zest, it would take your bitcoin to a pre-vetted institutional borrower connected with the same professionally-managed pool. All quality and due diligence checks are handled by pool delegates.

Once the connection is established and your Bitcoins reach the borrowers, liquidity providers would receive their yield from the pool they choose periodically. You can even choose a date on your own to get bitcoin yields easily.

To start lending with Zest, simply visit their website or smart contract to choose a pool you like based on its yield.

About Zest Protocol:

Zest Protocol is an exciting on-chain platform under-collateralized bitcoin loans. The best thing about this whole process is that Zest participants i.e. both liquidity providers and borrowers would interact with bitcoin blockchain and no other chain for convenience.