 Binance-backed Bitcoin DeFi protocol Zest launches yield-bearing BTCz token 
2024-09-05

Binance Labs and Tim Draper-backed Zest Protocol have launched their new BTCz token in the latest development for Bitcoin-native decentralized finance (DeFi).
The new BTCz token will allow Bitcoin BTCUSD holders to earn a staking yield on their Bitcoin through the Babylon Protocol.
The new Zest Protocol Bitcoin (BTCz) token could bring a significant increase in capital efficiency for the world’s first cryptocurrency, according to Tycho Onnasch, the co-founder of the Zest Protocol.
The co-founder told Cointelegraph:
Zest is among the protocols building more utility around the world’s first cryptocurrency in a new paradigm known as Bitcoin DeFi (BTCFi), which aims to bring DeFi capabilities to the world’s first blockchain network.
BTCz to be a cousin to Stacks’ sBTC, but the yield percentage remains unknown
Zest Protocol’s new token will be a yield-bearing cousin to Stacks’ sBTC token, according to Onnasch, who wrote:
While BTCz is a promising development for Bitcoin holders, the yield-generation opportunities remain unknown.
This is because the Babylon Protocol’s yield percentage is yet to be determined, which will be the underlying yield for BTCz, Onnasch told Cointelegraph:
Why America Should Buy Bitcoin | RFK Jr. Interview. Source: YouTube
Bitcoin DeFi in 2024: Key moments
Increasingly, more protocols are building Bitcoin DeFi solutions after the 2024 Bitcoin halving introduced Runes, a new protocol for issuing fungible tokens on Bitcoin.
At the beginning of May, Hermetica launched the first-ever Bitcoin-backed synthetic United States dollar with yield-generating capabilities. USDh launched with an initial yield of up to 25% for users. 
At the beginning of August, the world’s second-largest crypto exchange, Coinbase teased the development of a new Wrapped Bitcoin (BTC), called Coinbase BTC (cbBTC), creating widespread excitement among crypto investors.
Cointelegraph
The new token could significantly bolster the adoption of Bitcoin-native DeFi, according to Rena Shah, the chief operating officer of Trust Machines, a software firm building Bitcoin solutions. Shah told Cointelegraph:
In July, Arthur Hayes’ Maelstrom fund announced a Bitcoin grant program of up to $250,000 per developer to advance the technical development of the Bitcoin network.