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Zest Protocol Joins the Borrow on Bitcoin DeFi Rate Index (2026)

By Steven Han and Michael Song, Co-Founders, Borrow/On/Bitcoin ·

We added Zest Protocol to the Borrow on Bitcoin DeFi Rate Index. Zest is a non-custodial Bitcoin lending market on Stacks, a Bitcoin layer-2, where you post sBTC as collateral and borrow USDCx stablecoins against it. With Zest included, the index now tracks 10 protocols, and Zest currently lists the lowest variable borrow rate of any market we cover, about 2.12% APR read live from its onchain contracts.

What Zest is

Zest Protocol has been live on Stacks since March 2024. You deposit sBTC, a token backed 1:1 by Bitcoin and settled on the Bitcoin blockchain, and borrow USDCx, a dollar stablecoin, without selling your Bitcoin. There is no application, no credit check, and no company holding your collateral; it is a set of audited smart contracts on Stacks. We cover how it works, its collateral and rehypothecation model, its liquidation mechanics, and its audits in our Zest Protocol review.

What makes it stand apart from most of the index is the chain and the collateral. The other markets we track mostly run on EVM chains (Ethereum, Base, Arbitrum, and others) and take wrapped Bitcoin such as cbBTC or wBTC. Zest runs on Stacks and takes sBTC, whose 1:1 Bitcoin peg is secured through a threshold-signature arrangement on Bitcoin itself rather than a single custodian. It is the first Bitcoin layer-2 market in our index.

What it adds to the index

Our DeFi Rate Index tracks the variable rate to borrow USDC against Bitcoin across permissionless protocols, snapshotted daily and weighted by each market's supplied size. Zest joins that set as the current low end of the range, at roughly 2.12% variable APR. Because the index is weighted by market size and Zest's tracked market is small next to the largest EVM markets, it moves the average very little; its main visible effect is setting the floor of the rate range. Its history in the index starts on the day it was added, since we do not back-fill a period a market was not listed.

The Zest figures update on their own. We read utilization, supplied and borrowed amounts, and the borrow rate directly from Zest's onchain contracts, so the numbers on the page reflect the live state of the protocol rather than a static snapshot.

We track it, we do not rank it on safety

One thing worth being clear about: we list Zest as data, not as a recommendation. We show its rate, utilization, market depth, collateral model, and audit history as facts, and we do not fold them into a safety score or tell you whether Zest is safer or riskier than any other protocol. DeFi is permissionless and exploit-prone, and that assessment is yours to make. Our full approach is in the DeFi methodology, and the numbers behind the index are free to reuse in our machine-readable feed.

See it for yourself

You can see Zest next to every other onchain market in the DeFi Rate Index, read the specifics in our Zest Protocol review, and go straight to the source at zestprotocol.com.

Rates are variable and read from Zest Protocol's onchain contracts as of July 2026. DeFi borrowing carries smart-contract and liquidation risk; confirm current terms on the protocol directly before borrowing.

Frequently asked questions

What is Zest Protocol?
Zest Protocol is a non-custodial Bitcoin lending market built on Stacks, a Bitcoin layer-2, and live since March 2024. You post sBTC, a token backed 1:1 by Bitcoin and settled on the Bitcoin blockchain, as collateral and borrow USDCx stablecoins against it, with no application and no credit check. It is a set of smart contracts, so there is no company holding your collateral. Full details are in our Zest Protocol review and on zestprotocol.com.
What rate does Zest Protocol list at?
As of the latest read from Zest's onchain contracts, its variable USDCx borrow rate is about 2.12% APR, which is the lowest of any market in our DeFi Rate Index. Like every DeFi rate, it is variable and moves with pool utilization, so the figure you borrow at is the rate at that moment, not a fixed number. We read it live from the protocol's contracts.
Is Zest Protocol in the DeFi Rate Index now?
Yes. Zest is included in the Borrow on Bitcoin DeFi Rate Index and the per-protocol roll-up as of July 22, 2026. Because the index is weighted by market size and Zest's tracked market is small next to the largest EVM markets, it carries little weight in the average, but it currently sets the low end of the rate range. Its history in the index begins on the date it was added.
How is Zest different from the other protocols in the index?
Most markets in our DeFi index run on EVM chains and take wrapped Bitcoin like cbBTC or wBTC as collateral. Zest runs on Stacks and takes sBTC, a decentralized asset backed 1:1 by Bitcoin whose peg is secured through a threshold-signature arrangement on Bitcoin itself rather than a single custodian. It is the first Bitcoin layer-2 market in our index.

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borrowonbitcoin.com is a comparison publisher, not a lender or financial advisor. Full disclosures.