Zest Protocol has launched its zvstBTC vault on Stacks, its first automated Stacks Vault product, as part of the broader effort to make Bitcoin productive in DeFi (decentralized finance). Users deposit stBTC or BTC and receive zvstBTC shares. The vault uses a leveraged loop by posting stBTC as collateral in Zest’s lending market, borrowing sBTC, and directing the borrowed assets back into staking positions. Staking (locking crypto to earn rewards) through stBTC, the liquid staking token issued by Stacking DAO, currently offers roughly 2.6% APY without leverage; Zest targets 6-8% APY through the strategy. Returns are reflected in the vault’s net asset value, increasing the value of each zvstBTC share rather than being distributed as separate tokens. Deposits are initially limited to 10 BTC so the protocol can test the strategy with controlled risk. Zest’s Stacks lending market has reached peak total value locked of more than $100 million and has reported zero bad debt since launching in March 2024. The vault uses stBTC for staking yield and primary collateral, while sBTC is the borrowable asset supporting the leverage loop. Stacks settles directly to Bitcoin’s base layer, and Zest has added STX token incentives to encourage participation.