The solution

The solution is an on-chain Bitcoin capital market that runs on smart contracts that are secured by the Bitcoin blockchain itself. Enter Zest Protocol 🍊
Zest Protocol reduces counterparty risk by executing loans transparently on-chain. Borrowers are publicly visible, as well as all loan details and whether the borrower is meeting its obligations. In addition, Zest Protocol relies on smart contracts to handle pooled funds rather than opaque balance sheets. Anyone can check on the funds at any time, as well as the open source smart contract code that moves the funds around.
Zest Protocol produces reliable yield by attracting the most credit-worthy borrowers in crypto. These types of borrowers borrow BTC directly against their balance sheet. Zest Protocol allows vetted institutions to borrow from liquidity pools without requiring borrowers to overcollateralise on chain. Zest Protocol uses a pool delegate model for providing Bitcoin loans to institutions, allowing for a decentralised network of professional underwriters to compete on their underwriting expertise in a transparent marketplace.