Zeus network is a communication layer linking Solana & Bitcoin by introducing wrapped Bitcoin (zBTC).
How it works:
You deposit BTC to a multisig address on the Bitcoin network that generates yield
This multisig address is controlled by verifiers. Verifiers are also responsible for minting zBTC on Solana.
Verifiers are actors who run Zeus nodes and stake SOL / LST version of SOL as collateral. The system requires these people to provide more collateral than the amount of assets they secure. For example, if $1mm of SOL is deposited, it means that only 700k of zBTC can be minted.
The protocol’s first product aims to solve the demand for native Bitcoin to earn yield and participate in speculation in the Solana ecosystem in a decentralized and trustless manner.
Zeus can be viewed as the decentralized version of BitGo and their wrapped Bitcoin on the Ethereum Network (wBTC) which has over $10B of AUM. Zeus aims to fill the hole left by Alameda and its rugged Sollet Wrapped BTC (SoBTC), which had over 16k units on the Solana network ($1B).
We think Zeus will command a healthy valuation due to the relative lack of quality projects with liquid tokens on Solana. Liquid funds and other speculators searching for SOL beta don’t have many areas to funnel their capital into. Zeus’s peers in the Solana network all have very healthy valuations in the multiples of billions.
The longer term vision for Zeus is to provide a Solana native cross communication layer for any cryptocurrency asset, with Wormhole being one of the closest comps.
Disclaimer: Scimitar Capital is an investor in Zeus Network
Does it also allow to "bridge" from Solana to Bitcoin? i.e. redeem zBTC with native bitcoin