After Dash (DASH) a few days ago, it is Zcash (ZEC) ’s turn to become more compatible with decentralized finance (DeFi) protocols. Wrapped tokens are now offered by Tokensoft: the “Wrapped“ Zcash ”.
According to the Tokensoft press release , the maneuver aims to use Zcash on Ethereum , in order to access DeFi markets thanks to the anonymous altcoin. This was made possible through a partnership between Tokensoft and Anchorage, a digital asset platform for institutional investors.
Tokensoft will manage the representation of Zcash on the Ethereum blockchain. For its part, Anchorage will ensure the conservation of the ZECs, which will be stored in exchange for Wrapped Zcash (WZEC) . The news is notable: Privacy altcoins haven’t particularly stood out for their integration into the decentralized finance industry so far.
Zcash goes DeFi
The benefits are numerous for the users: on the one hand, they can make use of Zcash’s privacy options on DeFi projects. This makes Zcash de facto compatible with the biggest protocols, including Maker, Uniswap and Compound. This also has another less expected benefit, according to Tokensoft CEO Mason Borda:
“We look forward to enabling the use of a more interoperable form of Zcash with the WZEC. […] Additionally, exchanges will now be able to store Zcash while meeting compliance requirements . ”
Other altcoins in the pipeline
The press release also specifies that other cryptocurrencies will be considered in order to be “Wrapped” and usable with Ethereum. Anchorage CEO Nathan McCauley explains:
„By bringing new sources of liquidity to DeFi , and allowing users to benefit from the qualities that make first layer protocols unique, the Wrapped technique is a boon to both market players and the ecosystem in his outfit. “
Anchorage is therefore considering the upcoming addition of Handshake (HNS) , Avalanche (AVAX) and Celo (CELO) in a Wrapped version, before extending this new service to other altcoins.
However, it should be noted that contrary to what the two companies ‚ press release implies, the „Wrapped“ Zcash „already existed , thanks to the services of RenVM . The Anchorage and Tokensoft solution is therefore nothing new, but it shows an underlying trend. Altcoins are gradually building bridges with Ethereum , so as not to miss the DeFi train. We had already seen it a few days ago with the creation of “Wrapped Dash” intended to be used on decentralized finance protocols.