THORChain Launches Native Zcash Swaps

Introduction

THORChain, a decentralized exchange, has announced the launch of native Zcash swaps, allowing users to exchange ZEC with assets across other supported blockchain networks.

Key Features

The launch follows THORChain update 3.20, which introduced support for Zcash and Monero to the protocol. The Zcash pool currently holds more than $50,000 in liquidity, allowing the network to begin processing live ZEC swaps.

Liquidity Pool

The pool remains in a soft-launch phase while performance is monitored. Trading may be temporarily paused if bugs or other issues need to be addressed. The current pool size can easily support trades in the five-figure range, however larger trades will experience higher slippage and take longer to settle until liquidity grows in the pool.

Protocol-Owned Liquidity

Protocol-Owned Liquidity (POL) will be automatically added to the Zcash pool when the fees/depth ratio is high enough. POL, introduced as part of the 3.20 upgrade, gives the protocol a mechanism to deploy a portion of the liquidity fees into supported liquidity pools.

Integration Benefits

The integration gives Zcash holders a direct route into the broader crypto market using native assets. Users can swap ZEC against supported assets including Bitcoin, Ethereum, and stablecoins without needing to deposit their Zcash with a centralized custodian or convert it into a wrapped representation on another network.

Cross-Chain Liquidity

Zcash adds another native blockchain to THORChain’s cross-chain liquidity network, bringing the total to 14 blockchains. Rather than move assets through bridges or require users to give up custody to trade between otherwise disconnected networks, THORChain settles swaps using the native assets on their respective chains.