THORChain has launched native Zcash (ZEC) swaps, letting users exchange ZEC for other supported blockchain assets without using wrapped tokens or centralized exchanges.
The feature went live after THORChain version 3.20, which added support for Zcash and Monero. The Zcash pool currently holds more than $50,000 in liquidity and is able to process live ZEC swaps.
The Zcash pool is in soft launch
THORChain said the pool is still in a soft-launch phase and its performance will continue to be monitored. Trading may be paused temporarily if bugs or other issues need to be fixed.
At its current size, the pool can comfortably support trades in the five-figure range. Larger transactions, however, may face higher slippage and longer settlement times until more liquidity comes in.
POL can be deployed to the ZEC pool automatically
According to the announcement, Protocol-Owned Liquidity, or POL, will be added automatically to the Zcash pool once the fee-to-depth ratio is high enough. POL was introduced as part of the 3.20 upgrade and allows the protocol to deploy part of its liquidity fees into supported pools. That share is currently set at 20%.
As more liquidity enters the ZEC pool, THORChain said it should be better able to support larger swaps, reduce price impact, and speed up execution.
Zcash becomes the 14th native chain on THORChain
The integration gives Zcash holders a way to access the broader crypto market with the native asset itself. They do not need to deposit Zcash with a centralized custodian or convert it into a wrapped token on another network before swapping it for supported assets such as Bitcoin (BTC), Ethereum (ETH), and stablecoins.
With the launch, Zcash becomes the 14th native blockchain in THORChain’s cross-chain liquidity network, according to CryptoPotato as cited by Techub.