Access liquidity from your ZEC holdings through DeFi lending - keep your coins, borrow stablecoins, and maintain financial privacy with Zcash's shielded technology.
Zcash (ZEC) is a decentralised cryptocurrency combining Bitcoin's scarcity model with state-of-the-art zero-knowledge cryptography - making it uniquely suited as a privacy-preserving DeFi collateral asset.
With a fixed 21 million coin supply, proof-of-work mining, and the ability to conduct fully shielded transactions using zk-SNARKs, ZEC offers something no other collateral asset can: the option to maintain financial privacy throughout the lending process. As DeFi protocols increasingly support ZEC, the case for ZEC-backed loans grows stronger every year.
Unlike selling ZEC and losing exposure to potential price appreciation, a ZEC-backed loan lets you maintain your position while accessing the stablecoin liquidity you need for other purposes - trading, expenses, or further investment.
Disclaimer: We are independent Zcash enthusiasts. Not affiliated with the Zcash Foundation or Electric Coin Company. This is not financial advice.
ZEC-backed DeFi loans follow a straightforward collateralised lending model used across DeFi. Here's the full process.
Lock your ZEC into a smart contract as collateral. The protocol holds your ZEC securely while your loan is active. You maintain ownership - you're not selling.
Borrow USDC, USDT, or DAI against your ZEC collateral at a loan-to-value ratio typically between 50–70%. The stablecoins go directly to your wallet for immediate use.
Your ZEC collateral continues to exist on-chain. Meanwhile, use your borrowed stablecoins however you need - all while maintaining your ZEC exposure and privacy preferences.
When you're ready, repay the stablecoin loan plus accrued interest. Your ZEC collateral is automatically released back to your wallet. No intermediaries, no paperwork.
Shielded ZEC collateral loans - privacy-first DeFi lending coming soon. Join the waitlist to be first in line when we launch the most private lending experience in crypto.
Everything you need to know about using ZEC in decentralised lending - LTV ratios, liquidation risks, and getting started.
Read →A deep dive into the mechanics of ZEC collateral: smart contract custody, risk management, and best practices.
Read →Explore yield-generating options for ZEC holders: lending, liquidity pools, and more with risk/reward analysis.
Read →A ZEC-backed DeFi loan is a collateralised lending arrangement where you deposit your Zcash as security and borrow stablecoins (USDC, USDT, DAI) in return. The loan is managed by smart contracts - no bank, no credit check, no KYC required in most protocols. You keep ownership of your ZEC and get access to liquidity simultaneously.
LTV is the ratio of your loan amount to your collateral value. If you deposit $1,000 in ZEC and borrow $600 in USDC, your LTV is 60%. Most ZEC lending protocols set a maximum LTV of 50–70% to account for ZEC price volatility. If the ZEC price drops and pushes your LTV too high, your position faces liquidation - which is why maintaining a safety buffer below the maximum LTV is critical.
Liquidation occurs when your collateral value falls below the liquidation threshold - typically when LTV exceeds 80–85%. At that point, the protocol automatically sells a portion of your ZEC collateral to repay part of the loan and reduce the LTV back to a safe level. To avoid liquidation, either add more ZEC collateral or repay part of your loan when ZEC price drops significantly.
Yes. DeFi lending protocols charge variable or fixed interest rates on borrowed funds. Typical rates range from 2–15% APY depending on the protocol and market conditions. Interest accrues in real time and is added to your outstanding loan balance. Always check the current rate before borrowing and factor it into your repayment plan.
DeFi support for ZEC is growing as the ecosystem matures. Wrapped ZEC (WZEC) on Ethereum-compatible chains can be used in protocols like Aave and Compound via bridge integrations. Native ZEC DeFi support is in active development. Always verify current protocol support before depositing - the landscape changes frequently. See our full protocol guide for the latest information.