ZEC as DeFi Collateral: How to Borrow/Lend on Loopscale with zenZEC

For years, Zcash believers have had to make a tradeoff. If you cared about privacy and self-sovereignty, you held ZEC. If you wanted to use DeFi, you had to give that up and move into more trackable assets, or leave your ZEC sitting on centralized exchanges with all the usual risks.

Now that changes. For the first time ever, borrow and lend has been enabled for ZEC in DeFi. With zenZEC on Solana and collateral support on Loopscale, ZEC holders can keep their belief in privacy while finally participating in high-speed DeFi and earning rewards along the way.

Why ZEC Matters In The First Place

Zcash has always represented a simple idea: financial freedom requires privacy.

ZEC brings:

• Encrypted transactions that protect your financial history
• Strong cryptography designed for censorship resistance
• A monetary system that does not force users to trade away their privacy for usability

The problem was not ZEC itself. The problem was that the infrastructure around it never fully caught up. Most DeFi rails were built around transparent assets. Privacy coins were pushed to the sidelines, often stuck on centralized venues or used only for simple hold and transfer.

zenZEC and Loopscale are changing that.

Enter zenZEC: ZEC, Now Composable In DeFi

zenZEC is a 1:1 backed wrapped ZEC, secured by Zenrock's decentralized custody (dMPC) and issued on Solana. It is built so that:

• Your underlying ZEC is securely locked in a decentralized wallet
• You can get exposure to ZEC on Solana
• Your zenZEC becomes a productive asset across Solana DeFi

Since launching on October 31, zenZEC has already shown strong traction: over $30M in total volume, 1.4k holders, 1k zenZEC minted, and 200k total trades.

ZEC As Collateral On Loopscale

Loopscale now supports zenZEC as collateral, which means ZEC holders can finally borrow against their position instead of letting it sit idle.

Here is what is live:

Collateral

• Borrow USDC using zenZEC
• Borrow USDC using zenBTC

Reward Programs

• 1M ROCK tokens allocated
• 3x Loopscale points
• All four core activities are equally incentivized

The incentives flow through two core vaults that plug into Orca LP positions:

• zenZEC Vault — taps into the zenZEC:zenBTC LP on Orca
• zenBTC Vault — taps into the zenBTC:cbBTC LP on Orca

The result is a system where ZEC and BTC based assets reinforce each other. ZEC believers get access to lending markets, while the broader decentralized custody ecosystem grows deeper with assets and stronger incentives.

Step By Step: How To Go From ZEC To Borrowing In DeFi

1. Mint zenZEC

Minting zenZEC is designed to be simple and aligned with self-custody principles:

• Connect your Solana wallet to the zenZEC mint page
• Generate a dMPC-powered Zcash deposit address
• Send ZEC from any wallet (including directly from a centralized exchange) to your deposit address
• Your ZEC is automatically and securely locked in a decentralized wallet
• Your Solana wallet becomes soulbound to your ZEC deposit address — no need to create or manage multiple ZEC addresses

You now hold zenZEC on Solana, fully backed by ZEC and ready to be used across DeFi.

2. Use zenZEC As Collateral On Loopscale

• Head to the Loopscale zenZEC vault
• Deposit zenZEC as collateral
• Borrow USDC against your position
• Earn ROCK tokens and Loopscale points as you participate

3. Plug Into The Incentivized Vaults

To maximize rewards, route zenZEC through the vaults that tap into Orca LP positions. For ZEC-focused users, the zenZEC Vault uses the zenZEC:zenBTC Orca LP. For BTC-focused users, the zenBTC Vault uses the zenBTC:cbBTC Orca LP.