The rising recognition of decentralized finance (DeFi) has attracted many different digital property to Ethereum, together with Bitcoin, in a wrapped layer one resolution. The most recent to affix the league is the privacy-centric coin Zcash (ZEC). The Wrapped Zcash is introduced into the Decentralized ecosystem by Anchorage in affiliation with Tokensoft.
Wrapped ZCash (wZEC) is the primary asset launched by the “wrapped” challenge in affiliation with Ethereum tokenizers Tokensoft and the certified custodian Anchorage. The liquidity for the wrapped challenge can be provided by over-the-counter (OTC) liquidity supplied by CMS Holdings.
Nevertheless, Wrapped Zcash will not be the primary wrapped digital asset on Ethereum. Wrapped Bitcoin has been fairly standard because the DeFi market continues to blow up. A wrapped digital asset transfers the worth of that exact digital asset onto the Ethereum blockchain by creating an ERC-20 token with a 1:1 worth illustration in opposition to the asset. Thus one Wrapped bitcoin can be equal in worth to that of 1 bitcoin.
This enables for different digital asset holders to entry the DeFi house and collateralize that asset as a substitute of shopping for Ether after which collateralizing it. This additionally helps in rising the liquidity of the DEX ecosystem.
Zooko Wilcox-O’Hearn, Zcash founder and Electrical Coin Firm CEO, commented on their current affiliation with Anchorage and Tokensoft and mentioned,
“I’m thrilled that there’s such curiosity, and that individuals can, and do, innovate and deploy extensions on high of Zcash with out the Electrical Coin Firm’s data or approval.”
“I additionally agree that it’s nice for folks to have extra alternate options to centralized exchanges (CEXs), and the best way that CEX’s need to adjust to arbitrary calls for from their banks.”