THORChain Launches Native Zcash Swaps to Enable Cross-Chain Trading
Decentralized exchange THORChain (RUNEUSD) has launched native Zcash (ZECUSD) swaps, allowing users to trade ZEC directly with other major cryptocurrencies. The integration, which followed the protocol's 3.20 software upgrade, enables cross-chain transactions without the need for wrapped tokens, bridges, or centralized intermediaries. On the day of the announcement, THORChain was down 6.45% to $0.6735, while Zcash fell 13.50% to $1,148.
The feature is currently in a soft-launch phase as developers monitor performance, and trading could be paused if any technical issues arise. The Zcash pool has launched with over $50,000 in liquidity, which can comfortably support five-figure trades. However, larger transactions may experience higher slippage and longer settlement times until the pool grows.
To boost liquidity, THORChain plans to automatically inject Protocol-Owned Liquidity into the pool once the fees-to-depth ratio reaches an appropriate level. This mechanism, also introduced in the 3.20 upgrade, allows the protocol to allocate 20% of liquidity fees back into supported pools, which should lower price impact and speed up execution for larger trades.
Key points
- THORChain has launched native Zcash swaps, bringing its total supported blockchains to 14.
- The integration allows users to swap native ZEC without using wrapped tokens, bridges, or centralized exchanges.
- The Zcash pool has launched with over $50,000 in liquidity, which can currently support five-figure trades.
- The protocol will automatically add Protocol-Owned Liquidity to the pool as trading fees and depth increase.
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How we writeDisclaimerQuestions and answers
What are native Zcash swaps on THORChain?
They allow users to trade Zcash directly with other supported cryptocurrencies on THORChain without using wrapped tokens, bridges, or centralized exchanges.
How much liquidity is currently in the THORChain Zcash pool?
The Zcash pool has launched with more than $50,000 in liquidity, which is sufficient to support five-figure trades during its soft-launch phase.
What is Protocol-Owned Liquidity on THORChain?
It is a mechanism introduced in upgrade 3.20 that automatically deploys 20% of liquidity fees into supported pools to increase depth and reduce trade slippage.