Kamino launches an isolated ZEC lending market on Solana, enabling ZEC holders to supply collateral and borrow USDC.
DeFi & Yields ·
Kamino, a lending protocol on Solana, has launched an isolated market for ZEC, Zcash's native token, enabling ZEC holders to deposit collateral and borrow USDC against their positions. The isolated market structure allows ZEC to function as collateral while maintaining separation from other lending pools on the platform.
ZEC powers Zcash, a proof-of-work blockchain centered on privacy-preserving transactions via zero-knowledge proofs. The token recently weathered significant market volatility following mid-2026 events including a critical counterfeiting vulnerability in Zcash's Orchard shielded pool, an emergency protocol response, and a proposed Ironwood network upgrade designed to restore verification of ZEC supply integrity.
The mechanics of how ZEC's privacy architecture affects its utility as collateral in traditional lending—and whether borrowing demand reflects confidence in the token or demand for USDC liquidity among ZEC holders—remain to be tested. No details on borrowing limits, liquidation thresholds, or expected usage have been disclosed.