Zama expands confidential vault lineup on Morpho after early TVL surge
DeFi & Yields ·
The privacy-focused project has opened 16 confidential vaults on the Morpho lending protocol, following a first vault that drew $40M in deposits within seven weeks.
Zama's initial confidential vault on Morpho accumulated $40M in total value locked over a seven-week period, a pace that prompted the project to scale up its offering, according to The Block. The expansion brings the total to 16 confidential vaults on Ethereum, with five major curators now participating in the product line.
The vaults sit on top of Morpho's isolated lending-market architecture, in which curators such as Gauntlet or Steakhouse Financial set allocation strategies for depositors rather than requiring individual users to evaluate each underlying market's collateral and oracle risk. Zama's contribution layers confidentiality onto that structure, an approach distinct from Morpho's standard vaults, which are transparent by default. The involvement of five major curators suggests established risk-management firms in the Morpho ecosystem are willing to extend their frameworks to confidential products.
The rollout is not limited to lending. A separate expansion adds private swaps on Ethereum to the same confidential vault line, extending the concept beyond deposit-and-borrow markets into exchange functionality. Another corroborating account of the expansion describes the buildout as reaching 12 existing vault products plus 4 additional vaults built as confidential-only, a breakdown that is broadly consistent with the reported total of 16 vaults, though the exact mapping between "existing" and "new" designations across accounts is not fully reconciled.
Morpho itself has been the subject of continued institutional attention beyond this specific launch, including a first Hong Kong partnership with HashKey Group and HSK Chain and an equity research initiation from Standard Chartered. Those developments are separate from the Zama rollout but reflect the broader curator and institutional activity around the protocol that underpins products like Zama's confidential vaults.
What remains unclear is how the $40M figure from the first vault compares to deposits flowing into the newly launched 16 vaults, and whether the five curators are allocating across all of them or specializing by product type. Also unresolved is how the private-swap feature will be priced or risk-managed relative to the lending vaults, and whether additional curators or vaults will be added as the confidential product line matures.