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Wrapped Zcash: Tokensoft launches DeFi compatible Zcash token

cryptocurrency
  • Ethereum version of Zcash, Wrapped Zcash (WZEC), is now available for investors.
  • Tokenization is proven to be an ideal method of providing more liquidity sources for the DeFi market.

In recent months, many non-ethereum compatible cryptocurrencies were tokenized to ERC-20 standard tokens to enable the holders to transact the crypto with Ethereum-based projects. Particularly, the goal for the crypto’s tokenization is to allow the holders to participate in the Decentralized Finance (DeFi) market for more profits. Today, the Zcash investors are getting into DeFi with Wrapped Zcash (WZEC).

Wrapped Zcash for Ethereum

Zcash (ZEC) is the native cryptocurrency of the Zcash blockchain. It uses cryptographic protocols to ensure great anonymity for its users during transactions. As recently reported on Medium, the cryptocurrency can now be transacted on Ethereum, following the launching of the ERC-1404 tokenized version of ZEC which is dubbed Wrapped Zcash or WZEC.

To generate the Wrapped Zcash, the holders of the cryptocurrency have to stake the ZEC cryptocurrency first. An equivalent WZEC will be minted to the investor, which is compatible for Ethereum and particularly the decentralized finance market. According to the report, the WZEC is pegged in the ratio of 1:1 to the current price of the original ZEC cryptocurrency.

DeFi gains more liquidity sources

The development today is the outcome of the partnership between two cryptocurrency companies – Tokensoft and Anchorage. Under the partnership, Anchorage, a qualified digital assets custodian will provide custody for the staked ZEC cryptocurrencies. The technical and issuance aspects of the WZEC will be handled by the technology company, Tokensoft.

Basically, Zcash investors can now participate in yield farming activities and other DeFi services, including in decentralized applications (dApps). The WZEC holders are still provided with the anonymity offered with original digital currency. Also, crypto exchanges can now hold ZEC “while meeting their compliance requirements.”

Ibiam Wayas

Ibiam Wayas

Ibiam is an optimistic crypto journalist. Five years from now, he sees himself establishing a unique crypto media outlet that will breach the gap between the crypto world and the general public. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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