Zypher Lending

Templar Protocol is proud to announce that the ZCash integration is now live! For the first time, ZEC holders can deposit native ZEC as collateral and borrow stablecoins directly on Solana — all without wrapping, bridging, or centralized custodians.

Using NEAR Protocol’s chain abstraction stack (NEAR Intents and Chain Signatures), the entire process is seamless with no trusted third parties:

1. Connect your phantom wallet, passkey wallet, or NEAR wallet

2. Decide how much ZEC to use as collateral and how much USDC to borrow, and then send ZEC to the deposit address 

3. Finalize the borrow and receive USDC on Solana

Collateral remains on the ZCash network secured by NEAR’s MPC network, with all lending logic and liquidation safeguards enforced by Templar’s audited smart contracts on NEAR. No rehypothecation, no KYC, and no third-party custodian.

Templar's money markets are isolated (like Morpho), opposed to the pool based model (like Aave). This has several advantages:

1. Lower Contagion Risk 

• The market solvency risks are isolated just to ZEC + USDC assets (vs all assets in a pool). This isolation helps lower contagion risk (i.e. 1 asset in the pool depegs or crashes making the pool insolvent)

2. Better borrow LTVs

• Due to the lower contagion risk, we can safely offer better borrow LTVs 

3. Permissionless Free Markets > Governance

• Relies on market supply/demand instead of governance for asset addition and risk management. If there’s demand to launch a market with support for a new stablecoin, or other borrow assets, against ZEC as collateral, then Templar can support that asset without a governance vote required or any updates to the pool’s risk management system. This design better preserves permissionlessness in DeFi

This is only the beginning of our push towards enhanced privacy on Templar. We will continue expanding our offerings with:

• Exploring shielded borrowing support

• Exploring partnership with ECC for Zashi wallet integration

• Combine ZK + MPC + FHE technology to increase onchain privacy when interacting with Templar smart contracts

• Differential privacy to add noise to the open loans and reduce the probability of predatory liquidations

For Templar, privacy is a cornerstone of our Cypher Lending ethos. We’re excited to bring Cypherpunk Lending to the preeminent Cypherpunk Cash, allowing you to Be Your Own Swiss Bank.

Visit zec.templarfi.org to borrow against Unstoppable Private Money and experience Zypher Lending for yourself or btc.templarfi.org to borrow against your BTC.