THORChain has introduced a new Zcash (ZEC) liquidity pool following the completion of a network-wide node churn, moving the privacy-focused cryptocurrency a step closer to full native cross-chain trading on the protocol.
THORChain activates Zcash liquidity pool
In an October 2 X post, THORChain revealed the deployment of the ZEC liquidity pool, emphasizing that all network nodes are now actively monitoring the Zcash blockchain. This development marks a significant milestone in integrating Zcash into THORChain’s decentralized cross-chain ecosystem.
THORChain is a cross-chain decentralized liquidity protocol that enables direct swaps between major blockchains without intermediaries. With the ZEC pool launched, Zcash now has a permissionless liquidity venue within the network.
Although the pool is now live, THORChain clarified that native ZEC trading is not yet available. The team identified enabling trading as the forthcoming phase, stating that liquidity remains shallow at this initial stage.
THORChain encouraged users to exercise caution in the early days due to limited liquidity, which can lead to higher slippage and greater price impact for larger trades. The protocol did not specify the current liquidity depth nor announce a date for activating native ZEC swaps.
The ZEC pool is now live on THORChain. The network has churned, and every node is monitoring the Zcash blockchain. Zcash now has a genuinely permissionless venue for liquidity, with trading set as the next step. Liquidity is shallow for now and is expected to grow over time, so caution is advised initially.
Zcash integration process and next steps
ZEC’s integration follows months of technical preparation by the THORChain development team. In its v3.16.0 upgrade, the network introduced Zcash-specific UTXO management and refined remote procedure call logic to accommodate Zcash’s blockchain structure.
ZEC was also added to THORChain’s enshrined oracle, enabling the protocol to access native Zcash price data for its operations.
Development continued through September as engineers resolved inconsistencies in transaction signing related to Zcash’s unique transaction expiry mechanism. This required consensus among nodes on the specific blockchain height used for expiry, as well as improved handling of transaction retries to preserve key information.
THORChain’s recent adjustments ensure more reliable and consistent processing of ZEC transactions across the network.
The current activation forms part of a broader, phased integration for Zcash rather than a simple listing. Once native trading is enabled, users will be able to swap ZEC directly within THORChain without reliance on centralized exchanges.
It remains unclear whether shielded ZEC transactions will be supported in the new pool. THORChain has not made a definitive statement regarding this feature, leaving the scope of Zcash functionality open for now.
For now, ZEC has been added to THORChain’s live liquidity infrastructure. Activating direct trading and increasing liquidity remain the next goals for the protocol and its users.
Mini dictionary: Node churn: In decentralized networks like THORChain, “node churn” refers to the process of rotating or replacing active validator nodes to improve security, prevent collusion, and maintain network robustness.
