Zcoin Unlocks Greater Liquidity for Znodes, Enters DeFi Ecosystem
In a bid to improve the liquidity of Znodes and ultimately enjoy the benefits of a currently-trending DeFi ecosystem, Zcoin has announced its partnership with StakeHound. StakeHound is a liquidity bridge that connects staking and DeFi.
As of Sept 4th 2020, over $35 billion worth of assets (such as Divi, Tezos, and Zcoin) are locked in staking platforms. The DeFi space, on the other hand, has exploded in usage in the last few months, having nearly $9 billion locked in different DeFi applications.
StakeHound claims to be the first platform offering access to DeFi applications with an option to earn staking rewards; thus, bridging the gap between both segments.
Following the partnership, Zcoin’s XZC will become the first asset to be available on StakeHound’s platform. The first staked XZC is set to go live on mainnet in early October. However, users can already test the functionality on the Ropsten testnet.
Whilst revealing the partnership on Medium, Zcoin noted that it had been exploring integrations with the DeFi ecosystem. Furthermore, the partnership with StakeHound is only the first of what is to come.
According to the COO of Zcoin, Reuben Yap,
Znodes are an important part of ZCoin’s infrastructure providing security to the network. However, this also meant that the XZC locked in these Znodes were illiquid. Furthermore, the 1000 XZC minimum requirement prevented smaller holders from earning yields on their XZC. Our partnership with Stakehound solves both these problems by allowing fractional portions of Znodes to be traded while continuing to earn their share of their Znode rewards along with all the benefits of integration with the DeFi ecosystem.
In closing, Zcoin’s aim of providing a high level of privacy remains unchanged. Its move to enter into the DeFi space is to increase the utility and liquidity of Zcoin.