Proposal: Add Support for WZEC + RenZEC

Governance New Asset
1

With the recent news of WZEC enabled through the Wrapped platform hosted by Anchorage + Tokensoft, Zcash holders now have two avenues to bridge their ZEC onto Ethereum: RenZEC and WZEC.

At the moment, 4,122 renZEC (coingecko #) and 9,001 WZEC exist in circulation within Ethereum, bringing the total market cap of ZEC within DeFi to ~ $752,199 (marked to a current ZEC price of $56.89). This represents just 0.127% of the total ZEC marketcap.

One major roadblock holding back increased bridging of ZEC is the fact that the only real option for use at the moment is pooling through a DEX such as Uniswap, Balancer, or Sushiswap as an LP. While the accrual of fees providing liquidity to an AMM may be attractive for some longer-term LP’s, many prefer to avoid the possibility of IL associated with acting as a short term LP, thus limiting the attractiveness in bridging ZEC for a broader subset of users.

AAVE has the opportunity to be the premier platform for Zcash holders seeking to put their dormant assets to work. Adding WZEC and RenZEC would provide benefit for:
(i) Ethereum on the whole - bridging more native layer 1 assets onto the Ethereum blockchain and increasing DeFi TVL, and
(ii) AAVE specifically as the main hub for bridged Zcash lending, increasing AAVE’s platform TVL and usage.

While the move may seem preemptive, ZEC is a longstanding name with a strong team and total marketcap exceeding half a billion dollars. The first platform to act on enabling ZEC lending within DeFi on Ethereum presents a unique opportunity to become the defacto lending hub as a first mover. At the same time, the ability to lend via DeFi would incentive ZEC holders to bridge their coins over and put them to work. For these reasons, I propose the addition of both WZEC and RenZEC to the AAVE platform.

References



9 Likes
2

I’m supportive of adding support for renZEC. There are many Storage of Value type token (whether privacy or not), but many of them tend to have fostered a maxi-type culture. From my experience interacting with the ZEC community, they give off a much more open-minded and positive energy.

I can’t comment on wZEC as I haven’t reviewed or assessed their custodial design and potential risk. (Not saying they are risky, I just haven’t looked into it myself).

I believe there is strong opportunity for growth of ZEC on ethereum… especially once they’re able to participate in yield farming activities such as Curve pools.

7 Likes
4

RenZEC will be agreat addon to AAVE. The ZEC community is one of the oldest and passionate crypto family out there. I fully support the proposal.

2 Likes
5

I’m definitely in support of creating more incentive for bringing Zcash over into the Ethereum DeFi space, currently the liquidity has been growing sort of similar to wBTC in the beginning, it had low adoption for a long time as it wasn’t that integrated in the space, but with more integrations and the wBTC/renBTC pool on Curve the liquidity for both assets exploded. Similarly now we have renZEC which has been out there for a while, and with wZEC recently coming out, a Curve pool for renZEC/wZEC, and some integrations for both wrapped ZECs, we can see volumes exploding likewise (although ofc not as much as with BTC).

Having options for wrapped tokens in general is great, the centralized ones like wBTC and wZEC will satisfy some users like institutions that prefer having some regulated entity custody the underlying assets, while the (on the road to) decentralized ones like renBTC and renZEC which work permissionlessly satisfy other users.

3 Likes
6

ZEC! Yes, please! More options for non-erc20 token holders is always nice.

1 Like
7

Hello - Please take a look at the maker collateral proposal for more information on WZEC: https://forum.makerdao.com/t/wzec-mip6-collateral-onboarding-application/5153

You’ll be able to find audits, other information there.

1 Like
8

Hey - Thanks for posting this! For more information about what’s going on behind the scenes, please checkout the Maker Collateral proposal here: https://forum.makerdao.com/t/wzec-mip6-collateral-onboarding-application/5153

If there’s anything we can help with - please feel free to reach out in our telegram group t.me/wrappedfi

1 Like
9

Hello,

I wanted to bump this thread and express interest in WZEC on AAVE again. ZEC and privacy coins have additional traction lately. I think AAVE supporting WZEC could be a driver for more ZEC holders to move onto Ethereum, and earn on their otherwise dormant assets.

4 Likes
10

Hi everyone, for future reference here is the Curve renZEC/wZEC liq pool proposal (voted) sCIP#14 - renZEC/wZEC Pool - Proposals - Curve.fi Governance that @defifrog mentionned.

Also, similar to wBTC, the wZEC asset is issued by wrapped.com using custody from Anchorage.

11

Hey, let’s move the needle on this please, we need renZec on AAVE please !

12

Thanks for this proposal

Would love to have a full understanding of ZEC and renZEC. Could you please follow the New Asset Listing - Governance that covers all the important points?

The community also needs to better the underlying risks, you could use Aave Risk Framework for example Methodology - Risk