Zcoin Blog

New DeFi Bridge For Zcoin via Stakehound

By October 30, 2020 No Comments

Starting today, Zcoin (soon to be Firo) is the first project to launch on StakeHound’s liquidity bridge to the decentralized finance (DeFi) ecosystem on Ethereum. With the new stakedXZC token, all Zcoin holders will be able to generate yield through major DeFi applications while they continue to receive stable staking rewards.

Roughly half of all the XZC in circulation are staked in Znodes. Due to the design of Zcoin’s blockchain, these coins are illiquid and are locked out from being actively traded unless they cease becoming Znodes. Using the StakeHound bridge, which has already onboarded ~$850,000 USD worth of Zcoin, investors no longer have to choose between staking or participating in the DeFi ecosystem such as decentralized exchanges or loans.

StakeHound will exchange XZC for a tokenized version called stakedXZC. These are ERC-20 tokens that are fully liquid. StakeHound is the first platform that tokenizes staked positions, which can be used in DeFi while still earning staking rewards.

“Now Zcoin holders can participate in the DeFi ecosystem while not forgoing their Znode rewards. The ability for stakedXZC to be used in decentralized loans and DEXes greatly improves both liquidity and utility of the coin. The integration also gives Zcoin its first institutional grade custodian via Copper.co allowing institutions to more easily hold Zcoin/Firo.” Reuben Yap, Project Steward of Zcoin

Znodes are essential to Zcoin’s infrastructure and provide security to the Zcoin network, but they require 1000 XZC to be locked. The new StakeHound partnership will allow all Zcoin holders to trade fractional portions of Znodes, while still earning their share of Znode rewards and any additional returns from being part of the DeFi ecosystem.

The Zcoin<>StakeHound bridge offers these benefits:

  • No need to maintain nodes yourself
  • Fractional ownership of Znodes
  • Participation in the DeFi ecosystem including DEXes and lending platforms.

“Our partnership with Zcoin is the first of more to come that will unlock billions of dollars of value in staked coins,” said Albert Castellana, CEO of StakeHound. “We’ve also partnered with Copper.co, an institutional grade custodian, to make onboarding as simple and safe as possible, so that stakedXZC holders can start reaping the rewards.”

From the 30th of October, users will not only be able to get stakedXZC on the StakeHound Platform in exchange for original Zcoin, but also simply purchase them directly in DEXes like Uniswap. This way users can immediately start providing liquidity for the new stakedXZC and earn additional yield.

As Zcoin is undergoing a rebrand that will take effect in 30 November, stakedXZC will be renamed to stakedFIRO when the time comes. No user intervention is required.

The Zcoin core team are also exploring trustless bridges and are set to be integrated in renVM as member of REN Alliance.

DISCLAIMER: StakeHound is solely responsible for the stakedXZC contract on Ethereum and swaps to and from native XZC into stakedXZC may require compliance with KYC and AML policies. However movement and trading of stakedXZC does not require any KYC/AML and functions like any other ERC20 token.

Token contract: https://etherscan.io/token/0x160B1E5aaBFD70B2FC40Af815014925D71CEEd7E
Uniswap ETH/StakedXZC pool: https://app.uniswap.org/#/swap?inputCurrency=ETH&outputCurrency=0x160B1E5aaBFD70B2FC40Af815014925D71CEEd7E