Zcoin uses a temporary algorithm Lyra2z
It is a chained algorithm with Blake256 first round and Lyra2 (timecost = 8, r=c=8) for the final round.
It was designed to achieve a slight advantage to GPU while making it feasible for CPU mining.
This algorithm will be replaced by MTP in April 2017 which aims for democratic mining without sacrificing performance. To read more on the MTP mining algorithm, click here.