Kamino launches ZEC-backed borrowing on Solana, letting users borrow USDC against Zcash

Kamino, a lending protocol on Solana, has rolled out a new borrowing feature that accepts Zcash (ZEC) as collateral in exchange for USDC loans. The move represents an attempt to bridge privacy-focused assets with Solana's DeFi ecosystem, creating a new use case for ZEC holders who want liquidity without selling their positions.

The integration signals growing interest in collateralizing privacy coins within mainstream DeFi protocols. By enabling ZEC-backed borrowing on Solana, Kamino is tapping into a segment of users seeking to leverage privacy assets while maintaining exposure to Solana's broader financial infrastructure.

• Kamino now accepts ZEC as collateral for USDC loans on Solana, adding privacy-focused assets to its lending pool.
• The feature potentially expands DeFi's reach by making privacy coins more functional beyond basic transfers and trading.
• The move comes as protocols explore new collateral types to differentiate services and attract different user segments.