A shielded memo API for buying and selling ZEC?

Has anyone thought about the possibility of a shapeshift-like exchange API that worked over shielded memos?

How it would work:

  1. There is a known shielded Zcash address for “ZEC to BTC” where I can send ZEC with a memo containing a BTC address. The exchange then sends me BTC at market rate.
  2. There is a known address for “BTC to ZEC” where I can send a memo containing zcash address. The exchange replies with a BTC address and when I send BTC to that address I receive ZEC at the address I provided at market rates.
  3. You could provide a Changelly-style “locked rate” in either case by adding a step where the exchange promises an exact rate for a certain amount of time.

One could use https://renproject.io/ to build such an API release it as an open source tool that anyone deploy to AWS.

You’d still need to depend on another exchange, or at least on an API provider. But users wouldn’t have to leave the Zcash ecosystem to complete a trade.

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Yes, exchanging directly from a shielded address would be useful, but do you know of any exchanges that deal with shielded Zcash?

None yet. I’ve heard that Flyp.me has it on their roadmap.

That’s why it might be a good starting point to use a cross-chain DEX like renproject.io. With that approach you can roll your own exchange and—even if you’re receiving transparent transactions from the DEX, you can deal with the user exclusively through shielded transactions.

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Last I checked shapeshift supported Z-addresses.

sideshift.ai fully supports shielded Zcash.

I just tried a z-address on shapeshift and it threw a not-so-user-friendly error!

—Holmes

Hm, perhaps something has changed since 2018? https://youtu.be/JgvyQYFNKaw

Sideshift.ai is only available in certain countries. The US is not one of them. Just an fyi