Anonymous DeFi option for ZCash (ZEC) - trading experience on a Decentrilized Exchange, Liquidity provision, Yield Farming.
Hey guys, it’s nickvasilich from IncognitoChain, a privacy-oriented protocol. I’m a fan of privacy & DeFi and I work to bring anonymity and DeFi to non-Ethereum assets. I’m here to share some decentralized finance tools that the Incognito team launched recently for ZEC holders.
While we’re still developing new solutions for privacy in DeFi and improving what we have, we’ve already been noticed by industry influencers and a wide swath of the crypto community. In this post, I’m going to explain Incognito DeFi and available options for ZEC, with some outside reviews.
TL;DR: You can use Incognito to anonymously trade your ZEC across blockchains in the privacy DEX, you can anonymously yield farm your ZEC using the Provide feature in the app (yielding 13% APY), contribute to liquidity pools, and more.
Recently, Incognito was featured in Jeff Berwick’s and Ed Bugos’s. The Dollar Vigilante Newsletter on Jan, 2021, and described as an interesting DeFi opportunity for non-ETH assets.
Here’s a piece of the newsletter:
“…example of Monero on DeFi is Incognito, which is a wallet and exchange that claims to feature a “pDEX” (private decentralized exchange) with pooled funds.
For example, when you deposit BTC into your Incognito wallet, the BTC goes into Incognito’s pool and is wrapped into shielded Bitcoin, or pBTC. When you deposit XMR, Incognito wraps your coins into shielded XMR, or pXMR. You can then privately transfer your shielded coins to other users via the Incognito wallet, or convert them into the Incognito pDEX’s native token, PRV.
Incognito basically allows you to wrap your regular coins into shielded privacy coins within their wallet, and it uses technologies like zero knowledge proofs along with an Automated Market Maker algorithm to enable anonymous exchanges as well. However, one downside in my opinion is that Incognito utilizes Proof-of-Stake (PoS), and has a 5% premine of PRV which is used to fund its development. I have my doubts about whether or not their system is truly as decentralized as they claim, but it looks like a fascinating project to experiment with in small amounts, nevertheless.“
The letter mentions DeFi for Monero, and shielding BTC, but nothing about ZEC. It’s a direct quote from the newsletter that highlights the ability to “wrap your regular coins into shielded privacy coins”. This and nearly every other Incognito feature is available for all the assets listed on the pDEX and ZEC in particular.
The “Private Exchange” (pDEX) is not private as in centrally owned, but private as in enabling anonymous trades. It’s a decentralized, permissionless exchange with zero trading fees. The current iteration of liquidity pools is temporarily centralized, but decentralizing in stages. All features are live, so you can download the app (iOS, Android) and try it out for yourself by trading or adding liquidity to yield a farm right now.
Incognito is still a relatively small project, with around 10,000 users. It’s important to ensure the project is trustworthy (until it’s fully decentralized, that is), so here are a few stats.
TVL (total value locked) : ~ $34,954,328 with $87,760,822 Trading Volume - check it;
All that said, I’m not trying to tell you to use Incognito. I’m hoping that by presenting a little bit about our privacy movement, I’m starting a conversation. Privacy is essential to the fungibility and safety of crypto, and Incognito makes every trade anonymous. And, taking DeFi beyond Ethereum is great too.
For conversations with real people, ask me questions (no need to go easy on me!) or make a post at we. incognito. org, where most of our users are active.
Feel free to share your concerns or questions, or join us in the February PRV Holders Call. It’s a monthly call when the core team reports to the community about the progress made and plans for the future, and then opens up to a Q&A and general chat.