Zec, renZec, Maker = DeFi?

Hey guys,

Why renZec wasn’t added for collateral in the MAKER DAO ?

The reason is renZec marketcap is too small renZEC price today, RENZEC to USD live, marketcap and chart | CoinMarketCap
So I wanted to gauge if we have a chicken and egg problem there ?

renZec marketcap is too small because we can’t do anything useful ? Or because the community doesn’t care ?

  • I would like to participate in DeFi and swap my Zec for renZec
  • I don’t want to do DeFi with my Zec

0 voters

1 Like

MakerDAO has to consider many data points to list a new asset, but mainly it’s just token contract safety + admin controls, and liquidity + volume. The first part is not an issue because renBTC already passed, and it’s the same for renZEC. The second part is where renZEC would not be a priority for MakerDAO at the moment, because the liquidity and volume is low.

MakerDAO works by collateralizing an asset to mint a stablecoin, and using oracles to keep track of the underlying asset such as ZEC in this case. If the ZEC price drops, those who have collateralized and borrowed either need to rebalance, or get liquidated trustlessly. If the liquidity for an asset is low, liquidations don’t work, so for renZEC, it wouldn’t be possible to do large collateralizations without the protocol going underwater from a position that had to be liquidated but could not be sold for the amount that was initially borrowed.

And Ethereum gas fees are so expensive these days that MakerDAO also has to disregard smaller assets, because those would not generate enough revenue for the protocol to offset the gas fees it incurs from the liquidation bots and other stuff necessary for the protocol to manage listed assets.

So, either renZEC needs more liquidity on Ethereum through the ZEC community’s involvement, or look for cheaper chains or L2s.

ZEC can be wrapped to Ethereum, Binance Smart Chain, Polygon, Fantom, Solana, Arbitrum, Avalanche, and more coming, and many of these are much much much cheaper than Ethereum, with protocols on them that would consider a ZEC listing.


And wrapped to Chia :slight_smile:

Btw I like the idea of ZEC on Proof of Space and Time (PoST).

1 Like

A new challenger, MARKET.XYZ is coming and it might be the one the Zcash community has been waiting for

The most voted answer is the one given by John Light. He says that MakerDAO is an open source project and anyone is free to launch such a contract. If you are interested in the project and want to participate in voting for the best quality proposals, you can become a Maker. It gives you voting rights for the DAI stablecoin and you will be paid in DAI tokens for the work done.

The MakerDAO community for Defi development company has always been a little bit conservative with choosing new assets for collateral. The MakerDAO was always about DAI and about being a stable coin. I believe adding ZEC for collateral could violate one of the main principals of MakerDAO, and that’s the credibility of the stable coin. Adding ZEC would affect stability and the credibility of the MakerDAO, in my opinion.