Templar Enables First Native ZEC Borrowing

Users can borrow USDC by locking native ZEC using NEAR Intents and Chain Signatures without trusted third parties.

Isolated markets limit contagion risk and enable better loan-to-value ratios compared to pooled lending models.

Templar plans advanced privacy features including shielded borrowing, ZK tech, and differential privacy protections.

A new feature launched this week on Templar Protocol now allows users to borrow stablecoins directly against native ZCash. The rollout introduced the first option for ZEC holders to use their assets as collateral without wrapping, bridging, or relying on intermediaries. This update went live on Solana using tools built on the NEAR Protocol.

Process Uses NEAR Intents and Chain Signatures

The platform outlined a workflow that begins with connecting a Phantom, Passkey, or NEAR wallet. Users then choose how much ZEC to deposit and how much USDC to borrow

After that step, they send ZEC to the designated collateral address before receiving USDC on Solana. This process relies on NEAR Intents and Chain Signatures, which handle the multichain actions without introducing trusted third parties

Templar stated that collateral remains on the ZCash network while NEAR’s MPC network secures the assets. The lending logic and liquidation rules operate through audited smart contracts maintained on NEAR.

Isolated Market Design Reduces Asset Exposure

Templar also highlighted how its isolated markets differ from pool-based structures. The team compared the approach to models used by Morpho rather than pooled systems like Aave

Each market contains only the assets involved, which they said reduces contagion risk. This structure allows ZEC and USDC positions to remain separated from broader asset pools

Templar added that this design enables better loan-to-value ratios because fewer assets contribute risk. They also noted that market additions rely on supply and demand rather than governance votes, making new collateral or borrow markets permissionless.

Privacy Features and Development Plans

The protocol then detailed its upcoming privacy roadmap. Templar plans to explore shielded borrowing support and a potential partnership with ECC for integrating Zashi. Additionally, the team aims to combine ZK, MPC, and FHE technologies to increase privacy during smart contract interactions.

They also intend to add differential privacy to reduce the likelihood of targeted liquidations. Templar described privacy as a foundational element of its lending framework.

The post Templar Enables First Native ZEC Borrowing appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.