What is confidential DeFi with the Zama Protocol?

Confidential DeFi lets institutions earn yield on public DeFi venues without publishing their positions. With the Zama Protocol, deposit size, direction, and entry timing are encrypted with Fully Homomorphic Encryption (FHE), while settlement stays onchain and fully verifiable. Addresses remain public; positions stay encrypted.

Which confidential DeFi products are live today?

Confidential Vaults are live on Ethereum mainnet, starting with the Steakhouse Confidential Prime USDC vault on Morpho, and Confidential Swap lets you trade confidential tokens. The vault uses the same strategy and risk profile as the public vault, with deposit size, direction, and timing encrypted onchain.

Can auditors, custodians, and regulators still see confidential positions?

Yes. Confidentiality does not mean opacity. Through the Zama Protocol's Access Control List (ACL) and selective disclosure features, the institution decides who sees what, role by role. Fund administrators, custodians, and regulators retain authorized access, while the rest of the market only sees encrypted data.

Do we need a new blockchain to use confidential DeFi?

No. Zama is a protocol, not a chain. It is in production on Ethereum mainnet, asset-agnostic and chain-agnostic, and drops into the custody, treasury, and ERP stack institutions already run. It can be implemented with USDC, EURC, and regulated bank stablecoins without migrating to a new network.

Earn DeFi yield.
Keep the position confidential.

Q: How does a confidential vault work?

Deposits are encrypted client-side, in the institution's environment, before the Zama Protocol's confidential batcher sees them. The batcher aggregates deposits, deploys them into the underlying public DeFi vault, Morpho first, and returns confidential receipt shares. The institution earns the yield of the underlying vault while its position stays encrypted from the market.

Institutional capital wants public DeFi yield, but the public ledger publishes every deposit's size, direction, and timing line by line.

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Every onchain deposit signals your position. Alpha decays before maturity. Strategies get replicated; counterparties price against the position.

Zama is HTTPS for onchain finance: addresses stay public, positions get encrypted.

Verifiable

Onchain settlement, fully auditable.

Encrypted

Positions encrypted at the token level.

Compliant

Fund admin, custodians, and regulators retain access by role.

Composable

Drops into your existing stack.

$39B+

Ethereum DeFi TVL, deepest accessible institutional liquidity

As of June 2026 - DefiLlama

$6.72B

Morpho Total Value Locked (TVL).

As of June 2026 - DefiLlama

3–9%

stablecoin lending yields available on reputable DeFi venues

- MovingMarkets.org

The institutional flows that can't be public.

Corporate treasury, trading desks, family offices and funds, custody-channel clients, four desks, one rail.

Corporate treasury

Deploying idle stablecoins into DeFi publishes your treasury position and timing to the entire market. Earn yield onchain without making your balance sheet a public signal.

Trading firms and prop desks

Every vault entry leaks your position and invites strategy replication before you've reached maturity. Trade onchain without broadcasting your book to everyone watching the chain.

Family offices and crypto-native funds

Fund allocations on a public ledger conflict with LP reporting standards and audit posture for private securities. Get onchain composability without compromising your confidentiality obligations.

Custody-channel yield

Institutional clients want onchain yield but won't deploy through transparent vaults. Custodians can now offer confidential yield through the existing custody experience, without changing the client workflow.

Zama is a protocol, not a chain.
A standard, not a silo

The Zama Protocol is in production on Ethereum mainnet, asset-agnostic and chain-agnostic, ready to be implemented with USDC, EURC, regulated bank stablecoins, and the custody, treasury, and ERP stack institutions already run.

Client-side Fully Homomorphic Encryption

Deposit amounts are encrypted in the institution's environment before the batcher sees them. Plaintext never leaves your system.

Computation on encrypted data

The Zama Protocol's confidential batcher aggregates deposits, deploys them into the underlying public DeFi vault (Morpho first), and returns confidential receipt shares. The institution earns the yield of the underlying public vault; position size, direction, entry timing, and counterparty stay encrypted from the rest of the market.

Compliance, control and public verifiability

You decide who sees what, role by role, through the Zama Protocol's Access Control List (ACL) and selective disclosure features.

Institutions and teams already building with Zama

From confidential payroll to institutional trading — real deployments, on Ethereum mainnet, today.

Morpho - Confidentiality Meets DeFi Yield

Confidential USDC now earns yield through Steakhouse USDC Prime on Morpho, the same vault strategy and risk profile, with deposit size, direction, and timing encrypted onchain.

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T-REX - Institutional-Grade Confidentiality Infrastructure for RWA

Zama became the default confidentiality layer for T-REX Ledger, bringing FHE-powered privacy, compliance and interoperability together in one public blockchain infrastructure built for institutional scale.

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Bron - Confidential payroll on Ethereum mainnet.

Bron's CFO paid team salaries on Ethereum mainnet using confidential USDT, amounts encrypted end-to-end with FHE, visible only to sender and recipient.

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Raycash - Private, compliant banking rebuilt onchain.

Raycash delivers a Revolut-style banking experience — IBANs, cards, yield — fully self-custodial and powered by Zama's FHE encryption, keeping balances and transactions private while remaining compliant with regulators.

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Blockscout - The first explorer to support confidential tokens natively.

Blockscout now indexes and displays ERC-7984 confidential token activity, showing transfers, senders, and recipients onchain while keeping encrypted amounts fully private, powered by the Zama Protocol.

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GSR - The first confidential OTC trade on Ethereum mainnet.

GSR executed the first confidential over-the-counter trade using the Zama Protocol, with transaction amounts encrypted onchain between two KYC'd counterparties, eliminating information leakage and front-running risks.

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