TheBlock
Zama is opening deposits to 16 confidential vaults on Morpho on Sept. 15, expanding a product line whose first vault climbed from zero to $40 million in total value locked within seven weeks of its June launch. The new lineup spans USDC, USDT, AUSD, and TGBP deposits, curated by Steakhouse Financial, Armitage by Wintermute, Flowdesk, RockawayX, and Bitwise. Twelve of the vaults wrap existing Morpho markets with a confidentiality layer; four are purpose-built for private deposits. Alongside the vaults, Zama is launching the Zama Swap Protocol for swapping between confidential assets on Ethereum without disclosing transaction size or intent.
Why it matters
On public blockchains, every position, balance, and strategy is visible to competitors and front-runners, a structural blocker Zama argues has kept institutional capital on the sidelines at scale. Confidential wrappers around familiar Morpho markets aim to solve that without forcing allocators to abandon existing risk profiles. Morpho co-founder Merlin Egalite framed the launch as a way to scale confidential DeFi without changing strategy, liquidity, or risk parameters. The vault curator list reads like a who-is-who of institutional crypto market makers and asset managers, suggesting the target buyer is the corporate balance sheet rather than the degen farmer.
Market impact
The first vault's seven-week ramp from zero to $40 million TVL is the benchmark the new lineup will be measured against, and replicating that cadence across the 16 vaults would materially expand Zama's footprint inside Morpho's lending markets. Wallets and aggregators are queueing to integrate: Utila, Zerion Wallet, and Yield.xyz are due to add the vaults in the coming weeks, widening distribution beyond Zama's own app. The Swap Protocol adds a second primitive beyond yield, letting depositors rebalance between confidential positions without leaking intent to the public mempool.
Frequently asked questions
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How many confidential Morpho vaults is Zama launching?
Zama is opening deposits to 16 confidential vaults on Morpho on Sept. 15. Twelve wrap existing Morpho markets with a confidentiality layer and four are built specifically for confidential deposits.
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How fast did Zama's first confidential vault grow?
Zama's first vault, launched in June with Steakhouse Financial, climbed from zero to $40 million in total value locked within seven weeks using Steakhouse's USDC Prime strategy.
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Which firms curate the new Zama vaults?
Steakhouse Financial curates a portion of the 16 vaults. Armitage by Wintermute, Flowdesk, RockawayX, and Bitwise also serve as curators across the new lineup.
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What does the Zama Swap Protocol do?
The Zama Swap Protocol lets depositors swap between confidential assets on Ethereum, including cUSDC, cUSDT, cAUSD, cTGBP, and shares in the confidential vaults, without disclosing transaction size or intent.
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Which wallets are integrating the new Zama vaults?
The vaults go live first through Zama's own app. Utila, Zerion Wallet, and Yield.xyz are due to add support in the coming weeks.
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