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The Zcosystem is Z’s application layer: a coordinated set of DeFi primitives, each integrated with the ShieldedPool (MASP) at the protocol level. This is a deliberate choice. Deep ShieldedPool integration across every application requires coordinated design. A single trusted stack gives AI agents a composable environment they can reliably coordinate across without discovering or evaluating third-party protocols. And AI tooling has collapsed the cost of shipping quality software, making vertical integration increasingly practical.

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Z Trade

Z’s flagship DEX with concentrated liquidity, enshrined on Z with native ShieldedPool integration.

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How Private Trading Works

Z Trade uses a RelayAdapter contract to execute an atomic three-step flow: unshield, execute, reshield.
  1. The user’s assets sit as private notes in the ShieldedPool.
  2. The user builds a ZK proof authorizing the swap and submits it to a broadcaster.
  3. The broadcaster calls the RelayAdapter, which atomically:
    • Unshields the input tokens from the ShieldedPool to the adapter contract
    • Executes the swap on the AMM (approve, swap, collect output)
    • Reshields the output tokens back into the ShieldedPool as new private notes
The entire sequence is one transaction. An observer sees that a swap happened at the adapter contract. They cannot see who initiated it, link it to prior activity, or connect it to a ShieldedPool balance. The adaptParams binding (keccak256(nullifiers, commitments, actionData)) is included in the ZK proof’s public inputs. This prevents the broadcaster from modifying the swap parameters, changing the recipient, or substituting a different trade. If any bound parameter changes, the proof is invalid.

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Z Lend

Z’s flagship lending and borrowing protocol, enshrined on Z with ShieldedPool integration.

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How It Works

Deposit collateral and borrow against it. Supported collateral assets include ZEC, stZEC, Z, stZ, USDZ, and yUSDZ. The same RelayAdapter pattern used by Z Trade applies here: deposit and borrow operations can be executed from the ShieldedPool through stealth addresses, keeping the borrower’s identity unlinkable.

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Sample Use Case

Deposit stZEC as collateral. Borrow USDZ. Maintain ZEC price exposure and earn staking yield (if using stZEC) while accessing private stablecoins. This is the composition path described in Liquid Staking.

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Z Stake

The staking application for the Zcosystem. Z Stake issues liquid staking tokens that turn staked assets into composable capital. stZEC (post-launch) represents deposited ZEC on Z. Deposit ZEC, receive stZEC. stZEC is freely composable: trade it on Z Trade, use it as collateral on \Z Lend, deposit it into the ShieldedPool (MASP) for privacy. stZ is the same concept for the Z token. Stake Z, receive stZ, earn consensus rewards. stZ maintains DeFi composability while the underlying Z participates in consensus. For the full liquid staking architecture, see Liquid Staking.

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USDZ

Privacy-preserving stablecoin backed 1:1 by stablecoin reserves. Deposit stablecoins into the USDZ mint contract on the source chain. Receive USDZ on Z. USDZ can be deposited into yUSDZ to earn yield, used as collateral on Z Lend, traded on Z Trade, or shielded in the ShieldedPool (MASP). For the full USDZ architecture, see USDZ.

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yUSDZ

A yield-bearing stablecoin token. Users deposit USDZ into an ERC-4626 vault and receive yUSDZ, which appreciates as yield accrues. For the full yUSDZ architecture, see yUSDZ.

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What’s Next

Z Perps. Perpetual futures with private positions. Leverage trading where nobody outside can see position sizes, direction, or liquidation levels. Z Vault. Yield strategy vaults across different assets. Z Vault accepts deposits and deploys them into optimized strategies within the Zcosystem.

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Why Vertical Integration

Agents need a single trusted stack. AI agents operate best when they can move through a composable set of applications with predictable patterns and no need to discover or evaluate third-party protocols. Privacy integration benefits from coordinated design. The RelayAdapter pattern, which makes private DeFi possible, requires tight coupling between each application and the privacy layer. This works best when the applications are designed as one system. Revenue compounds internally. Because every primitive is enshrined, revenue from Z Trade fees, Z Lend interest, USDZ fees, yUSDZ performance fees, staking protocol fees, and bridge fees stays within the protocol. AI makes vertical integration practical. AI tooling has made it dramatically faster and safer to ship a full vertical stack. What used to require separate teams for each primitive can now be built and maintained as one coordinated system.

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The DeFi Composition Stack

The applications are designed to compose. A user can move through the full stack in a single session:
  1. Deposit ZEC into stZEC
  2. Deposit stZEC as collateral on Z Lend
  3. Borrow USDZ against it
  4. Deposit USDZ into yUSDZ (earn yield on the borrowed stables)
  5. Shield assets in the ShieldedPool (MASP)
The result: ZEC price exposure, borrowed stablecoins, yield on those stablecoins, and privacy over the full position. Each application handles one step. The ShieldedPool ties them together.