Zcash (ZEC) Liquidity Pool Now Active on THORChain After Network Node Churn

TLDR

• THORChain activated its Zcash (ZEC) liquidity pool on October 2 following a network-wide node churn process.
• Every active node on the network now monitors the Zcash blockchain, with native trading functionality scheduled as the immediate next phase.
• The decentralized exchange cautioned that initial liquidity depth is limited and advised users to exercise care.
• Months of technical development preceded the launch, including UTXO management, RPC implementation, and oracle integration.
• The integration arrives as THORChain faces questions about its role in processing funds linked to the Bitget security breach.

THORChain has activated its liquidity pool for Zcash. The decentralized exchange made the announcement on October 2 after successfully completing a comprehensive node churn across its network.

All operational nodes within the THORChain network are now actively monitoring the Zcash blockchain. While trading functionality has not yet been enabled, the protocol confirmed it represents the immediate next milestone.

The announcement made clear that pool activation and the commencement of user trading are distinct phases. Trading capabilities are expected to follow shortly.

Initial Liquidity Depth Remains Limited

The protocol issued a warning to prospective users regarding the current state of the newly launched pool. According to THORChain, liquidity depth is minimal at this stage and will expand gradually.

The network recommended that traders proceed with caution during the initial period of ZEC pool activity. Neither specific liquidity figures nor a definitive trading launch date were provided in the October 2 statement.

A network explorer monitoring active THORChain nodes currently shows ZEC operating with normal status. The asset now appears alongside Bitcoin, Ethereum, and other integrated blockchains.

Extended Development Cycle Preceded Launch

The Zcash integration required extensive preparatory work over several months. THORChain’s March 4 protocol update introduced chain-specific UTXO management and RPC functionality tailored for ZEC.

The same upgrade integrated Zcash into the protocol’s oracle infrastructure. This integration provided the network with native price-tracking capabilities for the privacy-focused asset.

A subsequent GitLab patch resolved a bug affecting ZEC network fee calculations. Developers noted that earlier code versions could potentially inflate gas tolerance parameters during specific solvency computation scenarios.

Development efforts extended through September. A THORNode merge request corrected signing inconsistencies that arose when nodes computed transaction expiration from differing local chain tips.

The solution anchored transaction expiration to a consensus ZEC block height instead. This approach maintained signing data consistency across nodes during retry attempts and system restarts.

On September 17, THORChain indicated that Zcash represented the next blockchain scheduled for mainnet integration. This announcement followed a period during which the project prioritized network stability over introducing additional chain support.

Zcash’s UTXO architecture necessitated additional configuration steps. THORChain required parameters for address verification, gas measurement units, dust thresholds, block intervals, and coinbase settings before deployment could proceed.

The pool activation coincides with heightened attention on THORChain’s involvement in processing funds from security breaches. Bitget revealed a hack that began September 24, subsequently increasing its estimate of funds transferred to attacker-controlled addresses to approximately $387.5 million.

According to Bitget, this total encompassed Zcash and Tron transactions identified by forensic investigators. The exchange enumerated affected tokens including XRP, ETH, USDT, ZEC, USDC, XAUt, BNB, AVAX, and TRX.

Blockchain intelligence reports indicate that a wallet associated with the Bitget attacker executed 27 separate swaps via THORChain. These transactions converted approximately 2,390 ETH into 75.2 BTC, valued at roughly $6.3 million at execution time.

Bitget requested that THORChain block transactions originating from addresses linked to the attacker. THORChain refused, explaining that its emergency mechanisms can halt an entire chain or the protocol itself but cannot selectively freeze individual addresses or transactions.

THORChain elaborated on its stance in an October 1 blog entry. The project stated that significant protocol modifications require consensus from two-thirds of node operators.

This marks a recurring pattern of scrutiny for THORChain. Following the February 2025 Bybit security incident, Bybit’s CEO stated that 72% of approximately $900 million in laundered stolen assets transited through THORChain.

Bitget’s recovery portal currently displays attacker addresses spanning multiple networks, including Zcash. The exchange has established a 5% bounty program for information resulting in frozen or recovered assets.

At present, THORChain’s Zcash pool remains operational, though native trading functionality has not yet been activated.