Call For Builders: Onboard The Next Trillions In DeFi With Confidential Lending
Blog post from Zama
Decentralized finance (DeFi) has demonstrated its potential with protocols like Aave and Morpho, but the global financial market's vast movement of trillions remains largely unexploited due to the demand for confidentiality, which public blockchains cannot provide. Zama aims to bridge this gap with its Fully Homomorphic Encryption (FHE) blockchain protocol, set to launch in 2025, allowing private transactions while maintaining transparency and composability on the Ethereum network. This innovation enables confidential ERC-20 tokens, uncollateralized lending based on encrypted credit data, and protection against Maximum Extractable Value (MEV) attacks, appealing to institutions and retail users alike by providing a secure and private environment. By integrating encrypted data types, developers can create confidentiality-first applications without sacrificing the composability of blockchain, thus opening up new possibilities for private lending and institutional participation in DeFi. As Zama's testnet is live, this presents an opportunity for builders to develop innovative lending protocols that offer both DeFi efficiency and the confidentiality of traditional financial systems.