Zama Shielded Assets Rose to $90 Million
The confidential DeFi network expanded to sixteen active vaults this month, signaling growth in privacy-focused protocols.
Updated on Oct. 2, 2026 in Cybersecurity
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Zama reached $90 million in total shielded value locked as of September 2026, representing a significant increase from $40 million in June. The protocol also expanded its architecture from a single vault to sixteen active vaults on September 15.
Why it matters
This growth highlights an increasing market interest in confidential decentralized finance, which currently holds $197.6 million in total value across the sector. By scaling its vault capacity, Zama is attempting to accommodate larger deposits while maintaining encrypted asset management.
The platform now manages $68 million in deposits through the Morpho protocol across sixteen vaults. These vaults are maintained by five distinct curators, with users utilizing the Zama Confidential Swap Protocol to move between assets and shares.
The players
Zama
A cryptography company focused on homomorphic encryption tools and privacy-preserving blockchain protocols.
Morpho
A decentralized lending protocol that currently secures over $68 million in Zama-related deposits.
Merkl
A liquidity management and incentive distribution tool integrated into Zama to drive encrypted balance participation.
DeFiLlama Research
A data analytics firm that monitors decentralized finance market activity and reported $197.6 million in total confidential DeFi value.
Solana
A high-throughput blockchain network currently hosting the ZAMA token.
The details
The Zama architecture leverages confidential computing to mask transaction data while maintaining DeFi functionality. Users deposit assets into vaults—secure, sequestered pools of funds—where the Zama Confidential Swap Protocol facilitates asset and share movement without exposing individual balances. This is supported by an encrypted balance incentive program integrated with Merkl, a tool for managing liquidity rewards.
Timeline
June 2026: The network recorded $40 million in shielded total value locked.
September 15, 2026: The network expanded from one vault to sixteen active vaults.
September 2026: Total shielded value reached $90 million.
The Tech Race
Zama is currently navigating a competitive landscape where privacy-focused protocols seek to capture a share of the nearly $200 million in confidential DeFi liquidity. This expansion marks a move to scale secure, encrypted vault systems against established, non-private lending alternatives.
Users can now interact with sixteen different vaults managed by five independent curators, potentially increasing asset diversification options. Participation is facilitated through the Zama Confidential Swap Protocol, though users should note that incentives are governed by the new integration with Merkl.
The takeaway
Zama's expansion suggests that privacy-preserving DeFi is gaining traction as a viable alternative for capital management. Interested observers should monitor the continued growth of vault deposits and the effectiveness of Merkl incentives in sustaining network activity.
Further reading
For broader trends in encrypted infrastructure, see the latest updates on Cybersecurity.
More information
View the full details in the Zama project update.
Source note: This article includes information reported by Crypto Economy.
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