Key insights:
- ZEC pool is up and running, but trading of native Zcash is not yet available.
- The initial phase may have a more significant price impact, due to the shallow liquidity.
- The launch comes on the heels of months of technical effort and comes at a time when the tech is being closely watched regarding permissionless cross-chain activity.
After a network churn, THORChain has deployed its Zcash liquidity pool on Oct. 2, providing ZEC with a new permissionless liquidity venue. All active nodes are now tracking the Zcash chain, however the trading of the native asset is yet to be realized and initial liquidity is still low.
The launch is another step towards Zcash’s integration with the cross-chain network. But, you will not be able to execute native ZEC swaps in the pool till its live.
ZEC pool goes live after network churn
Before the activation of the ZEC pool, THORChain confirmed that its network went through the node churn. The protocol said every node had started monitoring the Zcash blockchain.
The $ZEC pool is now live on THORChain.
The network churned and every node is watching the Zcash chain. @Zcash now has a truly permissionless venue.
Trading is the next step. Liquidity is shallow for now and will grow over time, so trade with caution in the early days. pic.twitter.com/sVEj0K4xNQ
— THORChain (@THORChain) October 2, 2026
The project also has the distinction of having separated pool activation and trading. It said it would then move on to trading, but it did not specify when the trading will be launched. The announcement also indicated that liquidity was thin in the early trading days.
This distinction is important as a live liquidity pool is not necessarily a sign of native trading. Rather, the launch creates the infrastructure which is required in advance of network enabling ZEC swaps.
The protocol characterized the new venue as permissionless. This provides Zcash with another avenue of liquidity across chains, apart from centralized exchanges.
Additionally, THORChain cautioned against the initial phases due to restricted liquidity, which may drive up price impact and slippage. The announcement didn’t mention a definite pool depth or an exact timetable for trading.
Months of development prepared Zcash integration
The ZEC launch follows months of technical work aimed at adapting the network to Zcash. Earlier upgrades added support for Zcash’s UTXO structure, RPC interactions and native ZEC price data.
Developers also addressed technical issues involving network fees and transaction solvency calculations. A later change corrected how the protocol handled Zcash fee data during certain calculations.
Development continued into September as engineers addressed transaction-signing inconsistencies. Different nodes could calculate Zcash transaction expiry from different chain tips. The subsequent fix required nodes to use an agreed Zcash height when calculating transaction expiry. It also preserved that value during retries and restarts.
The timeline shows that the Oct. 2 launch followed a staged integration process rather than a single deployment. On Sept. 17, the project said Zcash ranked next for mainnet integration after a period focused on network stability.
Shallow liquidity could shape early ZEC trading
The immediate issue for ZEC traders will be liquidity once native swaps become available. THORChain has already warned that the pool remains shallow and expects liquidity to increase over time.
That warning could matter during the trading sessions. Large transactions can create price impact when a pool contains limited assets.
The network uses liquidity pools for native assets. RUNE serves as the settlement asset, across supported chains. Its model allows assets to move between networks without requiring wrapped versions.
For Zcash, the next milestone therefore remains the activation of native trading. Until that happens, the pool represents a prepared market rather than a fully operational swap route.
The rollout also expands Zcash’s presence within a permissionless cross-chain environment. Yet its immediate market effect will depend on how quickly liquidity grows after trading begins.
ZEC launch arrives amid THORChain scrutiny
The Zcash rollout comes while THORChain faces continued scrutiny over transactions involving stolen cryptocurrency. Bitget-linked wallets used the network to swap $6.3 million in Ether into Bitcoin after the exchanges September breach.
Bitget later asked the protocol to restrict transactions involving addresses linked to the attackers. THORChain rejected selective transaction blocking. Maintained that its emergency controls can pause a chain or the wider protocol, rather than freeze an individual swap.
The issue follows the debate surrounding cross-chain infrastructure after the 2025 Bybit hack. Investigators and industry participants previously tracked amounts of stolen assets through THORChain during that incident.
The protocol has argued that its permissionless design prevents it from censoring individual transactions. Its Oct. 1 explanation said major network changes require node-operator adoption and described a two-thirds threshold for decisions.
For Zcash the launch therefore creates both an infrastructure milestone and a new liquidity channel. The next test will come when native trading begins and users assess the pools depth, execution and reliability.
Conclusion
Zcash has reached another stage of its integration with THORChain after the Oct. 2 Pool launch. The network now monitors Zcash across its nodes while trading remains the activation step.
The rollout opens up a cross-chain liquidity venue for ZEC. Deeper liquidity and successful transition away from infrastructure to live trading will however be necessary, in the early phase.
