[WZEC] MIP6 Collateral Onboarding Application

1. Who is the interested party for this collateral application?

Details about the Wrapped ZEC token Zcash are provided by wrapped.com.

2. Provide a brief high-level overview of the project, with a focus on the applying collateral token.

Zcash is a privacy-preserving cryptocurrency providing anonymous value transfer using zero-knowledge cryptography. The protocol gives users the ability to transact in either “shielded” transactions, which are totally anonymous, or have them be “transparent” or totally visible. The protocol distributes part of the mining rewards to fund the “Founders Reward,” which funds ongoing protocol development. These rewards are distributed to the Electric Coin Company as well as the Zcash Foundation which both work to develop and represent the mission of the Zcash protocol. In late November the existing Founders Reward will expire and be replaced with a new developers fund with grants available for ecosystem development without allocation towards investors and founders.

The Zcash total supply to be issued through mining rewards will be 21 million, similar to Bitcoin’s total supply. Miners receive 80% of the mining rewards from each block, with 20% allocated in the Founders Reward which goes to The Electric Coin Company and the Zcash Foundation, incentivizing ongoing development of the protocol.

The Wrapped Zcash token (WZEC) is an ERC20 standard token which represents a 1:1 value of WZEC to Zcash (ZEC) held in custody by Anchorage, a US-based trust. WZEC allows for Zcash to be used in traditional defi applications such as Uniswap, Balancer and Curve.

3. Provide a brief history of the project.

Zcash, previously iterated on under the Zerocoin and Zerocash monikers started in 2013 and was meant to be an experimental privacy extension to Bitcoin using zero knowledge proof cryptography. The goal was to improve upon the privacy and fungible capabilities of Bitcoin, avoiding significant identifying information about users of the cryptocurrency to be derived from on-chain events publicly visible on the blockchain. Not gaining acceptance or implementation from the Bitcoin community and core developers, Zcash raised $3 million USD through venture capital and began working on a standalone protocol based on a fork of the Bitcoin codebase under the Zcash Company which could deliver on a higher standard of privacy without compromise. In 2017 the Zcash Foundation, a non-profit, was created to help build internet payments and privacy infrastructure for the Zcash protocol, later re-branding to the Electric Coin Company.

Wrapped is a joint-initiative started in July 2020 by Tokensoft and Anchorage with the purpose of creating greater interoperability between blockchains. Wrapped accomplishes this by wrapping layer one blockchains and issuing 1:1 representations on the Ethereum blockchain.
Both Tokensoft and Anchorage separately established in 2017, are cutting edge leaders in their respective technology expertise. Tokensoft is an industry leading provider of AML/KYC services for issuance of security tokens allowing for precise regulatory compliance during all stages of fundraising. Tokensoft also manages the smart contract security of the minting, burning and distribution of the wrapped tokens. Anchorage is a Qualified Custodian which secures over 100 billion in transactions annually through cutting edge cyber security architecture.

4. Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.

Whitepaper: http://zerocash-project.org/media/pdf/zerocash-extended-20140518.pdf

Documentation: https://zcash.readthedocs.io/en/latest/

Source Code: https://github.com/zcash/zcash

Zcash Use of zk SNARKS explainer: https://z.cash/technology/zksnarks/

Tokensoft Github: https://www.github.com/tokensoft/tokensoft_token

Anchorage Github: N/A

5. Link any available audits of the project. Both procedural and smart contract focused audits.

Security Information: https://z.cash/support/security/

2018 Least Authority Audit: https://electriccoin.co/blog/2018-security-audit-results-in-detail/

Tokensoft Smart Contract Audit: https://certificate.quantstamp.com/full/token-soft-token

2018 Least Authority Audit: https://electriccoin.co/blog/2018-security-audit-results-in-detail/

6. Link to any active communities relating to your project.

Twitter:

Reddit: https://www.reddit.com/r/zec

Telegram:https://t.me/Zcash_Community

Discord: https://discord.gg/PXHqXV2

Forum Managed By Zcash Foundation: https://forum.zcashcommunity.com

Wrapped Twitter: https://twitter.com/wrappedfi/

Wrapped Telegram: https://t.me/wrappedfi/

Tokensoft Twitter: https://twitter.com/tokensoftinc

Tokensoft Blog: https://medium.com/tokensoft

Anchorage Twitter: https://twitter.com/Anchorage

Anchorage Blog: https://medium.com/anchorage

7. How is the applying collateral type currently used?

ZEC is a privacy focused peer-to-peer cryptocurrency used as a means of payment between parties. Users have the option to transact in both private shielded transactions as well as transparent transactions.

WZEC can be used in decentralized exchanges such as Uniswap or in defi applications that accept Wrapped Zcash as collateral or similar.

8. Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?

Tokensoft and Anchorage are responsible for the Wrapped tokens custody, minting, burning and distribution. Anchorage is headquartered in San Francisco, CA and Tokensoft is headquartered in Austin, TX. They are both incorporated in Delaware.

9. Where does exchange for the asset occur?

ZEC is traded on most major centralized cryptocurrency exchanges including Coinbase, Gemini, Binance, Kraken, Huobi and more. An Ethereum ERC-20 asset called Wrapped Zcash, or WZEC is also traded currently on Uniswap. Wrapped Zcash is an asset issued by Wrapped in partnership with Anchorage, a US-based trust and Tokensoft (a tokenization platform).

10. (Optional) Has your project obtained any legal opinions or memoranda regarding the regulatory standing of the token or an explanation of the same from the perspective of any jurisdiction? If so, those materials should be provided for community review.

N/A

11. (Optional) Describe whether there are any regulatory registrations for the token and provide related documentation (including an explanation of any past or existing interactions with any regulatory authorities, regardless of jurisdiction), if applicable.

N/A

12. (Optional) List any possible oracle data sources for the proposed Collateral type.

The centralized exchanges listed may offer data feeds that can be used for a ZEC/USD oracle.

Uniswap trading pair pricing can be a source of price and trading data for WZEC with additional decentralized exchanges to be added soon.

13. (Optional) List any parties interested in taking part in liquidations for the proposed Collateral type.

N/A

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