Rysk Finance Launches First On-Chain ZEC Covered Calls on HyperEVM

Rysk Finance, a decentralized finance (DeFi) protocol specializing in volatility yield, has announced the launch of the first-ever on-chain covered calls for Zcash (ZEC). This new offering is now live on the HyperEVM mainnet, facilitated by bZEC, a wrapped version of ZEC, and enabled through a collaboration with Bitfrost. The development introduces a novel yield-generating opportunity for holders of the privacy-focused cryptocurrency within the broader DeFi ecosystem.

"On chain $ZEC covered calls. First ever. Live now. Powered by bZEC on HyperEVM via @Bitfrost," Rysk Finance stated in its announcement. This marks a significant expansion for both Zcash and the on-chain options market.

Rysk Finance operates as a volatility yield layer, allowing users to earn upfront premiums by engaging in covered call and cash-secured put strategies. The protocol employs a Request for Quote (RFQ) mechanism for transparent and fully collateralized execution, aiming to provide liquid and composable options primitives without the liquidation risks associated with some previous DeFi options models. This approach seeks to make sophisticated options strategies accessible to a wider audience.

The integration of Zcash into this system is made possible by bZEC, which functions as a wrapped ZEC token, enabling its use on EVM-compatible networks. Bitfrost plays a crucial role in this process, having launched support for Zcash (ZEC) on Hyperliquid. This support facilitates native bridging and enhances on-chain liquidity, allowing ZEC to seamlessly interact with the HyperEVM environment. Zcash itself is renowned for its optional anonymity features, utilizing zero-knowledge proofs (zk-SNARKs) to provide enhanced privacy for transactions.

HyperEVM, a high-performance Ethereum Virtual Machine built on the Hyperliquid Layer 1 blockchain, provides the scalable and developer-friendly environment for this innovation. Its deep integration with Hyperliquid's trading infrastructure, where HyperCore handles high-speed spot trading, allows for efficient interaction between smart contracts and order books. This dual-stack architecture supports the complex financial instruments offered by Rysk Finance.

This launch is expected to open new avenues for Zcash holders to generate yield on their assets, fostering greater utility and adoption for ZEC within the decentralized finance landscape. By providing a secure and transparent platform for ZEC covered calls, Rysk Finance and Bitfrost are contributing to the evolution of DeFi, offering more diverse and sophisticated financial products to a growing user base.