Cardano Developer Opens ADA–ZEC Swap Prototype to Contributors
The zeUTXO project explores direct swaps between ADA and shielded Zcash. Its author has paused development and published a handoff for anyone who wants to continue the work.
By SongMarketCap
Updated:
A developer known as maybejb200 invited the Cardano community on November 12 to take over or reuse zeUTXO, an open-source prototype for exchanging ADA and shielded ZEC without a third party holding the funds. The code and test results are public. So far, the prototype has run only in a simulator.
One swap, two different settlement systems
The design gives each blockchain a different role. On Cardano, one participant locks ADA in a smart contract written in Aiken and compiled for Plutus V3. On Zcash, the other participant funds a shielded note controlled by a key that depends on contributions from both parties. The protocol links access to the funds on the two networks through cryptography.
The Cardano contract checks conditions it can verify locally, so the design requires no Zcash light client, relay, or oracle on Cardano. The aim is an atomic swap, where the steps needed to claim one asset also give the counterparty what they need to claim the other.
The escrow accounts for a participant walking away
The Cardano contract separates the commitment to claim funds from the step that reveals the information needed to complete the exchange. It also defines a recovery path if a participant commits and then stops responding. Under that path, the original depositor can recover the locked ADA after the applicable deadline.
The developer reported that the end-to-end simulator passed all 727 checks across two parameter profiles. The repository contains the contract and test suite, giving other developers a way to inspect the results. An independent audit remains outstanding.
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A Zcash node stalled the first testnet rehearsal
A rehearsal between November 9 and 11 was intended to pair Cardano Preprod with the Zcash test network. According to the developer, the Zcash node repeatedly stalled while syncing, and the rehearsal ended before a swap took place.
The handoff identifies a specific task for whoever takes over. A live rehearsal would let contributors check how Cardano handles transaction validity intervals and confirm that the escrow can be spent using transactions submitted to Preprod.