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- Zama launched a confidential USDC vault on Morpho for private onchain yield access.
- cUSDC depositors receive confidential shares while wallet-level balances stay hidden.
- The 12-week incentive program adds rewards on top of the vault’s native Morpho yield.
Zama launched the Steakhouse Confidential Prime USDC vault on Morpho on June 23, giving cUSDC holders a private yield option for deposits. The vault connects users to Steakhouse Financial’s Prime USDC strategy. It keeps individual balances and allocations hidden onchain.
As per the report, The launch gives confidential USDC a direct route into DeFi yield. Zama described the product as the first venue built for yield-generating cUSDC. Deposits are open through the vault on Morpho.
The vault mirrors the existing Steakhouse Prime USDC vault. The main change is the asset used. Instead of standard USDC, users supply confidential USDC to the strategy.
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Zama Vault Keeps User Balances Private
Depositors receive confidential vault shares after adding funds. These shares represent ownership of each position. They keep each user’s balance amount hidden from public view.
Zama said public observers can still view batch-level data. They can see the total amount deposited in each batch. They cannot track the exact contribution from a single wallet.
The company said the design keeps the vault auditable. It also protects user-level financial details. Zama added that the batching system is not a mixer.
All deposits move into the same underlying strategy. The destination of funds remains visible onchain. Ownership is recorded through confidential shares instead of open balance data.
The vault uses Steakhouse Financial’s Prime USDC strategy on Morpho. That strategy currently offers about 4% annualized yield. Returns come from the lending markets linked to the product.
Zama also introduced a 12-week incentive program. The campaign starts on June 24. Rewards will be added to the vault’s native yield.
The program is divided into three phases. Launch Pulse covers the first two weeks. Mid Pulse runs from week three through week six.
Late Pulse covers weeks seven through twelve. Zama said highest rewards will be available during Launch Pulse. Deposits made before campaign starts can receive rewards from day one.
Early Depositors Gain More Reward Cycles
Rewards will enter the vault during each batch cycle. Liquidity providers will receive them based on their share of deposits. The distribution model ties rewards to each participant’s supplied liquidity.
Timing may affect each user’s total return. Early depositors can access more reward cycles. They may also receive higher per-dollar rewards while total value locked remains lower.
As more funds enter, rewards will be shared across a larger base. That may reduce returns for later deposits. After the campaign ends, users will keep earning the vault’s standard Morpho yield.
The vault keeps the same risk settings as Steakhouse Prime USDC. It also uses the same Morpho lending markets. The underlying collateral includes cbBTC, WBTC, and wstETH.
The key change is the confidential deposit layer powered by Zama. The system uses fully homomorphic encryption for private onchain activity. It allows encrypted balances while keeping fund flows open to audit.
The launch gives DeFi users a privacy-focused yield option. It does not change the stated market exposure of the strategy. It changes how individual deposit records appear on-chain.
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