Zama (ZAMA)

The illusion of decentralization is breaking down in front of our eyes. “Any contract holding freezable assets could have the same issue. This includes DeFi, staking contracts, bridges, etc.” - $ZAMA founder https://t.co/R9zlEDPbcR

shoutout to patagon for inventing the bleakest pvp meta yet. suing Zama to "arbitrage outdated laws" just to dump $ZAMA 10%. weaponizing the legal system as a short setup. incredible innovation.

🚨 $ZAMA: PRIVACY... EXCEPT WHEN YOU HAVE TO FREEZE FUNDS? A rather ironic situation on Zama's side The project is often presented as: → a privacy‑oriented infrastructure but today → funds have just been frozen What happened? According to Zama an address linked to the Overnight Finance hack allegedly deposited: → more than $12.5 M of USDC into the confidential wrapper cUSDC At the time → the address was not sanctioned → no signal had been detected but a new judgment has been issued and several wallets linked to the hacker have been subjected to a freeze measure Problem: At that moment over 99% of the cUSDC contract's funds came from that deposit Result: → request to freeze the contract and a temporary suspension of: • cUSDC • cUSDT • cWETH What’s interesting here Zama reminds an important point: → the protocol is not a mixer the sending and receiving addresses remain visible only: • the amounts • the balances are masked This is where the paradox appears We talk about a project built around privacy but that nevertheless applies: → fund freezing → compliance → execution of judicial orders

The $ZAMA token this morning got the IDO folks super excited. Now it’s plummeting down to 0.33. This scene looks all too familiar. Let’s get our Vietnamese brothers back on shore. We brothers have taken a huge loss 🥲🥲🥲 https://t.co/ONRctD9gVD

$ZAMA TP1✔️ https://t.co/0QkGqmeAZd

➥ FHE could become one of the most important privacy upgrades for DeFi DeFi has a major problem atm: everything is too transparent. Wallet balances, collateral, order flow, trading strategy, liquidation levels, and LP positions can all be tracked. That creates a real problem for whales, market makers, funds, and protocols trying to build products that institutions can actually use. This is why I’m paying more attention to FHE. Fully Homomorphic Encryption allows smart contracts to compute directly on encrypted data, which means the logic can still run onchain while inputs, outputs, and state remain private. I think FHE can unlock a new layer of DeFi 👇👇 ⓵ Confidential lending Users can borrow, lend, post collateral, and get liquidated based on encrypted values without exposing their full position to the public. This matters a lot for whales and institutions because no one wants their collateral strategy to be copied, tracked, or hunted by liquidation bots. ⓶ Private order flow Private AMMs, private