TREE NEWS update: Zama has expanded its confidential Morpho lineup on Ethereum after its first vault reached $40 million in deposits. Users now get confidential access to 12 existing Morpho vaults on Ethereum, while four additional vaults have been created as confidential-only products. The company also launched private swaps on Ethereum.
Zama Expands Confidential Morpho Vaults After First Hits $40M, Adds Private Swaps on Ethereum
The confidential wrapper is the real story here: Zama is betting that privacy, not yield, is the missing feature that keeps institutional-size capital off public DeFi rails, and the $40M first vault gives that thesis an early datapoint. Extending the model to a dozen existing Morpho vaults plus dedicated confidential-only products suggests demand is coming from users who want Morpho's yield without exposing positions on-chain. The open question is whether confidential-only vaults fragment liquidity away from the public pools, and whether private swaps gain enough routing depth to matter beyond a niche.
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