Zircuit Launches Zircuit Finance to Strengthen Security and Credit Reliability in DeFi

Zircuit, a zero-knowledge blockchain backed by YZiLabs, Dragonfly, and Pantera, has introduced Zircuit Finance — a platform built to address the rising credit and security risks across decentralized finance. With $3 billion in assets already secured, the platform debuts with an institutional-grade stablecoin vault offering up to 11% APY on USDC and USDT, and plans to expand to BTC and ETH.

Industry Failures Underscore the Need for Stronger Protections

The launch comes after multiple market setbacks shook confidence in DeFi. Credit incidents resulting in more than $90 million in losses showed the dangers of lending to unvetted entities, while security breaches in November 2025 led to over $100 million in losses at established protocols despite their compliance with best practices. These failures exposed persistent gaps in transparency, risk controls, and infrastructure — gaps Zircuit Finance aims to close.

Building DeFi on a More Secure Foundation

According to Co-Founder Dr. Martin Derka, the future of DeFi depends less on chasing yields and more on creating a reliable base for capital growth. He describes Zircuit Finance as part of a broader shift toward a more transparent, stable, and trusted on-chain economy designed for both institutional allocators and everyday users.

Institutional Partnerships Reduce Counterparty and Credit Exposure

To curb credit risk, Zircuit Finance works only with tier-one asset managers with established track records and strong balance sheets. Counterparties operate under a legal framework that enforces creditor rights, collateral standards, and default protections. The platform also requires ongoing exposure reporting to give real-time insight into how funds are deployed.

Diversified Strategies Across Regulated and Decentralized Venues

Zircuit vaults allocate capital across both regulated platforms and DeFi protocols. Monarq Asset Management, a regulated fund specializing in arbitrage and delta-neutral strategies, will manage a portion of assets. Additional integrations with Aave and Morpho diversify liquidity and improve withdrawal efficiency.

Partnerships Target Alpha in BTC and ETH

Zircuit is collaborating with Forteus, the FCA-regulated arm of Numeus Group, to develop alpha-driven investment strategies focused on Ethereum and Bitcoin. These complement Zircuit’s delta-neutral base, bringing additional risk-adjusted return opportunities under institutional oversight.

FalconX Powers Prime Brokerage and Execution

As part of its infrastructure, Zircuit is integrating with FalconX for custody, trade execution, and risk management. FalconX’s institutional-grade platform supports compliant and efficient deployment of capital across multiple venues.

Reinforced Security Architecture With Multi-Layer Defense

Zircuit Finance’s security model ensures that funds cannot leave the vault ecosystem without depositor authorization. The vault system — now undergoing audits by Quantstamp and Zenith — is partially insured through Chainproof and uses LayerZero’s secure messaging for authenticated cross-chain operations.

AI-Driven Network Security Extends Protection Beyond Smart Contracts

Vaults deployed on the Zircuit network benefit from the platform’s AI-powered Sequencer Level Security, which detects and isolates malicious transactions before they enter a block. This adds a blockchain-level defense layer, reinforcing Zircuit Finance’s goal of delivering institutional-grade safety for all users.