The first private lending Vault on Morpho, powered by zama cUSDC, lets you earn yields in DeFi without exposing your positions or fund flows. This is a real-world use case of compliant privacy in DeFi. Here’s how this Vault works: if you deposit through the zama app, your USDC will automatically be Shielded into cUSDC (or you can directly deposit cUSDC). The system then batch processes once every 24 hours, updating users' Vault shares. The publicly visible data only shows the incremental/decremental changes from each batch update, while individual users' amounts, deposit/withdrawal times remain private and confidential. Additionally, Morpho's strategy parameters and collateral support are public, striking a balance between users' need for privacy and the necessary transparency in DeFi for risk monitoring and audits. In the future, zama plans to upgrade to a native private ERC-4626, eliminating the need for batch processing and enabling internal net settlement. The current base yield is 3.6%, and there’s a 12-week incentive program to watch out for, with the highest rewards in the first two weeks, gradually decreasing afterward.