ZeroFi Live on Testnet: Complete Airdrop Guide to Earn Free ZFI Tokens

Some of the most valuable crypto assets were never designed to interact with DeFi. Privacy first cryptocurrencies such as Monero and Zcash deliberately hide transaction details at the protocol level, making them incompatible with most smart contracts.

This architectural choice protects users but creates a clear limitation. These assets remain isolated from lending markets, decentralized exchanges, and composable DeFi strategies.

The ZeroFi Protocol addresses this gap by creating an external bridge layer that allows privacy coins to enter DeFi without altering their native design.

Key Takeaways

• ZeroFi Protocol enables privacy coins to access DeFi through wrapped assets
• The testnet is live and allocates 10% of total ZFI supply to an airdrop
• Users can bridge real XMR to zXMR on Ethereum Sepolia and redeem it back
• Airdrop eligibility depends on real usage and continued participation

What Is ZeroFi Protocol

ZeroFi Protocol is a cross chain infrastructure project designed to connect privacy native blockchains with EVM based DeFi ecosystems.

Rather than modifying Monero or Zcash, ZeroFi introduces wrapped ERC 20 assets known as zAssets. These tokens are fully backed and redeemable at a 1:1 ratio for the native coin.

The first implementation is zXMR, a wrapped version of Monero that can be used across smart contracts, liquidity pools, and other DeFi applications.

Read Also: DeepNode Free Crypto Guide: Latest Airdrop Walkthrough

Why Privacy Coins Cannot Natively Access DeFi

Monero and Zcash use privacy preserving transaction models by default. Sender, receiver, and transaction amounts are obscured onchain.

DeFi protocols require transparent balances and verifiable state. Smart contracts must be able to confirm collateral, liquidity, and historical activity.

This mismatch makes direct integration impractical. ZeroFi solves this by creating a separate, DeFi compatible representation without compromising base layer privacy.

How the ZeroFi Bridge Works

ZeroFi operates a permissionless bridge between privacy chains and EVM networks.

• Users deposit native assets such as XMR into a bridge address
• The protocol verifies the deposit through decentralized infrastructure
• A corresponding amount of wrapped tokens is minted on the destination chain
• Wrapped tokens can be burned to redeem the original native asset

This design keeps assets fully backed while enabling DeFi composability.

ZeroFi Testnet Overview

The ZeroFi testnet is currently active and open to public users. It allows bridging real XMR from the Monero mainnet to zXMR on Ethereum Sepolia.

Because this is experimental infrastructure, users are advised to proceed cautiously. All interactions should be done with fresh wallets and minimal funds.

According to official documentation, anyone who uses the bridge during the testnet and early mainnet beta phase will be eligible for the ZFI airdrop.

ZFI Token Airdrop Details

ZeroFi has allocated 10% of the total ZFI token supply for airdrops.

• Rewards are based on meaningful protocol usage
• Transaction size is not the primary factor
• Repeated participation and feedback matter
• Advanced roles such as node operation may increase allocation

This structure is designed to reward genuine contributors rather than one time users.

Read Also: Mercury Airdrop Guide: Your Free Crypto in the AI Sector

Step by Step Guide to ZeroFi Testnet Airdrop

Wallet Setup

Start by creating wallets dedicated only to testnet usage.

• Create a fresh Monero wallet using an official client
• Fund it with a small amount of real XMR
• Create a new EVM wallet such as MetaMask or Rabby
• Switch the EVM wallet to Ethereum Sepolia
• Claim test ETH from a faucet for gas fees
• Add zXMR as a custom token so balances display correctly

Avoid using wallets that hold meaningful funds.

Wrapping XMR to zXMR

To bridge XMR into DeFi:

• Connect your EVM wallet to the ZeroFi bridge
• Select the XMR to zXMR direction
• Generate a Monero deposit address
• Send a small amount of XMR to that address
• Wait for confirmations on the Monero network
• Click Mint zXMR once the deposit is detected

The interface may feel slow due to direct node queries.

Unwrapping zXMR Back to XMR

To complete a full bridge cycle:

• Switch the bridge direction to zXMR to XMR
• Enter your own Monero wallet address
• Confirm the burn transaction
• Wait for native XMR to be released

Completing both directions demonstrates full protocol usage.

Advanced Testnet Participation

ZeroFi also supports deeper testnet involvement beyond basic bridging.

• Claim testnet ZFI tokens
• Follow official GitHub documentation to run a node
• Form clusters, stake, and delegate ZFI
• Process bridge transactions

Node operators earn rewards from bridging fees and ZFI token inflation.

Risks and Best Practices

ZeroFi remains experimental infrastructure.

• Always use small transaction amounts
• Expect delays and UI inconsistencies
• Use fresh wallets with no significant funds
• Share feedback through official channels

Careful participation reduces risk and improves contribution quality.

Final Thoughts

ZeroFi Protocol targets a long standing limitation in crypto. Privacy coins have historically been excluded from DeFi despite holding significant value and user demand.

By introducing a permissionless, fully backed bridge, ZeroFi opens a new design space without compromising privacy principles. The testnet airdrop provides early users with exposure to a novel infrastructure layer at an early stage.

For users comfortable with experimental systems, ZeroFi represents a compelling and differentiated opportunity.

Read Also: Brevis (BREV) Airdrop Meaning and How to Claim

FAQs

What is ZeroFi Protocol

ZeroFi Protocol is a permissionless bridge that enables privacy coins to interact with DeFi through fully backed wrapped assets.

What is zXMR

zXMR is a 1:1 wrapped version of Monero that can be used on EVM networks and redeemed back for native XMR.

How much ZFI is allocated to the airdrop

10% of the total ZFI token supply is reserved for airdrops.

Does the testnet use real XMR

Yes. The ZeroFi testnet requires bridging real Monero from mainnet.

Does transaction size affect airdrop eligibility

No. Eligibility is based on real usage and participation rather than transaction size.

Is ZeroFi safe to use

ZeroFi is experimental. Users should proceed cautiously and limit funds when testing the protocol.