diff --git a/src/contracts/AbstractARM.sol b/src/contracts/AbstractARM.sol
index 245613a..dbdaf48 100644
--- a/src/contracts/AbstractARM.sol
+++ b/src/contracts/AbstractARM.sol
@@ -104,7 +104,9 @@ abstract contract AbstractARM is OwnableOperable, ERC20Upgradeable {
 
     address public capManager;
 
-    uint256[43] private _gap;
+    address public zap;
+
+    uint256[41] private _gap;
 
     ////////////////////////////////////////////////////
     ///                 Events
@@ -121,6 +123,7 @@ abstract contract AbstractARM is OwnableOperable, ERC20Upgradeable {
     event FeeUpdated(uint256 fee);
     event FeeCollectorUpdated(address indexed newFeeCollector);
     event CapManagerUpdated(address indexed capManager);
+    event ZapUpdated(address indexed zap);
 
     constructor(address _token0, address _token1, address _liquidityAsset, uint256 _claimDelay) {
         require(IERC20(_token0).decimals() == 18);
@@ -424,6 +427,22 @@ abstract contract AbstractARM is OwnableOperable, ERC20Upgradeable {
     /// @param assets The amount of liquidity assets to deposit
     /// @return shares The amount of shares that were minted
     function deposit(uint256 assets) external returns (uint256 shares) {
+        shares = _deposit(assets, msg.sender);
+    }
+
+    /// @notice deposit liquidity assets in exchange for liquidity provider (LP) shares.
+    /// This function is restricted to the Zap contract.
+    /// @param assets The amount of liquidity assets to deposit
+    /// @param liquidityProvider The address of the liquidity provider
+    /// @return shares The amount of shares that were minted
+    function deposit(uint256 assets, address liquidityProvider) external returns (uint256 shares) {
+        require(msg.sender == zap, "Only Zap");
+
+        shares = _deposit(assets, liquidityProvider);
+    }
+
+    /// @dev Internal logic for depositing liquidity assets in exchange for liquidity provider (LP) shares.
+    function _deposit(uint256 assets, address liquidityProvider) internal returns (uint256 shares) {
         // Calculate the amount of shares to mint after the performance fees have been accrued
         // which reduces the available assets, and before new assets are deposited.
         shares = convertToShares(assets);
@@ -432,17 +451,17 @@ abstract contract AbstractARM is OwnableOperable, ERC20Upgradeable {
         IERC20(liquidityAsset).transferFrom(msg.sender, address(this), assets);
 
         // mint shares
-        _mint(msg.sender, shares);
+        _mint(liquidityProvider, shares);
 
         // Add the deposited assets to the last available assets
         lastAvailableAssets += SafeCast.toInt128(SafeCast.toInt256(assets));
 
         // Check the liquidity provider caps after the new assets have been deposited
         if (capManager != address(0)) {
-            ICapManager(capManager).postDepositHook(msg.sender, assets);
+            ICapManager(capManager).postDepositHook(liquidityProvider, assets);
         }
 
-        emit Deposit(msg.sender, assets, shares);
+        emit Deposit(liquidityProvider, assets, shares);
     }
 
     /// @notice Preview the amount of assets that would be received for burning a given amount of shares
@@ -599,6 +618,13 @@ abstract contract AbstractARM is OwnableOperable, ERC20Upgradeable {
         emit CapManagerUpdated(_capManager);
     }
 
+    /// @notice Set the Zap contract address.
+    function setZap(address _zap) external onlyOwner {
+        zap = _zap;
+
+        emit ZapUpdated(_zap);
+    }
+
     ////////////////////////////////////////////////////
     ///         Performance Fee Functions
     ////////////////////////////////////////////////////
diff --git a/src/contracts/Interfaces.sol b/src/contracts/Interfaces.sol
index e453356..408f0f6 100644
--- a/src/contracts/Interfaces.sol
+++ b/src/contracts/Interfaces.sol
@@ -110,6 +110,7 @@ interface IOethARM {
 interface ILiquidityProviderARM is IERC20 {
     function previewDeposit(uint256 assets) external returns (uint256 shares);
     function deposit(uint256 assets) external returns (uint256 shares);
+    function deposit(uint256 assets, address liquidityProvider) external returns (uint256 shares);
 
     function previewRedeem(uint256 shares) external returns (uint256 assets);
     function requestRedeem(uint256 shares) external returns (uint256 requestId, uint256 assets);
diff --git a/src/contracts/ZapperLidoARM.sol b/src/contracts/ZapperLidoARM.sol
index d127740..945f46f 100644
--- a/src/contracts/ZapperLidoARM.sol
+++ b/src/contracts/ZapperLidoARM.sol
@@ -41,10 +41,7 @@ contract ZapperLidoARM is Ownable {
         weth.deposit{value: ethBalance}();
 
         // Deposit all WETH to LidoARM
-        shares = lidoArm.deposit(ethBalance);
-
-        // Transfer received ARM LP shares to msg.sender
-        lidoArm.transfer(msg.sender, shares);
+        shares = lidoArm.deposit(ethBalance, msg.sender);
 
         // Emit event
         emit Zap(msg.sender, ethBalance, shares);
diff --git a/test/fork/Zapper/Deposit.t.sol b/test/fork/Zapper/Deposit.t.sol
index 7d8449e..eb54f1c 100644
--- a/test/fork/Zapper/Deposit.t.sol
+++ b/test/fork/Zapper/Deposit.t.sol
@@ -5,6 +5,7 @@ pragma solidity ^0.8.23;
 import {Fork_Shared_Test_} from "test/fork/shared/Shared.sol";
 
 // Contracts
+import {CapManager} from "src/contracts/CapManager.sol";
 import {ZapperLidoARM} from "contracts/ZapperLidoARM.sol";
 
 contract Fork_Concrete_ZapperLidoARM_Deposit_Test_ is Fork_Shared_Test_ {
@@ -14,10 +15,13 @@ contract Fork_Concrete_ZapperLidoARM_Deposit_Test_ is Fork_Shared_Test_ {
         vm.deal(address(this), DEFAULT_AMOUNT);
     }
 
-    function test_Deposit_ViaFunction() public setLiquidityProviderCap(address(zapperLidoARM), DEFAULT_AMOUNT) {
+    function test_Deposit_ViaFunction() public {
         assertEq(lidoARM.balanceOf(address(this)), 0);
         uint256 expectedShares = lidoARM.previewDeposit(DEFAULT_AMOUNT);
+        uint256 capBefore = capManager.liquidityProviderCaps(address(this));
 
+        vm.expectEmit({emitter: address(capManager)});
+        emit CapManager.LiquidityProviderCap(address(this), capBefore - DEFAULT_AMOUNT);
         vm.expectEmit({emitter: address(zapperLidoARM)});
         emit ZapperLidoARM.Zap(address(this), DEFAULT_AMOUNT, expectedShares);
         // Deposit
@@ -25,12 +29,16 @@ contract Fork_Concrete_ZapperLidoARM_Deposit_Test_ is Fork_Shared_Test_ {
 
         // Check balance
         assertEq(lidoARM.balanceOf(address(this)), DEFAULT_AMOUNT);
+        assertEq(capManager.liquidityProviderCaps(address(this)), capBefore - DEFAULT_AMOUNT);
     }
 
-    function test_Deposit_ViaCall() public setLiquidityProviderCap(address(zapperLidoARM), DEFAULT_AMOUNT) {
+    function test_Deposit_ViaCall() public {
         assertEq(lidoARM.balanceOf(address(this)), 0);
         uint256 expectedShares = lidoARM.previewDeposit(DEFAULT_AMOUNT);
+        uint256 capBefore = capManager.liquidityProviderCaps(address(this));
 
+        vm.expectEmit({emitter: address(capManager)});
+        emit CapManager.LiquidityProviderCap(address(this), capBefore - DEFAULT_AMOUNT);
         vm.expectEmit({emitter: address(zapperLidoARM)});
         emit ZapperLidoARM.Zap(address(this), DEFAULT_AMOUNT, expectedShares);
         // Deposit
@@ -39,5 +47,6 @@ contract Fork_Concrete_ZapperLidoARM_Deposit_Test_ is Fork_Shared_Test_ {
 
         // Check balance
         assertEq(lidoARM.balanceOf(address(this)), DEFAULT_AMOUNT);
+        assertEq(capManager.liquidityProviderCaps(address(this)), capBefore - DEFAULT_AMOUNT);
     }
 }
diff --git a/test/fork/shared/Shared.sol b/test/fork/shared/Shared.sol
index bb6073d..915c9bd 100644
--- a/test/fork/shared/Shared.sol
+++ b/test/fork/shared/Shared.sol
@@ -169,6 +169,9 @@ abstract contract Fork_Shared_Test_ is Modifiers {
 
         // --- Deploy ZapperLidoARM ---
         zapperLidoARM = new ZapperLidoARM(address(weth), address(lidoProxy));
+
+        // Set zap address in LidoARM.
+        lidoARM.setZap(address(zapperLidoARM));
     }
 
     function _label() internal {