General FAQs

1. How does Zoth collateralize real-world assets on the chain?

Tokenization digitizes ownership, enhances liquidity, reduces barriers to entry, and enables a broader investor base to participate in previously inaccessible markets. Zoth’s tokenization factory creates tokens representing the collateral submitted by the borrower in the form of Zoth Asset Tokens, manages the asset transparently, and enables secondary market trading for liquidity.

2. Who can invest through Zoth?

Zoth is currently open for Institutions and Accredited Investors.

3. How can a user invest through Zoth?

To begin your journey as an investor with Zoth, connect your wallet and complete the KYC/KYB process. After successful registration, you will gain access to comprehensive details of the RWA opportunities listed on our platform, empowering you to make informed investment decisions.

4. How do I interact with Zoth?

There are various ways to actively engage with the Zoth protocol. Here are the top methods to get involved:
  1. 1.
    Join our community on Telegram and become an active member, sharing ideas and insights.
  2. 2.
    Explore opportunities as an Investor in the upcoming pools.
  3. 3.
    Consider becoming a borrower to Lending Pools, offering support and backing to borrowers.
By participating in these avenues, you can actively contribute to and benefit from the Zoth ecosystem.

5. Is Accredited Investor status required to participate in Zoth's Lending Pool?

Yes, Accredited Investor status is mandatory to participate in Zoth's Lending Pool.

6. Can users onboard using a wallet?

Zoth supports onboarding through the MetaMask wallet. Our roadmap also includes expanding onboarding through other wallet providers as well.

7. What is the currency of the loans?

All loans are in USDC. We are planning on allowing support for other cryptocurrencies as well.

8. What is the underlying collateral?

Borrowers on the protocol submit RWAs validated by Zoth validators as collateral.

9. What happens if a Borrower defaults?

For instance, Invoice factoring deals are insured 90% by leading credit insurance companies. Zoth provides a 10% first-loss guarantee for end-to-end coverage.

10. What are the deals available on Zoth?

Introducing our highly anticipated private credit opportunity! Invest in premium USD receivables from renowned corporations like Walmart, IKEA, Urban Outfitters, and more. Our factoring company purchases short-term invoices at a discount and profits by collecting the full amount
Type: Private Credit
Invoice Factoring
Pool Capacity: 200,000 USDC
Average Yield in APR: 12%
Loan Duration: 90 days

11. How do you avoid the signed RWA being collateralized on different platforms multiple times?

We currently work with trusted intermediaries and credit scoring companies who essentially validate if the collateral has already been collateralized. We also ensure we have proper documentation and also rigorous due diligence done on the borrowers and collaterals on the pool.

12. Can the collaterals be redeemed?

The collaterals cannot be redeemed until the loan tenure is matured. The only way to redeem the collateral is by paying off the loan that was issued.

13. What are the tokens available on Zoth?

Zoth has two types of tokens.
The Zoth asset token:
Zoth Asset Tokens are LP tokens provided to Lenders as a proof of participation. One can redeem ZAT after the maturity period is over.
Zoth Token ($ZOTH):
$ZOTH is the native token of Zoth ecosystem, Tokenomics is designed to ensure there is a circular economy for the Zoth ecosystem. $ZOTH will be instrumental in:
• Incentivizing Liquidity Providers (LPs).
• Rewarding creditworthy borrowers.
• Establishing a DAO for foundation operations.
• Creating an RWA validator ecosystem.

14. If it's a stablecoin, where would your reserves be held? What is this pegged to?

Zoth asset tokens are not stablecoins. They are LP tokens provided to lenders as proof of participation. They are not Tradable or Transferable. Furthermore, they can ONLY be redeemed on the Zoth platform after the maturity of the pool.
Zoth native platform tokens ($ZOTH) are not stable tokens. Zoth native tokens are the means we are raising our funds through private rounds.

15. Will the token minting protocol be controlled by your team or network validators?

Token minting and burning is completely controlled by Zoth DAO.

16. Who will own and manage the token treasury?

The Zoth Foundation manages the token treasury, until the token launches through TGE. Post the launch of the token, the treasury is managed by the Zoth DAO.

17. Will tokens be distributed by a smart contract or by your team?

The tokens will be distributed automatically by the smart contract whenever an event happens on the platform.

18. Will a DAO or the project team control the initial mint?

The Zoth foundation will control the initial mint of the token. Specific details are mentioned in the report on the initial mint.

19. How can I get updates by Zoth Protocol?

To stay updated with the latest happenings and updates of the Zoth protocol, subscribe to the Zoth Medium page and follow us on Twitter. Alternatively, join our telegram group for additional real-time updates.
By utilizing these channels, you'll have access to the latest news, developments, and updates related to the Zoth protocol.