# Zoth Protocol Zoth caters to both **on-chain RWA holders and traditional fixed-income holders.** Users who already possess eligible on-chain RWA collateral can collateralize their holdings through Zoth’s escrow contracts. Traditional off-chain fixed-income holders, including investors in instruments such as Money Market Funds and Treasuries, can collateralize these assets via off chain escrow custody. Once assets are collateralized, Zoth issues **ZeUSD,** a dollar-pegged yield-bearing stable token backed by the RWA collateralized debt position. By allowing users to collateralize their eligible off-chain and on-chain RWAs, Zoth unlocks an opportunity to bring the $2 trillion worth of high-quality fixed-income instruments on-chain. Through ZeUSD, collateral providers can transform their non-productive RWAs into on-chain composable, yield-bearing stable tokens, improving their assets' overall liquidity and utility. This approach, coupled with the right incentives to the collateral providers, increases the net inflow of high-quality fixed-income instruments on-chain. While bringing the asset on-chain is the first step, creating a robust, permissionless DeFi layer is equally critical to realizing the full potential of RWAs. Zoth is not only enabling the permissionless on-chain layer for RWAs, but also constructing a fully composable, community-driven RWAFi ecosystem. We envision a future where the barriers of TradFi are eliminated and the benefits of RWAFi are accessible to all through a permissionless and transparent DeFi experience. > As the RWAFi ecosystem matures, Zoth Protocol blends TradFi and DeFi, enabling investors to seamlessly access fixed-income yields in a decentralized manner. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.zoth.io/zoth/getting-started-1/zoth-protocol.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.