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.