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 vibrant community on Telegram and become an active member, sharing ideas and insights.
  2. 2.
    Explore opportunities as a Lender in the Lending Pool.
  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?

No, Accredited Investor status is not 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 real-world assets validated by Zoth validators as collateral.

9. What happens if a Borrower defaults?

Invoice factoring deals are insured 90% by leading credit insurance companies. Zoth provides 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. Is it a security or utility token?

Zoth has two types of tokens.
The Zoth asset token:
Zoth Asset Tokens can represent a wide range of assets including asset leasing, Invoice Discounting and Commodities Asset-backed tokens represent real-world assets and use blockchain to securely save a record of these assets.
Zoth tokens are not security tokens, as they do not fall under Howey's test. Zoth provides enough decentralization on the platform and the token holders have complete control over their invested assets through Zoth's asset-based DAO. Zoth asset tokens represent the real-world collateral provided by the borrower for the loan, they also provide proof of ownership to the lender for lending to the pool.
The Zoth Platform Token:
Zoth platform token incentivizes creating liquidity to the Zoth asset tokens. Liquidity providers provide liquidity to the Zoth asset tokens by staking a fixed number of Zoth platform tokens on the Liquid staking pool. The tokens staked are used to provide an exit to the Lenders on an on-demand basis. The liquidity providers are incentivized to provide liquidity as they receive boosted yield from the fees collected on premature loan withdrawals and also staking yield.

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

Zoth asset tokens are stable, backed by real-world collateral on the lending pool. The asset token is pegged to the dollar and is backed by the collateral on the platform.
Zoth native platform tokens are not stable tokens. Zoth native tokens are the means we are raising our funds through SAFT.

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

New Zoth asset tokens are created when new loans are created on the pool. A new loan can be created when real-world collateral is added to the pool. This is under the control of the community of borrowers on the platform. Yes, the protocol has validators who validate the collateral and creditworthiness of the borrowers. Zoth asset tokens are created when the validators successfully validate the collateral.
Zoth protocol tokens are created when a transaction is executed by lenders, borrowers, and liquid stakes on the platform. The tokens are minted on the platform in the form of fees generated on the above transactions.

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.