The Zoth protocol is a decentralized platform for listing real-world assets from emerging markets and creating liquidity for them on-chain. Onboarding an asset involves curation and due diligence, tokenization and listing, and liquidity management. The Zoth index fund facilitates the listing of assets and creates Zoth asset tokens that represent the value locked in the fund. Validators play an important role in asset validation and due diligence, and are compensated with ZOTH for their work. Lenders are incentivized to provide liquidity for the Zoth token as well as asset exchange. Zoth also provides liquidity incentives to liquidity providers who participate in liquidity pools. The Zoth LSP is a permission-less, on-demand liquid staking pool powered by institutional Defi liquidity players and market makers, enabling liquidity providers to earn high APR rewards.
On the Zoth platform, there are several stakeholders are involved in the process of onboarding real-world assets.
- 1.Asset Aggregators, FinTechs, and Credit Funds:
- These stakeholders collaborate with Zoth to curate assets from several regions including emerging markets.
- They identify and select real-world asset backed loans that have the potential to be tokenized and listed on the platform.
- Their role is crucial in sourcing diverse and attractive investment opportunities for the Zoth platform.
- 2.Zoth Asset Tokens
- ZAT is a token that represents the deposit made by Lenders in Zoth.
- Each ZAT token is pegged to a US Dollar backed by the collateral provided by borrowers.
- When Lenders provide liquidity, they receive an equivalent amount of ZAT tokens.
- ZAT tokens can be redeemed within the Zoth platform.
- 3.Zoth Tokens
- ZOTH serves as the core native token of the Zoth platform.
- ZOTH tokens are used for governance voting, validator rewards, liquidity staking rewards, community incentives and grants.
- 4.Zoth Validators:
- Zoth Validators play a critical role in performing due diligence on the curated assets.
- They ensure that the assets meet the investment criteria for the Index pool, including onchian compliance, collateral valuation, market liquidity, and potential returns.
- Validators contribute to maintaining the integrity and quality of assets listed on the platform.
- They provide consensus for the validation of assets to be onboarded onto the protocol.
- 5.Zoth Collateral Factory:
- Zoth utilizes a customized Collateral Factory contract and employs the ERC-1155 token standard for the tokenization process.
- The tokenization process involves converting real-world assets into digital tokens that can be traded and managed on the platform in the form of Zoth Asset Tokens.
- Zoth handles the tokenization process, enabling onchain representation and providing liquidity for previously illiquid assets.
- 6.Liquidity Providers:
- Liquidity providers participate in liquid staking pools on the Zoth platform.
- They contribute liquidity to the Zoth Asset tokens by depositing their assets, allowing for efficient secondary market and utility for Zoth Asset Tokens.
- Liquidity providers are incentivized with liquidity rewards in the form of Zoth Tokens to encourage their participation in the ecosystem.
- These rewards are generated from transaction fees or additional tokens provided by Zoth.
- 7.Zoth Emerging Market Lending Pool:
- The Zoth Lending Pool facilitates the listing of real-world assets backed lending opportunities from emerging markets onto the decentralized platform.
- It allows for the creation of Zoth Asset Tokens (mutualized tokens) that represent the real world collateral locked by the pool from borrowers.
- The lending pool provides investors with exposure to a diversified portfolio of assets, helping to manage risk and enhance investment opportunities.
- Borrowers are individuals or entities that wish to borrow from Zoth. Borrowers once verified have to submit to have their collateral assets on the Zoth platform.
- To have their assets listed on the platform, borrowers must stake a certain number of ZOTH tokens.
- This staking requirement and real world collateral helps ensure that borrowers have a vested interest in the success of their listed assets.
- 9.Zoth Pool Marketplace:
- The Zoth Pool Marketplace serves as a platform for listing multiple Lending Pools curated by Zoth.
- It provides a user-friendly interface for investors to browse and trade various RWA backed lending pools available on the platform.
- The marketplace enhances liquidity by connecting buyers and sellers, enabling efficient asset exchange.
- Lenders on the Zoth platform are incentivized to provide liquidity for the Zoth token as well as asset exchange.
- By providing liquidity, lenders help facilitate smooth trading operations and contribute to the overall liquidity pool.
- In return for their participation, lenders receive rewards from the platform.
- 11.Zoth LSP (Liquid Staking Pool):
- Zoth LSP is a permission-less, on-demand liquid staking pool.
- It is powered by Institutional DeFi liquidity players and Market Makers.
- Liquidity providers can participate in the Zoth LSP and earn high Annual Percentage Rate (APR) rewards for their contributions.
- The Zoth LSP allows liquidity providers to stake their tokens and maintain their staking rewards while also having access to liquidity for other purposes.
Zoth operates on a consensus model that validates every borrower and collateral within its ecosystem. This unique approach ensures that the protocol maintains a high level of trust and security. Central to this model are validators, whose active participation in liquid staking is essential for both validation and earning rewards.
Validators on Zoth play a critical role in achieving consensus and maintaining the integrity of the platform. By participating in liquid staking, validators demonstrate their commitment to the protocol's growth and security, aligning their incentives with the success of the ecosystem.
Through the consensus process, validators thoroughly examine each borrower and collateral. They employ rigorous checks, verifications, and assessments to ensure that all assets and borrowers meet the protocol's stringent criteria and adhere to its established standards. Validators act as guardians of the ecosystem, leveraging their expertise and diligence to establish a shared agreement on the validity and reliability of participants and assets.
By incentivizing validators through the liquid staking mechanism and ZOTH rewards, Zoth fosters a collaborative environment where participants actively contribute to the consensus process while earning rewards. This consensus-driven validation approach strengthens the overall security and trustworthiness of Zoth, offering users a reliable and secure lending ecosystem.
Zoth plays a crucial role in enabling the verification process and emphasizes the importance of KYC for ensuring compliance among lenders and borrowers. By implementing a seamless KYC process supported in multiple regions, Zoth ensures that each participant is a verified and unique entity. This KYC verification process is vital because it establishes trust and confidence in the platform. Lenders and borrowers who have undergone the KYC process demonstrate their onchain compliance with the users.