Zoth Overview
Zoth - The RWA Liquidity Protocol
One of the significant challenges in the traditional financial landscape is the lack of seamless integration between real-world assets and blockchain technology. Many valuable Traditional Finance assets exist primarily in offline, non-digital formats. This lack of on-chain representation creates barriers to liquidity, transparency, and accessibility, limiting opportunities for efficient trading and broader investor participation. This problem hampers the democratization of asset ownership and inhibits the potential benefits that decentralized finance (DeFi) can offer.
Zoth addresses this challenge through an ecosystem of solutions that bridge the gap between traditional assets and the world of DeFi, unlocking the potential of previously illiquid markets and facilitating the seamless interaction between RWAs and the digital realm of DeFi.
In the coming years, the decentralized finance (DeFi) market is expected to experience significant growth, primarily driven by the inclusion of traditional finance markets. This expansion is particularly notable in the Fixed Income markets. The DeFi community is increasingly optimistic about investing in short-term US treasury bonds and traditional finance-based private credit loans, which offer higher yields and stability than lending to crypto-native protocols. However, the opportunities for the substantial amount of stablecoins on the blockchain, worth $135 billion, are mainly limited to developed traditional markets, with a limited focus on emerging markets.
Emerging markets, which exist between developing and developed stages, offer both rapid growth and substantial volatility. Private equity funds in emerging markets have outperformed those in developed markets in the past decade, attracting institutional investors seeking higher returns. Emerging markets are also undervalued compared to developed markets.
However, emerging markets face challenges due to bank-dominated financial systems and underdeveloped capital markets. Banks often prefer lending to larger enterprises with audited financial statements or high collateral requirements, leaving small and medium-sized enterprises (SMEs) struggling to access affordable financing. As a result, SMEs often resort to borrowing at higher interest rates.
Zoth acts as a connector between DeFi liquidity and real-world assets (RWAs), offering a solution for lenders in the DeFi space. Through the RWA Lending Pool, Zoth brings top-notch holdings into the hands of DeFi lenders. Through the platform's unique Tokenization module, Zoth ensures compliance with RWA collateral locked across multiple regions. With its liquidity module, Zoth establishes a framework for creating liquidity and additional utility for on-chain RWA-backed loans.
Last modified 3mo ago