Zoth Protocol

RWAfi space continues to evolve, Zoth Protocol integrates TradFi with DeFi, enabling investors to participate in fixed-income opportunities in a seamless and decentralized manner.

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, treasury securities, or private credit, can collateralize these assets via off chain escrow custody.

Once assets are collateralized, Zoth calculates the Loan-To-Value (LTV) ratio of the eligible collateral and issues ZeUSD, a dollar-pegged yield-bearing stable token backed by the RWA collateralized debt position.

ZeUSD is designed to be composable within the DeFi ecosystem, meaning it can integrate seamlessly with other blockchain applications. As an omni-chain token, ZeUSD operates across multiple blockchain networks, boosting both liquidity and utility.

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 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.