Zoth
The decentralized finance (DeFi) sector and its collaboration with traditional finance (TradFi) are gaining increasing attention. A key aspect here is the tokenization of real-world assets (RWA), which converts them into tokens on the blockchain.
Traditional businesses, especially in developing countries, often struggle to secure the necessary financing to grow and compete with larger and more established companies due to higher interest rates. Statistics show that the credit gap for companies in emerging markets is nearly $5 trillion. Business loan interest rates in these markets are typically three times higher than in developed countries.
On-chain finance promises to break down global barriers, facilitating the free flow of capital worldwide. This development leads to more open, transparent, and efficient access to finance. It is achieved by transferring a significant amount of assets and liquidity from traditional finance (TradFi) to on-chain finance (Onchain Fi or DeFi), underpinned by blockchain technology.
The convergence of traditional finance and on-chain finance is inevitable.
So how can various traditional assets be represented in the DeFi world?
Through tokenization.
On-chain finance can experience a significant influx of institutional capital thanks to the tokenization of traditional assets.
To implement this approach, the Zoth project was created.
In the near future, the boundaries between TradFi and DeFi will be blurred, opening up new opportunities for increased liquidity and efficient tokenization mechanisms for RWA assets. Real estate, corporate bonds, or stocks can all be represented as digital tokens on the blockchain. These tokens can then be sold, borrowed, or used as collateral and borrowed against on the Zoth platform.
The tokenization of real-world assets opens up the DeFi sector to vast financial markets. For example, global real estate was valued at $327 trillion in 2020, and non-financial corporate debt exceeded $87 trillion in 2022. These markets offer significant liquidity and potential for attracting new investors through tokenization.
Zoth provides individuals, companies, and asset owners with access to real assets from emerging markets, unlocking a wide range of investment opportunities.
ZothFi β institutional-grade marketplace. Using their stablecoins, investors can earn a fixed income. This is achieved by utilizing RWA assets from emerging markets, where yields are higher.
Zoth tokenizes RWA assets from emerging markets and creates liquidity for them on the network. The registration of an RWA asset on the blockchain includes curation, comprehensive verification, tokenization, platform listing, and liquidity management. The Zoth platform enables crypto investors to earn high, safe, and stable returns from RWA.
Liquidity pools β crucial component of the Zoth platform.
They serve three primary functions:
- Facilitate the listing of RWA assets on the platform, acting as a bridge between TradFi and DeFi.
- Provide lenders the opportunity to lend their stablecoins for interest, using RWA assets as collateral. Asset owners can sell or pledge their RWA assets, quickly obtaining loans.
- Validators play a vital role in the Zoth ecosystem. They participate in the comprehensive verification of RWA assets before their tokenization and receive rewards for their work.
The platform supports the listing of RWA assets from various financial sectors, such as accounts receivable, private loans, and sovereign bonds.
Sovereign bonds from emerging markets (EMD) β debt securities issued by the governments of developing countries to attract capital from investors worldwide. According to JPMorgan Chase, the EMD market is valued at approximately $7.8 trillion.
Receivables β money, goods or services that counterparties owe to an entrepreneur or organisation. If a company urgently needs money and debtors have not yet paid, the receivables can be tokenised on the Zoth platform and then sold, or a loan can be obtained against them.
Zoth Atlas
To attract a wide range of retail investors to the ZothFi platform, a dedicated marketing product β Zoth Atlas, has been created.
The Zoth Atlas platform includes a reward system in the form of points for participating in various tasks, such as staking tokens or engaging in social media activities. This helps users earn rewards and increase their interaction with the Zoth platform. As a result, more Web3 users become aware of the earning opportunities using RWA within the Zoth ecosystem.
Zoth provides investors and asset managers with high-yield, low-risk opportunities and fixed interest rates.
The ecosystem consists of:
- Tokenization infrastructure
- Zoth project product portfolio
β’ Institutional: trade finance, liquidity pool
β’ Retail: DeFi protocol where users can interact with financial products without the approval of central authorities, ensuring accessibility, transparency, and autonomy of blockchain operations. - Distribution network β’ Partner network, including Mastercard, Standard Chartered, Coinbase, and over a million Zoth Atlas wallets.
- Partner network and crypto community
Key offerings of Zoth:
- Verified and insured assets from emerging markets.
- Transparency of blockchain transactions.
- Access to fast-growing sources of liquidity.
- Accelerated capital movement β faster transactions through stablecoin payments.
Licenses and partnerships
Strict compliance with regulatory requirements ensures that investment management is conducted in a secure environment that meets regulatory standards in multiple jurisdictions. The project has already obtained three licenses, allowing operations with RWA assets: UAE, Singapore, and Luxembourg.
The scale of the project is also reflected in the level of its strategic partnerships: international payment system Mastercard, Standard Chartered Bank, American financial holding Fidelity, and exchange Coinbase.
Team
The founding team has experience in fintech and alternative asset investment at AB InBev.
The founders of Zoth recognized the opportunities blockchain technology offers for integrating RWA assets into online finance, leading to the creation of Zoth.
A large, strong, and experienced team of twenty developers based in Dubai and Singapore.
- Pritam Dutta β co-founder and CEO.
Previously served as Managing Director of Venture Capital and Innovation at AB InBev, where he built a fintech business with $300M in assets under management.
Established an investment fund with $30M in assets under management. Launched an NFT collection for Budweiser with $50M in revenue.
https://ae.linkedin.com/in/pritamdutta - Koushik Bhargav β co-founder and CTO.
Former Head of Fintech and Web3 Innovation at AB InBev. Blockchain technology expert. Ethereum Fellow. Winner of over 15 international hackathon awards.
https://in.linkedin.com/in/bhargav-muthe - Parshavv Om Jain β COO and head of legal.
Previously worked at leading global companies such as KPMG and Deloitte.
https://ae.linkedin.com/in/iamparshavvomjain - Murali Nandini β head of partnerships.
Previous experience includes Budweiser and Fintellix.
https://in.linkedin.com/in/muralikumarnandini - Prathyush Prasad β head of strategy and risk.
Previously worked at Web3 companies Oasis Labs (developing platforms for data privacy and security in blockchain applications) and Orion Protocol (decentralized platform aggregating liquidity from various crypto exchanges into one interface).
https://in.linkedin.com/in/prathyush-prasad-defipratz-eth-951974153 - Philip Lord β head of business development.
Formerly worked at Nomura (investment and financial services company based in Japan), HSBC (major international banking and financial corporation), and Jefferies (international investment bank and financial company).
https://ae.linkedin.com/in/philliplord
Investors
A significant number of renowned names among the venture investors of the project:
- Outlier Ventures β highly reputed crypto fund investing in blockchain projects since 2014. The fund is famous for being one of the best crypto startup accelerators in the world. Their "Base Camp" project regularly conducts themed camps with early-stage developer teams, helping them develop their projects and investing in the best among them. In the early stages, the project went through Outlier Ventures' incubation, allowing the team to gain experience and connections.
- The project was invested in by Circle executives β creators of the USDC stablecoin, which will be actively used on the ZothFi platform, have also invested in the project.
- Borderless Capital βAn investment fund specializing in developing and investing in blockchain and cryptocurrency projects. Notable projects in their portfolio include Filecoin, Kraken, Polkadot, Polygon, Raydium, and LayerZero.
- G-20 group β A major market maker providing liquidity to projects and an investment fund managing assets. G-20 has been operating in Switzerland since 2010 as an asset manager and advisor to institutional clients. They are involved as both a market maker and an investor, participating in the same round as Insider Club.
The project has also received significant grants from top crypto projects Ripple (XRP), Chainlink, and Wormhole, which funded the integration of their technologies into the ZothFi ecosystem.
Token Utility
$ZOTH β ERC20 token, is an integral part of the protocol, helping to reduce reliance on centralized third-party services.
- Incentivizing liquidity providers.
- Rewarding creditworthy borrowers.
- Establishing a DAO.
- Creating a network of RWA validators.
Key functions of the $ZOTH token:
- Governance Encouraging community participation in voting on important platform development issues. Verifying borrowers and managing the platform.
- Platform revenue share Commission fees from investors are redistributed among token holders and validators. Fees are collected in the treasury.
- Staking and validation rewards Stakers and validators receive rewards for participating in protocol governance and voting. Rewards are proportional to the number of staked tokens.
Tokenomics
- Token: $ZOTH
- Network: Base (Ethereum L2)
- Total tokens in circulation: 1 billion
- Round: Private
- Round size: $2.5 million
- Token price: $0.04
- Round valuation: $40 million (Launch valuation β $120 million, price $0.12)
- Conditions: 7% unlock at TGE, 6-month cliff, followed by linear unlock over 17 months.
- TGE: Q3 2024
The project will be launched on Ape Terminal, ChainGPT and Singularity lunpads.
Listing is planned on ByBit, MEXC, Gate exchanges.
Social networks & links
π Website: https://zoth.io/
π Documents: https://docs.zoth.io/zoth/
π¦ Twitter/X: https://x.com/zothdotio
π» Discord: https://discord.com/invite/xBZhGn4AH8
π» Telegram: https://telegram.me/zothio
π» Medium: https://medium.com/@zoth.io
π» Warpcast: https://warpcast.com/zoth
π» LinkedIn: https://www.linkedin.com/company/zoth-io/
A popular project: 136k followers on Twitter/X, 122k on Discord, and 24k on Telegram. Social media is actively managed, with the team regularly announcing partnerships with numerous projects.
Zoth β interesting and promising project with a highly relevant narrative around RWA. The world is moving towards widespread asset tokenization, and Zoth is one of the flagships of this tokenization, with a massive amount of RWA assets to be listed on its platform, drawing significant attention to the project.
Strong investors, partnerships with the world's largest financial corporations, and a large, experienced team. The opportunity to enter the project on very favorable terms. It is recommended to add this sought-after and potentially top-tier project to your crypto portfolio.