Ecosystem Proposal: Zoth - Your Portal to Onchain Real World Assets

About Zoth

Zoth is an RWA ecosystem that connects liquidity across Traditional Finance and Onchain Finance, effectively expediting the influx of assets and capital between these sectors.

Zoth believes that the convergence of Traditional Finance and Onchain Finance is inevitable. Onchain finance is poised to experience a substantial influx of institutional capital amounting to trillions of dollars, coupled with the tokenization of high-market capitalization traditional assets.

Backed by SOSV, Blockchain Founders Fund, Chainlink, Momentum6, Borderless Capital, Mindfulness Capital and more.

ZOTH - FI Platform

The inaugural offering, ZOTH - Fixed Income (ZOTH-FI), represents an Institutional Grade Fixed Income Marketplace, that facilitates investor access to top-tier Fixed Income assets through Stablecoins. Zoth encompasses a diverse spectrum of asset classes including Cross Border Trade Finance, Sovereign Government Bonds, and Corporate Credit.

Value Proposition

• Bringing institutional grade RWA products to METIS:
  • Objective: Introduce stable yield-generating TradFi fixed income asset classes like tokenized Trade receivables, Treasury Bills, Sovereign Debt Bonds, Corporate Bonds etc. to the METIS ecosystem.
  • Strategy: Facilitates the on-chain presence of multi-trillion-dollar TradFi assets, accelerating liquidity influx into sustainable RWAs.
• Pioneering Liquidity Influx for METIS:
  • Vision: Lead the integration of substantial TradFi liquidity into DeFi, particularly into METIS.
  • Impact: Enhances the liquidity and financial options available on METIS, marrying the stability of TradFi with the innovation of DeFi.
• Community Engagement and Incentivization:
  • Collaboration with METIS Community: Plans to engage the METIS community actively through AMA, giveaways etc.
  • Campaigns/ Quests: Proposes incentivized testnet campaigns through a series of quests, rewarding participants for active participation.

Uniqueness Factor

Zoth is making significant strides in bridging traditional finance and decentralised finance, paving the way for creating a circular economy on-chain. Here's a summary of Zoth's early metrics, achievements, partnerships, and initiatives:

• Early Metrics: Credit Originated - $35 million, RWAs in pipeline - $140 million, Deployed/ Contracted - $6.5 million
• Created an ecosystem of 25+ partners, including XDC, Chainlink, Apex, EDB, Wormhole, Celo, Coface.
• Part of Chainlink BUILD, Fidelity FCAT, Mastercard Token Network.
• Operational Structure: Utilises a Custodian and a licensed issuer setup for its Luxembourg Special Purpose Vehicle (SPV).
• Backers/ Investors: SOSV, Blockchain Founders Fund, Momentum6, Borderless Capital, Mindfulness Capital l ,Yap capital,Singularity dao and more
• Founders are Ex- (Budweiser). Scaled Z-tech ( Fintech) to $300M AUM, Berkeley & Stanford Credentials

Benefits for Users

Zoth's Real-World Asset (RWA) offerings on METIS focus on fixed income products like premium short-term Trade finance receivables, Treasury Bills, Sovereign Debt Bonds, Corporate Bonds etc. These products are designed to provide stablecoin holders in the METIS ecosystem with secure, stable and sustainable real world yield in the range of 5% to 14% APY in stablecoins.

Tokenization of premium Short term trade receivables

Involves investing in premium USD receivables issued on global corporate giants like Budweizer, Costa Coffee, Zetwerk etc. The factoring company i.e. Zoth purchases these short-term invoices at a discount from suppliers and profits by collecting the full invoice amount from the large buyers. The goal is to generate returns by acquiring and collecting these high-quality receivables.

Asset class overview

• Trade financing is a thriving global industry valued at $4.16 trillion.
• As per the World Trade Organization, approximately 90% of worldwide trade transactions rely on trade financing services.
• The asset class maintains exceptionally low delinquency ratios, generally remaining below 1%.
• Stable yield between 9% to 14% APY.

Tokenization of U.S Treasury Bills, MENA sovereign Debt Bonds and Corporate Bonds.

Key Metrics

• Average Yield: 5-8% APR
• Subscription currency: USDC/ USDT/ USD etc.
• Network: METIS

Process

• Digital representation of the T-Bills/ Sovereign Bonds/ Corporate Bonds is created on-chain and Minted by depositing USDC/ USDT/ USD.
• T-Bills/ Sovereign Bonds/ Corporate Bonds are issued from Zoth’s regulated Luxembourg structure, through a licensed issuance partner.
• The Chainlink feed provides on-chain verification that tokens are fully supported in a 1:1 ratio by U.S. Treasury securities, USDC, and U.S. dollars.

Benefits for Metis Ecosystem

With the help of Zoth’s proprietary tokenization infrastructure traditional finance asset classes like Cross Border Trade Finance, Sovereign Government Bonds, and Corporate Credit are brought on-chain where METIS ecosystem stablecoin issuers can get exposure to these yield generating tokens via Zoth. The intent is to provide this highly secured asset class as a treasury management solution for the underlying assets which are backing the respective stablecoins in the METIS ecosystem.

Media

• Web3 Regulatory Sandbox launched by Telangana for startups to shape Web 3.0 policies and regulation
• INSIDE INDIA’S FIRST REGULATORY SANDBOX FOR WEB3 STARTUPS
• Zoth Concludes Successful Supply Chain Financing Pilots in Latin America on XDC Network blockchain
• SOSV backs 9 startups in latest accelerator cohort
• Graviton announces first cohort of Web 3 accelerator, seven Indian startups selected
• Wormhole Foundation, Borderless Capital, and Outlier Ventures Launch The Wormhole Base Camp Cohort
• Zoth Concludes Two Successful Supply Chain Financing Pilots in LatAm Funded By $FXD on XDC Network blockchain
• Web3 Accelerator Symbiote introduces inaugural startup Cohort
• Does private credit fill the financing gap for medium and startup companies in the MENA region?

Roadmap

Q1 2024:

• Testnet Launch
• Deployment on METIS Testnet

Q2 2024:

• Mainnet Launch
• Deployment on METIS Mainnet
• Multiple Fixed Income Asset Classes

Summary

The Zoth ecosystem bridges Traditional Finance with Onchain Finance, facilitating seamless asset and capital flow. Through Zoth-FI, it offers a robust marketplace for institutional-grade fixed income assets, enhancing liquidity and stability on METIS. With partnerships across industry leaders and a focus on tokenizing real-world assets, Zoth pioneers the integration of DeFi with TradFi, offering METIS community secure and high-yield investment opportunities. Explore Zoth's innovative solutions and join the future of finance today.

Official Links:

Website: https://zoth.io/ Zoth Marketplace: https://app.zoth.io/ Telegram Community：https://telegram.me/zothio Twitter：https://twitter.com/zothdotio LinkedIn: https://www.linkedin.com/company/zoth-io/