Bridging DeFi with Real World Assets
We are pleased to announce that Fuji is collaborating with Zoth in using DeFi to leverage Real World Assets (RWAs).
The collaboration sees Zoth leveraging Fuji Finance’s cross-chain money market aggregator to deploy stablecoins into Real World Assets, which in the case of Zoth, are insured, structured credit products from emerging markets.
By leveraging Fuji, Zoth is able to find some of the best market rates to get the cheapest liquidity, on stablecoins from DeFi Money Markets. The Zoth team is looking to harness existing DeFi liquidity by partnering with liquid staking derivatives (LSD) platforms, stablecoin protocols and DAO treasuries to generate RWA yield on Native tokens of these various DeFi protocols. By using Fuji’s technology, Zoth can borrow stablecoins (USDC, USDT etc.) on top of these native tokens (LSD tokens, blue chip assets, or other supported assets) and subsequently deploy the stablecoins into their RWA pools to generate competitive yield.
The steps that occurs here are:
- Depositing LSD tokens, blue chip assets (e.g. wBTC/ETH), or other assets that are supported, into a Fuji Vault. The tokens can automatically be routed to whichever market provides the best borrow rate (depending on what debt asset you select).
- The Tokens get deposited into a specific Fuji Vault, which deposits into one (or multiple) money markets to give you the best rate possible.
- The USDC is borrowed, and then sent to the borrower’s address on the chain of their choosing.
- The USDC is received and then deposited into a Zoth vault.
This debt position can then be paid back by Zoth to receive the collateral back in return (the collateral is the asset initially deposited by Zoth).
The benefit of using Fuji allows for two things from the borrower’s perspective. First, they can access liquidity for borrowing from any chain of their choosing since Fuji is natively cross-chain. Secondly, by using Fuji’s technology, you can get some of the best market rates through our rebalancing technology.
We are excited to be working together with Zoth. They are building an interesting solution to offer users extremely competitive yield with RWA, and we are thrilled that their team is leveraging Fuji’s technology!
- Boyan Barakov, Co-Founder of Fuji Finance
We believe that this Partnership with Fuji will help us tap into various liquidity sources from within the DeFi realm, and leverage their technology to ease the access to RWA yield for DeFi users. We are thrilled to be partnering with the Fuji team to execute this!
- Pritam Dutta, CEO & Founder of Zoth
While we are excited about the opportunities that this collaboration enables, we are going to explore future ways that we can work together. Stay tuned for future developments!
About Zoth
Zoth is a decentralised platform that enables anyone in the world to access real world, alternative assets from emerging markets using tokenization and blockchain technology through Defi. The Zoth ecosystem acts as a bridge between asset owners (deal originators), individual investors and institutions to bring on-chain a robust, highly liquid and coherent line of structured and secured credit products.
About Fuji
Fuji Finance is building the first cross-chain money market aggregator and previously built the first borrowing aggregator on Ethereum. Use Fuji Finance to make borrowing and lending in DeFi, simple. Save time & money when taking out DeFi loans.
