Zoth — an innovative blockchain project building a community-driven restaking layer for Real World Assets (RWA), bridging traditional finance with DeFi. Its core product is ZeUSD, a stable token backed by digitized assets such as U.S. Treasury Bills or ETFs. The platform offers multichain compatibility, institutional-grade security, and democratized access to liquidity. Recently, Zoth raised $15 million to scale its infrastructure and support the launch of the Token Generation Event. However, in March 2025 the protocol faced major security breaches, highlighting the urgent need for stronger protective measures.
Contents
- Project Overview
- How ZeUSD and RWA Restaking Work
- Funding and Ecosystem Growth
- Security and Critical Incidents
- Risks and Strategic Challenges
- Conclusion
1. Project Overview
Zoth is positioned as the world’s first community-driven restaking platform for RWAs. It breaks down barriers between traditional finance (TradFi) and decentralized finance (DeFi), offering multichain and modular solutions. According to official materials, the project issues ZeUSD — a permissionless, omnichain, and composable stable token backed by real assets, including U.S. Treasury Bills and ETFs. Data shows that the platform has created more than $250 million in assets, issued $30 million worth of ZeUSD, registered 1.8 million unique wallets, and built a community of over one million users. At present, Zoth operates across seven different blockchains. The project’s core mission is to scale RWAFi (Real-World Asset Finance) by creating infrastructure that combines the stability of traditional instruments with the flexibility of DeFi. Its goal is to democratize access to assets previously available only to institutional investors.
2. How ZeUSD and RWA Restaking Work
The Zoth model connects real assets with decentralized finance. The process is based on the issuance of ZeUSD, a stable token fully backed by traditional financial instruments and freely usable in DeFi. The mechanism can be described step by step:
- Users deposit on-chain or off-chain assets (Treasury Bills, ETFs, money market funds, or tokenized debt) into a secure vault.
- The assets are verified and evaluated according to a Loan-to-Value (LTV) ratio.
- A Collateralized Debt Position (CDP) is created, serving as collateral.
- Based on the collateral value, users receive a proportional amount of ZeUSD.
- ZeUSD is fully backed, algorithmically stable, and multichain compatible.
- The token can be used in DEXs, lending markets, liquidity pools, and yield farming strategies.
- Key advantages include transforming idle assets into yield-bearing ones, enabling cross-chain liquidity transfer, controlling issuance only through approved assets, and ensuring seamless DeFi integration.
In this way, ZeUSD functions not only as a stable token but also as a universal mechanism for integrating RWAs into blockchain ecosystems. It unlocks new liquidity sources and allows investors to deploy traditional assets in decentralized strategies without losing risk control.
3. Funding and Ecosystem Growth
Zoth’s growth has been actively supported by venture capital and strategic investors. Since its inception, the project has completed several important funding rounds:
- Seed Round (April 10, 2024): $2.5 million raised from Blockchain Founders Fund, Borderless Capital, Outlier Ventures, Wormhole, Decubate, and others.
- Strategic Round (August 5, 2024): $4 million raised with participation from Taisu Ventures, G20 Ventures, Gemhead Capital, DCI Capital, and other firms.
- August 2025: $15 million raised from Bolts Capital via token purchases. Funds were allocated to compliant on-chain Treasury products, support for the upcoming Token Generation Event (TGE), and scaling infrastructure.
In total, Zoth has raised about $21.5 million, strengthening its position to expand the RWAFi ecosystem and prepare for the public launch of the ZOTH token.
4. Security and Critical Incidents
In March 2025, Zoth faced two serious security incidents that exposed vulnerabilities in contract management and key custody. Key details include:
| Incident | Description | Consequence |
|---|---|---|
| First Exploit | Exploitation of logical flaws in liquidity smart contracts. | Loss of about $285,000. |
| Second Exploit | Compromise of a private key controlling proxy contract upgrades. The attacker upgraded the contract and drained funds. | ~$8.4 million stolen, swapped from DAI into ETH. |
In response, Zoth offered a $500,000 bounty for information leading to the identification of the attacker and recovery of funds. The incident highlighted the importance of using multi-signature (multi-sig) or MPC wallets instead of relying on a single private key with broad privileges.
These events emphasized a major blockchain risk — central points of failure. The Zoth team announced plans to strengthen its security strategy and upgrade access controls to reduce the likelihood of similar attacks in the future.
5. Risks and Strategic Challenges
Despite strong potential and growing investor interest, Zoth faces several challenges. Security remains one of the most resource-intensive areas, as infrastructure hardening, multi-sig adoption, and continuous audits demand significant time and capital. The 2025 incidents showed that breaches can erode trust and hinder user growth.
Another challenge is regulatory uncertainty. Tokenization of real-world assets such as bonds or real estate can face legal barriers across different jurisdictions. This is particularly relevant in TradFi markets, where strict compliance frameworks apply.
Competition in RWA-DeFi is also intensifying, with more projects exploring asset tokenization and stable instruments. To stay ahead, Zoth must maintain technological leadership, expand partnerships, and ensure liquidity resilience.
Additionally, gradual decentralization of governance remains a strategic goal. Moving toward a distributed model involves launching the ZOTH token, enabling wider community participation, and implementing DAO mechanisms. These steps will help strengthen trust and reduce risks associated with centralized decision-making.
6. Conclusion
Zoth represents an important step in bridging traditional finance with decentralized technologies through tokenization, restaking, and DeFi integration. The project has already shown results, including ZeUSD issuance, significant funding, and a growing community. At the same time, the 2025 exploits revealed the need for stronger security and more mature governance structures.
Before the public launch of the ZOTH token, the platform must reinforce its infrastructure, adapt to regulatory standards, and rebuild user trust. If successful, Zoth could secure a leading role in RWAFi and play a pivotal part in the mass tokenization of real-world assets.
