🏦Lending: leveraged exposure

Zona's lending platform allow users to deposit and borrow synthetic assets and RWAs minted on Zona, allowing them to unlock additional capital. All RWA tokens will be available as both supply-side and borrow-side markets, in addition to USDT, USDC, WETH, and others. Maximum Loan-to-Value (LTV) ratios will differ per asset based on volatility and liquidity.

What are some example use-cases?

1. Leveraged long: Users can deposit a synthetic representation of Dubai property prices (Dubai Tokens) as collateral, borrow stablecoins, use stablecoins to purchase additional Dubai Tokens, deposit them, and repeat. This looping mechanism functions as a leveraged long on Dubai real estate prices, allowing users to earn increased profits if the index value rises.

2. Leveraged short: Users can deposit stablecoins as collateral, borrow Gold ETF Tokens, use Gold ETF Tokens to purchase additional stablecoins, deposit them, and repeat. This looping mechanism functions as a leveraged short on Gold, allowing users to earn increased profits if the index value falls.

3. Hedging: Users can deposit Dubai Tokens as collateral, borrow Oil ETF Tokens as a hedge, use Oil ETF Index Tokens to purchase additional Dubai Tokens, deposit them, and repeat. This allows users to gain leveraged exposure to Dubai real estate, while implicitly shorting oil prices as a hedge.

4. Non-RWA exposure: In addition to RWAs, Zona's lending product will also support other crypto-native assets such as USDT, USDC, WETH, and others. If users only want exposure to crypto assets, Zona's lending platform is also able to function as other regular lending platforms do.