🏦Lending: leveraged exposure

ZonaLend allow users to deposit and borrow in-house RWAs tokenized by Zona, third-party RWAs tokenized by other issuers, and crypto-native assets such as USDT, USDC, WETH, and others.

The first RWA to be supported will be Zona's in-house Parkhub Tokens, which represent a share of a portfolio of parking spaces tokenized and managed by Zona. Parkhub Tokens provide users with a safe baseline yield of ~5%, delivering strong risk-adjusted returns.

What are some example use-cases?

1. Leveraged long: Users can deposit PARK tokens as collateral, borrow stablecoins, use stablecoins to purchase additional PARK tokens, deposit them, and repeat. This looping mechanism functions as a leveraged long on PARK token prices and enhanced exposure to rental income generated by PARK.

2. Leveraged short: Users can deposit USDT as collateral, borrow PARK tokens, use PARK tokens to purchase additional stablecoins, deposit them, and repeat. This looping mechanism functions as a leveraged short on PARK, allowing users to profit if the value of the tokenized parking spaces falls. Note that as PARK is a yield-bearing asset, users who choose to short in this manner will be accruing additional debt from the rental income generated by PARK.

3. 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.

What will the Maximum Loan-to-Value (LTV) be?

Maximum Loan-to-Value (LTV) ratios will differ per asset based on volatility and available liquidity. For PARK tokens, the initial LTV ratio will be set at 50%, with further adjustments after a period of monitoring.