Mint: gaining exposure
Last updated
Last updated
Zona's RWA Minter product offers access to two types of RWAs: synthetic assets tied to a price feed (i.e. real estate tokens tied to an median price per sqft index price) and also tokenized assets backed by 1:1 underlying offchain assets (i.e. gold or oil ETFs).
Synthetic assets are tokens that track a price index of an RWA, without an actual underlying asset offchain. Users can minted and backed by a pool of collateral (such as USDT and USDC) deposited by users. These assets will be pegged to Zona’s price feeds, and will initially include assets as crude oil, rare metals, and Zona Real Estate Indexes (which track the median price per square foot of properties in major cities around the world).
As synthetic assets are representation tokens that only track the price of the underlying asset, there is no tokenization of the underlying asset involved. This allows users to easily gain exposure to exotic assets such as oil, natural gas, uranium, real estate, and more. In additional, users can gain leveraged long or short exposure to the asset of their choice by lending or borrowing via our specialized RWA lending platform
Zona will initially be supporting our specialized Real Estate Index Tokens, which allow users to speculate on global property prices starting with just $1 (more information in Section 3). We will also be supporting a range of commodities and foreign currencies, starting with oil, natural gas, uranium, Japanese Yen, and more.
How is the peg between the synthetic asset and the index price maintained?
The peg is maintained by the Zona Peg Stability Module (PSM). When the price of the synthetic asset is above the index price, users can mint additional synthetic assets at a discount to its current price on liquid markets, sell the newly minted tokens, and earn an arbitrage profit. When the synthetic asset is below the index price, users can buy discounted synthetic assets on liquid markets and repay their debt on Zona at a cheaper rate.
Actual RWAs will be minted upon a user’s request. For example, when a user requests to tokenize an ETF, they must first deposit the value they wish to mint to Zona via stablecoins. Zona will then acquire these assets offchain and mint a corresponding RWA token to the user. The underlying assets will be under Zona’s custody until the user chooses to redeem the RWA token for their offchain representation.
Zona will initially offer tokenized ETFs and REITs, allowing users to earn real yield onchain, while also unlocking additional capital efficiency via our specialized RWA lending platform.
