SINGAPORE, May 9, 2025 – Zoth, a rapidly developing protocol for real-world asset (RWA) tokenization, is embarking on a new stage following a security exploit in March that briefly impacted its ZeUSD platform. Rather than remaining silent, the team responded transparently and swiftly, reaffirming its dedication to creating secure, institutional-level infrastructure for onchain RWAs.
A Resilient Response
The exploit involved unauthorized activity on the protocol as Zoth was expanding its mainnet and preparing for its token launch. The team reacted quickly and calmly, containing the issues, keeping users informed, and implementing mitigation measures without delay.
Founder Pritam Dutta stated, “It would have been easy to give up. However, we designed Zoth to be resilient.” This philosophy guided every aspect of the recovery.
Strengthening the Foundation
Zoth’s recovery focuses on building a more robust system, not just applying temporary solutions. The protocol has implemented significant upgrades, including:
- AI-driven real-time monitoring
- Independent audits of smart contracts
- A public bug bounty program and open-source infrastructure
- Enhanced governance for secure future upgrades
Zoth also introduced a Compensation Program to assist affected users, utilizing a combination of treasury-backed assets, vested $ZOTH tokens, and potential partnerships – a rare action in DeFi that helped rebuild trust.
Community-First Approach
A hybrid model was implemented to prioritize the preservation of capital and the sustainability of the protocol. The package includes:
- Compensation with stable assets for principal losses
- Vested $ZOTH tokens from the contributor and ecosystem reserves
- Active discussions with a liquid fund to facilitate user redemptions
This balanced strategy resonated with users, resulting in retention rates above 80%, and the community remained actively involved in governance and recovery planning.
Staying Mission-Driven
Zoth’s long-term vision remains consistent: to connect real-world financial instruments, like treasury bills and money market funds, with permissionless yield on-chain. However, this is being pursued through a compliance-focused design and institutional-grade security, rather than short-lived trends.
“Zoth is not a DeFi casino,” said co-founder Koushik Bhargav. “We are developing public goods infrastructure for RWAs.”
Strategic Backing
Zoth obtained a $15M strategic token commitment from Bolts Capital, demonstrating institutional confidence in the protocol’s future and the wider potential of onchain RWAs.
What’s Next
Zoth is implementing a phased relaunch of ZeUSD with an emphasis on long-term resilience. Guided by forensic specialists and new security leadership, upcoming milestones include:
- Relaunch with risk-isolated vaults
- Liquidity partnerships across ecosystems
- Onboarding of institutional clients
- DAO-driven governance improvements
Resilience Over Hype
Zoth’s recovery is not just about recovering; it’s about establishing a new standard for RWA infrastructure: one that is transparent, durable, and based on principles.
“We may have been hit hard, but we’re not done. Not even close.” Zoth Founders
About Zoth
Zoth is a decentralized infrastructure protocol that facilitates compliant tokenization and on-chain settlement of real-world assets, such as treasury bills and sovereign debt. Designed for institutional-grade security and capital efficiency, Zoth aims to transform how RWAs are moved on-chain.
Press Contact
Name: Pritam Dutta
Company: Zoth
Email:
Phone: +91 9510733901
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SOURCE Zoth