Zoth offers higher yield staking opportunity for stablecoins which comes from real world financing options such as invoice factoring. This is more risky than peer-to-peer loan on crypto collateral because if Zoth goes bankrupt from a series of illiquid investment with high default rate, there is no way to know what would happen to the collateral. Unlike Aave, where the collateral is locked in the smart contract, so readily available at the event of a default by the loaner. Regardless, if lenders can get 15%, the extra risk is probably worth it. For companies looking for lenders, they now have a better option than traditional banking which is good.
I doubt, I'd be a customer as a lender, but maybe one day I'll use as a loan taker. Not sure if the company will do well, it will be a lot of work, time spent in court going after loaners that default (or selling the distressed assets to 3rd parties but at lower value). It really doesn't feel much of a decentralized process that benefit from blockchain except for the lending part. Show Less
