Work

Zolvency: The Zero-Knowledge Solvency Layer for the RWA Economy

Year: 2025

Type: article

Abstract: Decentralized Finance (DeFi) faces a "Capital Inefficiency Trilemma," relying on overcollateralization due to a lack of off-chain financial identity. This paper introduces Zolvency, the Zero-Knowledge Solvency Layer—a cryptographic infrastructure bridging this gap. By utilizing zkTLS for authenticated data extraction from Web2 sources (e.g., tax portals, banking apps) and zkVMs (SP1) for verifiable computation, Zolvency issues privacy-preserving Soulbound Tokens (SBTs) that attest to financial solvency. This enables under-collateralized lending for Real World Assets (RWA) in emerging markets, unlocking liquidity while preserving user privacy and data sovereignty.

Source: Zenodo (CERN European Organization for Nuclear Research)

DOI: 10.5281/zenodo.17750483

Author: Nunes, Felipe

Language: English

Topic: Blockchain Technology Applications and Security

Subfield: Information Systems

Field: Computer Science

Domain: Physical Sciences

Open Access status: green

OpenAlex ID: W7107972707

FWCI:

Cites:

Cited by:

Related to: