FAQ
Your guide to understanding ZAMICA
Frequently asked questions about tokenized gold, ZAM, ZAMIC, lending, farming, and ESG.
Frequently Asked Questions
Answers below summarize official ZAMICA materials.
What exactly is tokenized gold?
Tokenized gold is a digital asset backed by physical gold.
What advantages does tokenized gold have over physical gold?
Tokenized gold offers easier liquidity, fractional ownership, and faster cross-border transfers compared to physical gold, which requires storage and handling.
What is a ZAM?
ZAM is a gold-backed RWA token representing 0.01 grams of physical gold. On ZAMICA, it functions as the principal mechanism for gold investment and may also enable lending and farming services.
Can individual users purchase tokenized gold on the ZAMICA platform?
Yes. ZAMICA is preparing to launch ZAM for individual users. ZAM can be purchased through the ZAMICA mobile application using user-to-user trading or purchase-from-foundation options.
Is there a purchase limit for ZAM?
There is no fixed purchase limit for individual users. However, ZAM can only be issued up to the value of gold-backed assets held by the ZAMICA Foundation.
How is ZAM connected to real physical gold?
Each ZAM is backed by 0.01 grams of physical gold, held through bank-offered gold deposits or physical bullion under certified custody.
Gold reserves are intended to be independently audited and periodically disclosed.
What is a ZAMIC token?
ZAMIC is both a payment method and a credential for lending and liquidity-provider services on the ZAMICA platform. ZAMIC is also designed as a tradable token available through exchanges.
Can ZAM tokens be exchanged for ZAMIC tokens on ZAMICA?
The ZAMICA app does not provide a direct ZAM-to-ZAMIC or ZAMIC-to-ZAM purchase feature. ZAM can only be purchased using USDT or USDC.
Beyond gold price gains, are there other ways for ZAM owners to grow assets?
Yes. ZAM owners can farm ZAM through liquidity providers and earn rewards. Users may also act as lenders or liquidity providers, depending on platform eligibility.
Is it possible to use ZAM as collateral for a loan?
Yes. Users can pledge ZAM as collateral to borrow USDT or USDC from lenders. Interest rates and repayment terms vary by lender and product.
What does a user need to do to become a lender?
Users must stake a certain amount of ZAMIC with the Foundation to obtain lender eligibility. The scale of loan funds they can manage is determined by the amount and value of staked ZAMIC.
What assets can be borrowed on the ZAMICA platform?
Lenders provide loans only in USDT or USDC.
Must ZAM always be pledged as collateral?
Yes. To minimize lender risk in case of default, ZAM must be pledged as collateral.
What happens when a loan term ends?
ZAM pledged as collateral is automatically unlocked by the smart contract and returned to the borrower after principal and interest obligations are settled.
What happens if a borrower defaults?
If a borrower defaults, the smart contract automatically liquidates locked ZAM tokens. Outstanding principal and interest are deducted, and any remaining value is returned in USDT or USDC.
What is the ZAMIC ESG Pool?
The ZAMIC ESG Pool is dedicated to supporting interest-free or low-interest loans through partner institutions serving students, women seeking self-reliance, small business owners, and farmers.
Why is ZAMICA ESG called a principal-recoverable donation?
Participants purchase ZAMIC allocated for ESG activities. Those tokens are locked for a period, and after the lock period ends, the tokens are unlocked and returned to participants.