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

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.