Tranches

Overview

Until the upcoming launch of zveUSD, Zivoe operates using a two-tranche structure to provide access to yield from consumer credit portfolios. This system allowed users to select between different levels of risk and return.

At present, only the Senior Tranche remains open for deposits. The Junior Tranche has been deprecated and is no longer accepting deposits.

In May 2025, Zivoe will transition to a unified vault model with the launch of zveUSD, a tokenized vault share that simplifies participation and enhances liquidity. This migration will improve scalability, reduce complexity, and unify capital under a more flexible structure.

This page serves as a reference for users currently interacting with the legacy tranche system.

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Senior Tranche

The Senior Tranche is currently the only tranche accepting new deposits. It provides fixed-yield exposure to Zivoe’s portfolio of consumer loans.

• Receives principal and interest repayments after the protocol fee is deducted from the loan cash flows

• Has priority over the Junior Tranche in the repayment waterfall

• Offers a lower risk profile and more stable return structure

• Backed by loans held within a bankruptcy-remote Special Purpose Vehicle (SPV)

Deposits into the Senior Tranche return zSTT tokens at a 1 to 1 ratio. To earn yield, users must stake their tokens through the Zivoe dApp. Participants may also receive ZVE token incentives based on tranche size and ongoing rewards.

While the Senior Tranche will continue to exist within the protocol infrastructure, all new capital will flow through zveUSD starting in May 2025. The zveUSD vault will serve as Zivoe’s unified, ERC-4626-compliant product moving forward.

Junior Tranche

The Junior Tranche continues to exist for current holders, but it is no longer accepting new deposits. As part of Zivoe’s transition to a unified vault structure, the Junior Tranche will be phased out and will not be included in the forthcoming zveUSD model.

Holders of zJTT will be able to migrate their tokens into zveUSD once it launches in May 2025. A step-by-step migration guide will be provided prior to the launch.