Yield Strategy

Zivoe generates yield by financing the origination of new consumer loans in partnership with trusted originators.

How It Works

Zivoe has partnered with Zinclusive, a regulated consumer finance company, to finance the origination of new consumer loans. Investors in Zivoe's vault token (zVLT) earn yield as consumer borrowers pay back their loans.

1. Zivoe lends USDC to Zinclusive via an on-chain credit facility.

2. Zinclusive off-ramps this USDC and lends it out thousands of consumers off-chain. The average loan originated by Zinclusive is ~$3,300.

3. The consumer loans are packaged into a Bankruptcy-Remote Special Purpose Vehicle (BK-SPV), which serves as collateral for the on-chain credit facility between Zivoe and Zinclusive.

4-5. As consumer borrowers payback their loans, Zinclusive uses the proceeds to repay the on-chain credit facility. Interest earned from the on-chain credit facility is distributed to investors in Zivoe's vault token (zVLT).

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Why Consumer Credit?

Consumer credit is one of the largest and most resilient asset classes in private credit, exceeding $1.5 trillion in the U.S. alone. Demand for personal credit remains strong across business cycles, offering investors a durable opportunity to earn attractive returns.

Zivoe’s team brings decades of experience in consumer finance, credit risk, and structured lending. This expertise allows us to identify strong originators, structure risk appropriately, and actively manage performance throughout the loan lifecycle.

This segment is uniquely compelling because it combines:

• Predictable Cash Flows: Short-duration loans with steady repayment schedules provide consistent, recurring cash flow to investors.

• Diversification Benefits: Small loans spread across thousands of borrowers reduce risk and lead to predictable portfolio performance.

• Compelling Yield: Consumer credit has historically delivered strong risk-adjusted returns relative to other private credit and fixed-income strategies.

By tokenizing consumer credit, Zivoe opens this unique asset class to a new generation of on-chain investors while delivering institutional-grade protections and transparency.

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Yield & Liquidity Model

• Target Yield: 14%-17% APY (net of management fees)

• Incentives: Additional incentives may be paid out to investors in the form of points or ZVE, Zivoe's governance token.

• Management Fee: Zivoe earns a 15% share of all revenue generated by the protocol to fund operations and maintain Zivoe's infrastructure.

• Liquidity: Instant liquidity is available via Primary (Zivoe) and Secondary Markets (DEXs).