Yield Strategy
Zivoe finances and purchases interests in high-yield short duration private-credit portfolios originated by vetted lending partners.
How It Works
Zivoe connects on-chain liquidity to real-world credit markets by financing the origination of private credit assets or purchasing interests in existing portfolios. Holders of Zivoe’s vault token (zVLT) earn yield as borrowers within these portfolios make repayments.
Participation Agreement
The zVLT vault provides capital to originators through loan participation agreements, where the vault funds a portion of each underlying loan.
Originators originate and service the loans, while the zVLT vault shares in the performance of the portfolio proportionally to its participation amount.
These participations are held in Bankruptcy-Remote Special Purpose Vehicles (BK-SPVs), which serve as collateral for the on-chain financing structure.
As borrowers make repayments, cash flows are returned to Zivoe and accrue to holders of zVLT, reflected directly in the token’s price.
Credit Facility
Zivoe lends USDC to vetted originators through on-chain credit facilities.
Originators convert this on-chain liquidity to fiat and use it to finance consumer or business loans.
These portfolios are held in Bankruptcy-Remote Special Purpose Vehicles (BK-SPVs), which serve as collateral for the on-chain credit facilities.
As these portfolios generate returns that capital is returned to Zivoe where it accrues to holders of zVLT, reflected directly in the token's price.
Why Private Credit?
Private credit has become one of the largest and fastest-growing segments in alternative finance, exceeding $2 trillion globally. These markets supply essential capital to consumers and small businesses that are often underserved by traditional lenders, generating yield tied to real economic activity.
Private credit is compelling because it combines:
Predictable Cash Flows: Loans typically amortize over fixed repayment schedules, providing steady yield.
Diversification: Portfolios are composed of thousands of underlying borrowers or merchants, reducing concentration risk.
Attractive Returns: Private credit strategies have historically outperformed traditional fixed-income markets on a risk-adjusted basis.
By tokenizing access to these markets, Zivoe opens a historically institution-only asset class to a broader audience with enhanced transparency and liquidity.
Yield & Liquidity Model
Yield: Returns are generated through direct lending operations or participation agreements. As principal and interest are repaid, capital is continually redeployed into new loans, allowing portfolio earnings to compound over time. Yield is reflected through price appreciation of zVLT as the underlying assets accrue income.
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).
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