Yield Strategy
Zivoe finances and purchases interests in short-duration private credit portfolios originated by established lending partners.
How It Works
Zivoe connects on-chain liquidity to private credit markets through participation agreements with established originators. The vault deploys capital directly into underlying loans alongside the originator, and 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, under which the vault funds a portion of each underlying loan.
Originators originate and service the loans, while the vault shares in portfolio performance proportionally to its participation amount.
These participations are held in special purpose vehicles (SPVs) structured to segregate assets, which serve as collateral for the on-chain structure.
As borrowers make repayments, cash flows return 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 of alternative finance, exceeding $2 trillion globally. These markets supply essential capital to consumers and small businesses underserved by traditional lenders, generating yield tied to real economic activity.
Zivoe focuses on short-duration strategies within this market, which combine:
Recurring cash flows: Short repayment cycles generate frequent, recurring cash flows, allowing capital to be redeployed continuously and performance to be observed earlier than in longer-dated credit strategies.
Diversification: Portfolios are composed of thousands of underlying borrowers or merchants, reducing concentration risk.
Attractive risk-adjusted 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 with enhanced transparency.
Yield & Liquidity Model
Yield: Returns are generated through participation agreements and direct lending operations. 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 made available to depositors in the form of points or ZVE, Zivoe's governance token.
Management Fee: Zivoe earns a 15% share of revenue generated by the protocol to fund operations and maintain protocol infrastructure.
Liquidity: zVLT redemptions are processed directly by Zivoe. Holders may request redemption by contacting investors@zivoe.com, with proceeds settled in stablecoins following processing. Because deployed capital is invested in short-duration credit assets, redemption timing may vary based on available protocol liquidity.
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