zveUSD
What is zveUSD?
zveUSD is the ERC-4626 vault token of the Zivoe Protocol. When users deposit stablecoins into the Zivoe Lending Vault, they receive zveUSD, a token representing their proportional ownership of the vault’s assets.
The vault earns yield from real-world borrower repayments on unsecured consumer loans. As repayments flow back to the protocol through a bankruptcy-remote Special Purpose Vehicle (SPV), the value of zveUSD increases, reflecting the vault’s net asset growth over time.
zveUSD complies with the ERC-4626 tokenized vault standard, enabling compatibility with aggregators, interfaces, and other DeFi infrastructure.
zveUSD is expected to launch in May 2025.
Liquidity and Redemption
The Zivoe Vault is structured similarly to a closed-end fund, where liquidity is primarily facilitated through secondary markets. This design reflects the nature of the vault’s underlying assets, which are longer-duration consumer loans with repayment terms typically between 24 and 36 months.
Once the protocol reaches critical scale and liquidity conditions allow, Zivoe may introduce periodic direct redemption windows to offer an additional exit path for vault participants.
Secondary Market Liquidity
Shortly after launching, zveUSD will be tradable on supported selected exchanges, offering liquidity to participants who wish to exit or enter positions.
As apart of our efforts to ensure liquid markets for zveUSD, Zivoe has established a strategic partnership with Frax to support a Curve liquidity pool pairing zveUSD with frxUSD. This pool is jointly incentivized by Zivoe and Frax and uses the StableSwap implementation to ensure deep, low-slippage trading.
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