zVLT
What is zVLT
zVLT is the ERC-4626 vault token of the Zivoe Protocol. When users deposit stablecoins into the Zivoe Lending Vault, they receive zVLT, 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 zVLT increases, reflecting the vault’s net asset growth over time.
zVLT complies with the ERC-4626 tokenized vault standard, enabling compatibility with aggregators, interfaces, and other DeFi infrastructure.
zVLT will be accessible through the dApp when our new version launches in late June 2025.
An audit of the vault tokens can be found here:
https://amp.runtimeverification.com/public-report/zivoe-vault
Minting & Upgrading
Minting zVLT tokens is achieved in two different manners, either by interacting with ZivoeRouter which will accept stablecoins (USDC, USDT, etc.) and handle the minting automatically for you. Alternatively, if you already own zSTT tokens and wish to upgrade, simply deposit them via the dApp (you may need to unstake stSTT to receive zSTT , the dApp will help facilitate this for you).
Underlying Asset & Auto-Compounding
Under the hood, zVLT owns stSTT which is where all yield from Zivoe is directed. stSTT receives USDC yield in a streamed fashion similar to Sablier, as interest payments vest out linearly over a 30 day period. Whenever yield is claimable (which is every second), there is an option to compound. There is massive efficiency in having the vault own all stSTT and auto-compound the yield, as users benefit and build equity in their position faster, increasing long-term yield.
In the future when looping is supported, 15%+ base yields will be amplified to 25%+ and the nature of auto-compounding will have drastically increased effects:
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, zVLT 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 zVLT, Zivoe has established a strategic partnership with Frax to support a Curve liquidity pool pairing zVLT 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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