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Real-World Asset (RWA) credit protocol Zivoe has announced that it will launch on July 31, 2024.
The launch will be a major step in utilizing blockchain technology to democratize access to credit. It is also a major milestone in Zivoe’s quest to bridge the gap between decentralized finance (DeFi) and the traditional financial (TradFi) sector.
Revolutionizing Credit Access
Zivoe is poised to disrupt the multi-billion dollar high-interest consumer lending market. By connecting global DeFi liquidity to private credit markets, Zivoe aims to channel much-needed capital into underserved areas, making credit more accessible and affordable for everyone.
Additionally, Zivoe seeks to introduce consumer loans as a new source of Real-World Assets in DeFi markets, enriching the ecosystem with yield opportunities derived from real economic activity.
In the initial stages, the platform will issue on-chain loans to a strategic and regulated partner, which will unlock better interest rates for consumers. Going forward, Zivoe will then engage directly with consumers to further integrate on-chain financial systems with traditional credit frameworks.
In tandem with its launch, Zivoe will initiate its Initial Tranche Offering (ITO) as well. This is a novel liquidity bootstrapping mechanism that is designed to attract significant Total Value Locked (TVL). Liquidity providers (LPs) can then deposit stablecoins into either Zivoe’s senior or junior tranches to receive Tranche Tokens in return.
With these tokens, holders will gain access to risk-stratified exposure to Zivoe’s loan portfolio, which is secured by a special purpose vehicle (SPV) backed by cash flows from consumer loans. Participants will also be able to stake these tokens to earn yields from real-world consumer loans.
What’s more, ITO participants will be eligible to receive Zivoe’s native governance and utility token, $ZVE, which will be airdropped as a reward for their participation in the platform’s governance framework. The ITO is scheduled to commence on July 31, 2024, and will run for 30 days.
Strong Backing and Visionary Leadership
Led by a team with extensive experience in both TradFi consumer lending and DeFi, Zivoe has successfully raised $8.35 million in a funding round featuring prominent investors such as Andrew Keys, Iceberg Capital, and Concave.
“We are thrilled to reach this significant milestone and introduce an innovative solution to the traditional lending industry,” said Zivoe’s Founder and General Counsel, Kristal Gruevski.
“Our ITO will provide DeFi users (US Accredited Investors and Non-US persons only) with unprecedented access to the consumer credit market. This marks the beginning of a new era where blockchain technology and real-world lending converge. We are excited to help millions of underserved individuals worldwide while bringing a new RWA to DeFi, ” Gruevski added.