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Your car broke down today, which is perfect timing – rent is due Monday. You’d like to keep this “having a place to live” streak going and weigh your options. 😫
You want to do the right thing.
The only option is a predatory loan… with a 300% APR. 😱
Legal? ✅
Profitable? ✅
Ethical? ⛔
This setup traps vulnerable people trying to make good on their promises in cycles of endless poverty. 💔
We see trillions in stimulus and subsidies. It’s mind-boggling that a short-term loan to someone in sincere need can end up as a pound of flesh extracted. 🍖
Enter Zivoe. They’re taking the teeth out of the predatory lending market, creating a fairer financial landscape for the populations that need it most. 💥
RWA World had the opportunity to sit down with the Zivoe team over Twitter and talk about predatory lending, how they’re solving it, and their thoughts on the future of tokenization.
Let’s pick up our story – you take the 300% APR loan because you really don’t have a choice. Oftentimes, not having access to credit plays a larger role than financial literacy. Banks are too slow, they don't do small-dollar loans, and you really need it… like, now. 😬
If you’re young and single, sleeping in your car for a day or two might not sound too bad. ⛺
Road trip! 🤠
But what if…
🧒 You have kids?
🥶 The heat doesn’t work?
🥵 The AC doesn’t work?
🔪 The area is dangerous?
Suddenly, it’s not fun anymore. And it’s on a daily basis for millions of people. 😔
Think it’s all platitudes and attitudes? 💅
Borrowing $3000 results in paying back over $10,000 in just over one year. Worse than any credit card. 😶
Tokenization is a powerful way to shine a light on the otherwise opaque predatory lending landscape. 🔦
Zivoe fills the vital role of bridge between the burgeoning and evolving world of decentralized finance (DeFi) and the more well-regulated yet potentially predatory markets of traditional finance (TradFi.) 🌉
Zivoe allows users to deposit their $USDC and other approved stablecoins into tranched pools in exchange for yield. There are currently two tranches available:
🧓Senior Tranche - provides yield and protection from defaults or losses of capital up to the notional value of the junior tranche.
🧒Junior Tranche - receives a higher yield but acts as first-loss capital in case of a loan default.
These options give users the opportunity to customize their risk profile when gaining exposure to high-yielding loans that make a discernable difference to at-need segments of the population. 🙌
Minting tokens from either tranche also qualifies you for some of Zivoe’s native tokens, which we’ll explore soon. 🤫
Tokenizing an industry isn’t something that happens overnight – existing standards and practices are the result of decades of work and experience, and new technology must integrate with established wisdom. ️
Zivoe isn’t letting that process slow it down its quest to end predatory lending practices. They've partnered with banks and credit unions that use fair practices to make a significant difference in their communities. 🏛️
These lenders receive the pooled capital aggregated in Zivoe’s lending pools and take it off-chain for real-world lending activity. 📜
Once completed, the capital plus yield is returned to Zivoe, which is brought on-chain, tokenized, and remitted to liquidity providers. 💱
A harmonious tokenization of real-world assets with a powerful purpose! The rewards are nice, too. 😄☯
Zivoe’s native token is at the heart of it all, with $ZVE primarily used for two things within the ecosystem:
The Zivoe DAO is publicly accessible and uses $ZVE tokens, with one token equaling one vote. Users vote on things like:
Stakers of $ZVE tokens retain a higher capital claim than either tranche, making staking an integral part of yield and risk management within the Zivoe ecosystem. This configuration aligns the incentive of token stakers with liquidity providers, motivating greater ecosystem participation and incentive alignment. ♻️
For borrowers, predatory lenders can feel like an endless nightmare. 😵
Zivoe is helping them wake up to the future of financial freedom and fair payment terms. 🚀
We recently did a deep-dive thread on them that you should check out! 🧵
They’re also fans of the database, so the feelings are mutual. 😊
And make sure to follow their Twitter for the latest updates and insights on what they’re working on! 👀
At RWA World, it’s our mission to amplify the voices of high-fidelity tokenization projects like Zivoe. 📣
Blackrock’s CEO just said that everything will be tokenized. 💽
And we’re ready. Are you? 😤
Let’s make sure:
✅ Check out the world’s largest database of tokenized real-world asset projects and initiatives.
✅ Subscribe to the RWA World Newsletter to get the latest news on tokenization before anyone else.
✅ Follow us on Twitter.
✅ Read this awesome article.
Oh yeah, you’re gonna make it. 😎
Until next time! 🚀
