Financial model
Offer revolving credit products like charge cards or invoice factoring, exchanging future revenue. Sivo DeFi encourages low-cost, non-predatory lending.
As a loan originator, here’s how the Sivo DeFi model works and how you earn:
Loan Approval and Disbursement: Once a loan is approved, funds are disbursed at a discounted face value of the future revenue exchanged.
Fee Deduction and Cash Collateral: Fees for the cost of capital and risk mitigation, including cash collateral and currency risk, are withheld from the disbursed amount, accounting for the discounted face value.
Proceeds Distribution: The remaining proceeds, after deducting fees and collateral, are distributed to you.
Borrower and Marketing Funds: This distribution includes capital to fund the loan and 20% of the loan amount for marketing and incentives that drive consumer purchases, helping repay the loan.
Residual Funds: Any remaining funds can be used for your operating expenses.
Performance Fees: Throughout the loan, you earn performance fees, facilitated by the DEX pool, which provides market-driven valuations on your tokenized collateral.
By driving consumer traffic to the borrower, you can potentially earn over 100% effective APR, while your borrower benefits from low-cost or interest-free credit and gains new customers.
Updated 27 days ago