sTokens

When capital sources deposit funds, they receive sTokens, representing their stake in loan portfolios. These sTokens automatically align with the underlying asset, such as sETH or sUSD, depending on the deposit (e.g., sETH for ETH deposits). sTokens accrue interest based on borrowing activity within the protocol and can be redeemed at any time for the underlying asset plus accrued interest.

Built on ERC standards, sTokens ensure compatibility with the broader Ethereum ecosystem, including wallets, exchanges, and other decentralized applications. This composability allows sTokens to be utilized beyond earning interest, facilitating the creation of new financial products and offering capital sources greater versatility, such as through forward flow securitization.

Forward flow securitization packages future receivables into securitized assets, freeing up capital for reinvestment. In Sivo DeFi, capital sources receive sTokens representing their share of loan portfolios. These sTokens accrue interest based on borrowing activity and can be bundled and sold as securitized products, providing investors with access to high-yield, asset-backed securities.