[Proposal] Sivo - Portfolio Manager: Embedded Lending Jr/Sr Pools

Hey TrueFi Community!

We are Sivo, a first of its kind debt-as-a-service company that provides the APIs, tech stack and the $$ to enable software and web3 companies around the world to lend to their users. We’re a profitable, YCombinator backed startup with billions in demand for our debt-as-a-service product. We raised $15M from equity investors and have a pipeline of companies (we call them “Originators”) wanting to borrow from us to fund their users. We want to give the TrueFi community the opportunity to tap into the growth of this massive, new asset class of global embedded loans.

What we do

Sivo is Debt-as-a-Service. Our APIs enable Originators to lend at scale. Our Originators are some of the most innovative and well-backed lenders on the planet, including the Robinhood of Latin America; the largest POS software provider to North American independent gas stations; US and Non-US neobanks; and multiple innovative partners helping low middle income residents of the US manage their cash flow. We explicitly do not work with any Originator engaged in predatory lending - we’re in this to change the world for the better and don’t have time for abusive practices.

We are believers in the web3/crypto ecosystem (we already fund several crypto lending programs) and are excited to partner with the TrueFi community. We are creating two investment pools on TrueFi and expect to bring $100M - $200M onto TrueFi within 12 months.

Who is managing the fund

Your Sivo team managing the fund has decades of experience in finance and lending. We’ve earned our lending stripes at regulated banks, global microlenders, Lending Club, Revolut and more. We’ve driven hyper-growth, managed through workouts and built successful loan programs on four continents. We’re excited to grow with this opportunity AND we know how to say no to bad deals.

Portfolio description

We are offering a unique opportunity to TrueFi lenders - USDC loans secured by pools of high-quality fiat loans with an opportunity for TrueFi lenders to participate as Senior or Junior lenders.

Capital raised from TrueFi lenders will be lent, alongside Sivo capital, to Sivo’s Originators to fund their portfolios. You will be funding innovative lenders around the world. Sivo underwrites the Originator and connects to their loan management system to get real-time data on their portfolio performance. Capital from TrueFi Lenders is only invested in Debt lines to Originators who have already proven themselves on the Sivo platform.

Transaction structure

We are offering the TrueFi community two opportunities to participate in the growth of this exciting new market. We will set up two financing pools on the TrueFi protocol:

Senior: This pool will lend to Sivo Originators in the lowest risk position (in TradFi terms “first out”). The Senior pool gets first access to all interest and principal payments from Sivo Debt lines and maintains conservative repayment ratios. Senior lenders will receive a target rate of return of 7% (annual). With $TRU incentives following the recent proposal, Senior lenders can expect total returns on their 365 day loan to range between: >20% for early money and 9-11% for later money in.

Junior: This pool will lend to Sivo Originators in the second lowest risk position (in TradFi terms “second out” position). The Junior pool gets second access to all interest and principal payments from Sivo Debt lines. Sivo will pay Junior lenders a target stablecoin rate of return of 12% (annual). With $TRU incentives, Junior lenders can expect total returns on their 365 day loan to range between: >20% for early money and 14-16% for later money in.

Sivo maintains a 10-50% stake in all Sivo Debt lines and is always in the highest risk position relative to TrueFi Lenders (we value your capital and make sure that you get paid before we do).


Twitter: @headlessfinance
Linkedin: Sivo


Looking at questions the community has had for other Portfolio Managers, a few clarifications for y’all:

  • The loans that Sivo makes with the capital borrowed from the Community are backed by high-performing Real World Assets

  • The capital raised from the TrueFi Community will represent less than 20% of total capital raised - we are excited to build the DeFi to TradFi bridge but also not solely reliant - we think its good practice to maintain diverse funding sources

  • We’re excited to hear your feedback - let us know if you have questions / comments / concerns!