Revenue-based financing for live entertainment venues
TIX Credit is a decentralized credit protocol that provides upfront capital to live event venues—arenas, theaters, concert halls, and clubs—secured by exclusive ticketing rights through the TIX Protocol.
Targeting 10-15% APR, it functions like a high-yield bond index tied to ticket revenue from income-generating entertainment venues. Like most synthetic dollar protocols, the three key aspects of TIX Credit are:
USDtix — a fully-backed synthetic dollar
sUSDtix — the yield-bearing token (counterpart to USDtix)
Yield — how the protocol generates yield for sUSDtix
USDtix or sUSDtix are not the same as a fiat stablecoin like USDC or USDT
USDtix is a low-risk, fully-backed stablecoin, which allows it to be redeemed instantly at all times. USDtix does not pass yield through to holders, instead providing users with deep secondary market liquidity across DeFi and CeFi.
sUSDtix is the yield-bearing synthetic dollar backed by venue ticketing agreements. These revenue streams are inherently less liquid than stablecoins, so holders accrue yield for the added risk and withdrawals are also subject to redemption periods.
Yield for sUSDtix is generated through ticketing fees from venues that have received capital advances. Depositors can earn yield without needing to underwrite or originate individual deals. Any idle capital is always held in Treasury Bills as a base yield.
Rather than traditional asset-backed lending, TIX Credit uses revenue-based financing. Advances are recouped through ticket sales, not loan repayments. If sales are slow, the contract extends rather than defaults.
The Cash Flow Problem
Venues face a fundamental cash flow challenge: they must pay artists before selling a single ticket.
TIMELINE OF A SHOW
─────────────────────────────────────────────────────────────────
Day -90 Day -60 Day -30 Day 0 Day +30
│ │ │ │ │
│ │ │ │ │
▼ ▼ ▼ ▼ ▼
BOOK ARTIST PAY DEPOSIT PAY BALANCE SHOW DAY SETTLE
│ │ │ │ │
│ $25K-$500K+ Remaining Tickets Revenue
│ due to artist guarantee scanned received
│
└──────────────────────────────────────────────────────────┘
CASH OUT CASH IN
(Months before show) (After show)
This timing mismatch creates massive working capital needs—venues are constantly floating deposits for future shows while waiting for revenue from past shows. This is the primary reason venues take advances from ticketing platforms.
The Model: Integrator-Based Repayment
Unlike traditional asset-backed lending where you can repossess collateral, TIX Credit secures capital through exclusive ticketing agreements enforced via integrators:
Traditional Lending
TIX Credit Model
Collateral: Physical asset
Collateral: Exclusivity agreement
Default: Repossession
Slow sales: Contract extension
Recovery: Asset auction
Recovery: Extended fee collection
Borrower pays lender
Integrator pays TIX Credit
How Repayment Works
Venue receives advance from TIX Credit
Venue must use a TIX-enabled ticketing platform (called an "integrator")
Integrator charges service fees to fans (integrator sets the rate)
Integrator pays TIX Credit a portion of those fees as repayment
If sales lag projections, contract simply extends
The integrator—not the venue—is the party responsible for paying TIX Credit. This aligns incentives: integrators want venues to sell tickets, and venues need capital to book artists.
How It Works
Contract Structure
Based on real KYD Labs agreements:
Term
Typical Value
Advance Amount
$100K - $1M+
Integrator Required
Must use TIX-enabled ticketing platform
TIX Credit Share
Portion of integrator's service fee
Exclusivity
100% of ticket inventory
Term
Until EITHER (i) 48 months OR (ii) $X million in sales
Payout
95% bi-weekly, 5% held 6 months
Why This Model Works
No Default Risk—Only Extension Risk
Traditional lending has binary outcomes: borrower pays or defaults. TIX Credit has a continuous recoup mechanism:
Good sales → Advance recouped in 12-24 months → Contract completes
