ELYSIA is a decentralized platform for tokenizing real estate assets, enabling trading, lending, and borrowing of tokenized property using blockchain.

In today’s financial landscape, the connection between traditional financial assets and the world of cryptocurrencies is becoming increasingly seamless. This convergence is particularly evident with Real-World Assets (RWAs), which allow physical assets to be tokenized and traded on blockchain platforms. This integration offers new opportunities for liquidity, investment, and financial inclusion. ELYSIA exemplifies this trend by enabling the tokenization of real estate assets, bridging the gap between conventional finance and the landscape of digital currencies.

What is ELYSIA (EL)?

ELYISA, founded by Donguk Seo, Jung-gun Lim, and Won-jun Cha in July 2018, aims to bridge traditional financial assets with the world of cryptocurrencies by digitizing real-world assets (RWAs) using blockchain. This integration allows physical assets like buildings or company shares to be converted into digital tokens that can be traded within the crypto financial system.

The protocol has achieved several milestones, starting with the ELYFI release on July 15, 2021, which provided DeFi services based on RWAs. On November 4, 2021, ELYSIA introduced an on-chain governance system to enhance ELYFI’s decentralization.

In 2022, ELYSIA expanded its reach by listing EL tokens on major exchanges. The launch of the ELYFI US Real Estate Product on July 21, 2022, marked a significant step in utilizing the US real estate market, followed by a listing on Coinbase Custody on September 17, 2022. The token economy underwent improvements on November 14, 2022, to strengthen decentralization and increase token value.

In 2023, ELYSIA continued its growth with notable partnerships and product launches. The introduction of the Klaytn Network on July 25, 2023, and the partnership with the Klaytn Foundation aimed to boost the RWA ecosystem. ELYSIA also launched the first virtual property project, ELYLAND, on August 7, 2023. The platform opened an ELYFI U.S. Treasury Bond Pool on September 4, 2023, considered one of the safest asset classes.

On November 8, 2023, the platform further developed an insurance pool dashboard, enhancing the stability of the ecosystem by transferring 12,000,000 EL to the Insurance Pool. Finally, ELYSIA ventured into new markets like Vietnam, Thailand, and Nigeria, showing significant user acquisition on November 28, 2023.

How Does ELYSIA Work? Tokenization Protocol and Elyfi 2.0

The ELYSIA Tokenization Protocol is designed to bridge traditional financial markets and the crypto financial ecosystem by converting real-world assets (RWAs) into digital tokens. These RWA tokens are key to integrating real assets with blockchain technology, making them accessible in decentralized finance (DeFi) applications and online marketplaces. The process ensures that digital representations of physical assets retain their value and are legally recognized.

RWA tokens represent ownership or rights to real assets, such as property, wine vouchers, or luxury goods. They contain detailed information about the underlying assets and are legally guaranteed. The tokenization process begins with asset owners requesting RWA tokens through a specialized app. This request is then reviewed and voted on by an online Decentralized Autonomous Organization (DAO). If approved, the offline DAO, ELYSIA DAO LLC, generates the RWA tokens, which can be traded or used as collateral in lending protocols.

One of the main challenges of tokenizing real-world assets is determining legal ownership. ELYSIA addresses this by using a DAO corporate entity structure recognized in jurisdictions like Wyoming, Tennessee, and the Marshall Islands. This allows the DAO to legally own the assets and issue RWA tokens, ensuring legal compliance and decentralized management.

The ELYSIA Tokenization Protocol divides the process into four main parts: creation, distribution, settlement, and oracle (data feed). Each part is interlinked with established rules to ensure the secure and effective operation of the decentralized system. The protocol is designed to work seamlessly with various mainnets, offering flexibility and reducing reliance on a single blockchain network.

For assets with a registration system, such as real estate, ELYSIA focuses on converting them into financial products to avoid the need for registration changes. This approach simplifies the process and allows for the tokenization of complex assets like apartment mortgages and principal and interest receivables in Korea and the USA.

By leveraging blockchain technology, ELYSIA aims to bring transparency to property transactions, recording them immutably on a decentralized ledger. This enhances trust between parties and reduces the possibility of fraud. The protocol’s compatibility with multiple mainnets ensures user convenience and manages risks associated with any blockchain network.

As ELYSIA continues to develop its ecosystem, integrating real-world assets into the blockchain will pave the way for Elyfi 2.0. This DeFi platform capitalizes on tokenized real-world assets, offering new financial opportunities and enhancing the overall utility of the blockchain. Elyfi 2.0 aims to revolutionize the DeFi landscape by leveraging the value and stability of real-world assets.

Source: elysia whitepaper

Elyfi 2.0

Elyfi 2.0 significantly advances decentralized finance (DeFi) by incorporating real-world assets (RWAs) into the crypto ecosystem. The platform aims to bridge the gap between traditional finance and blockchain-based solutions, creating a robust financial system where diverse RWAs can be traded seamlessly. Elyfi provides a comprehensive financial ecosystem for tokenized real-world assets, enabling users to unlock and earn real-world value.

Elyfi 2.0 allows users to diversify their crypto portfolios by investing in pools based on tokenized RWAs, which mitigates the volatility commonly associated with cryptocurrency markets. Users can supply crypto or borrow using real-world assets as collateral. Once loans are repaid, users earn interest, offering tangible returns. This innovative approach leverages blockchain technology to provide transparency and traceability of funds, with all transactions recorded on the blockchain for easy verification.

The platform supports a tranche structure, empowering users to choose between stable returns from a senior pool or higher returns from an equity pool, based on their risk tolerance and investment goals. This flexibility enhances the investment opportunities available to users, making Elyfi a sophisticated DeFi platform that capitalizes on real-world assets.

One of the standout features of Elyfi is its commitment to security and compliance. The protocol has been audited by Certik, a leading blockchain security firm, ensuring a secure and reliable environment for users. Elyfi’s mission is to connect DeFi with real-world assets, providing stability to the on-chain market. By tokenizing assets like residential real estate and e-commerce receivables, Elyfi aims to improve liquidity, profitability, and safety in the DeFi space.

Since its launch in 2021, Elyfi has successfully operated a diverse range of investment products. The platform has facilitated numerous loans, totaling significant investments. Elyfi Protocol’s goal is to lower the barrier to entry for both borrowers and liquidity providers, making the investment process more efficient and accessible.

Elyfi 2.0 is set to revolutionize the DeFi landscape by offering a secure, transparent, and efficient platform for trading tokenized real-world assets. As it continues to expand and innovate, Elyfi is poised to become a cornerstone of the DeFi ecosystem, providing users with unparalleled opportunities to earn and invest in the digital and real-world economies.

Source: elysia.lan

ELYSIA Use Cases

ELYSIA leverages blockchain technology to bridge the gap between traditional finance and the crypto market, enabling the tokenization of real-world assets (RWAs). This innovative approach offers numerous practical applications, enhancing accessibility, transparency, and liquidity in various sectors.

• Real Estate Tokenization: ELYSIA enables the tokenization of real estate assets through smart contracts, dividing properties into fractional ownership units represented by tokens. This allows for more liquidity and flexibility in buying, selling, and trading real estate assets. Property transactions are immutably recorded on a decentralized ledger, increasing transparency and reducing fraud.
• Insurance Pool Dashboard: ELYSIA creates an insurance pool dashboard that allows easy visibility of the insurance pool. This pool accumulates screening labor costs every time an RWA token is generated through the ELYSIA protocol. It strengthens the stability of the ELYSIA ecosystem, ensuring that the platform can handle various risks effectively.
• E-commerce Receivables Pool: The platform supports the tokenization of e-commerce receivables, allowing businesses to convert their accounts receivable into tradeable tokens. This provides immediate liquidity for businesses and opens up new investment opportunities for crypto investors, enhancing enterprises’ cash flow and operational efficiency.

ELYSIA’s innovative use cases demonstrate its potential to revolutionize the financial landscape by integrating real-world assets with blockchain technology. By enhancing liquidity, transparency, and accessibility, ELYSIA is paving the way for a more efficient and inclusive financial ecosystem. As the platform continues to evolve, it is expected to unlock even more opportunities across various sectors, making real-world assets more accessible and tradable for a global audience.

What is the EL Coin?

EL is ELYSIA’s native utility token, used for governance and transaction fees. Its maximum supply is capped at 7 billion units, of which 4.01 billion (57.30%) are already in circulation (June 2024).

The EL token is designed to facilitate various functions within the platform. One of its primary uses is governance, allowing holders to participate in decision-making processes through staking. When users stake their EL tokens, they receive sEL (staked EL) tokens, which grant them voting rights on platform policies and RWA (Real World Assets) token creation.

Additionally, EL token holders can earn governance participation rewards. These rewards come from the screening labor fees paid by asset owners who wish to tokenize their real-world assets. The fees are collected by the offline DAO and distributed to sEL holders based on their participation in reviewing proposals for new RWA tokens.

The EL token also plays a crucial role in maintaining the platform’s security and integrity. Part of the screening labor fee is allocated to an insurance pool, which acts as a safety net for any issues arising from the tokenization process. This pool ensures that any potential damages or problems are adequately compensated, maintaining trust and reliability within the ecosystem.

Source: elysia whitepaper

Moreover, EL tokens are used to incentivize various stakeholders, including Oracle nodes, legal teams, and appraisal companies, ensuring accurate and regular evaluation of tokenized assets. This comprehensive approach to governance, security, and incentivization highlights the multifaceted utility of the EL token within the ELYSIA platform.

ELYSIA Main Features

ELYSIA provides a comprehensive platform for tokenizing real-world assets (RWA) and integrating them with blockchain technology. This process is governed by online and offline DAOs, linking real assets to the decentralized ecosystem.

DAO

The ELYSIA Protocol employs a dual DAO structure. Online DAOs consist of general voters who stake EL tokens (sEL) to gain voting rights. They vote on the issuance of new RWA tokens, setting policies, and confirming data accuracy. Participants are rewarded with a portion of the screening labor fee if the RWA tokens reach their end date without issues. Offline DAOs, comprising sEL holders, executives, and representatives, handle real-world paperwork and ensure the implementation of decisions made by the online DAO, thereby linking the decentralized decisions to real asset management.

Source: elysia whitepaper

Linking Body

This group maintains the security and functionality of the ELYSIA ecosystem, participating in core components like issuance, distribution, liquidation, and price oracles. Oracle nodes provide real-world asset prices to the protocol, facilitating accurate RWA token operations. Bond purchasers acquire non-performing loans and can profit from selling RWA tokens. Law firms, accounting/tax firms, and appraisal firms offer legal and consulting services, ensuring compliance and accurate valuation. Liquidation participants execute collateral liquidation to mitigate liquidity risks, safeguarding the ecosystem’s stability.

Portfolio Structure

The ELYFI Protocol organizes assets into multiple portfolios, each managed by an Asset Originator who can borrow cryptocurrencies. Portfolios undergo various states: funding, funded, live, stopped, senior closed, and closed. These states determine the availability of loans, repayment progress, and withdrawal rights of depositors. Each portfolio has a cap based on the Asset Originator’s reputation and trustworthiness, ensuring controlled asset accumulation. Portfolios’ dynamic state changes ensure that the platform adapts to market conditions and maintains stability for investors.

ELYSIA seamlessly connects real-world assets with blockchain technology, providing a robust and secure environment for asset tokenization and financial integration. This structure enhances transparency, reduces risks, and opens new opportunities for asset owners and investors.

Is EL a Good Investment?

The tokenization of real-world assets (RWA) is poised to be a significant trend in the blockchain space, positioning ELYSIA well for future growth. ELYSIA taps into a promising market by enabling the seamless integration of traditional assets into the crypto ecosystem. However, the platform faces stiff competition from other, more advanced platforms already excelling in this domain. While ELYSIA’s innovative approach holds potential, its success will depend on its ability to differentiate itself and adapt in an increasingly competitive landscape.

How to Own EL?

To own EL, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account and get it verified and funded. Then, you are ready to go through the steps to buy EL.

News on ELYSIA

According to what was announced on the official blog of Elysia in May 2024, the ELYSIA team has unveiled the development of CRX, an RWA Perp DEX. CRX addresses regulatory uncertainties, challenges with RWA oracles, and issues like exchange rate fluctuations and the Kimchi premium. CRX offers a perpetual futures exchange for trading real-world asset indexes, enhancing the ELYSIA ecosystem. With CRX, ELYSIA now provides comprehensive RWA solutions: tokenization via ELYSIA, liquidation through ELYFI, and futures trading with CRX.

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