Decentralized Autonomous Organization (DAO)

The ELYFI Protocol is governed by a decentralized autonomous organization (DAO), which consists of sELFI token holders. This structure promotes transparency and community-driven decision-making, enabling a more inclusive and efficient platform management process.

ELFI and sELFI Tokens: Governance and Voting Rights

ELFI is the primary governance token of the ELYFI Protocol. By staking ELFI tokens, users can acquire sELFI tokens, which grant participation in the platform's decision-making process. Holders of sELFI tokens can vote on proposals through the Snapshot platform, influencing the platform's direction, upgrades, risk management, and revenue allocation.

Loan Underwriting and Execution Process

ELFI governance, represented by sELFI token holders, plays a crucial role in the loan underwriting process. The typical loan underwriting and execution process involves the following steps:

  1. Create Loan Information: Asset Originators issue RWA tokens and create loan information for a specific pool. They request Elysia Governance to generate an RWA token containing documents and information about the physical asset before loan execution. To initiate a loan review, Asset Originators create the loan information on-chain and submit a proposal to Snapshot, requesting ELFI governance to review the loan.

  2. ELFI Governance Loan Review: Governance participants who own sELFI tokens on Ethereum or BSC verify the loan information proposed by the Asset Originator and vote off-chain for a duration of 1 hour.

  3. On-chain Reflection: After voting, anyone with ELFI tokens as collateral can reflect the off-chain voting results on-chain. If more ELFI tokens are used as collateral, the on-chain results can be changed. This game theory incentivizes ELFI token holders to make choices that benefit the platform. The winner of this challenge can reclaim their deposited ELFI tokens, while the loser cannot. We used SafeSnap: Realty, one of the plugins from Snapshot. Please refer to this link.

  4. Execute the Loan: If the challenge in step 3 is successfully completed, anyone can execute the loan. Upon execution, the RWA NFTs owned by the Asset Originator become part of the pool, and the stablecoins in the pool are sent to the Asset Originator, equivalent to the loan amount.

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