Sourcing and Due Diligence of Receivables

ELYFI Protocol sources its receivables from regulated financial institutions in Korea that are under the supervision of the Korean Financial Services Commission (FSC). The platform focuses on financial products with real estate as the underlying asset to ensure the safety and stability of investments. ELYFI Protocol performs thorough due diligence on the receivables it offers for investment, working with experts who possess nationally recognized real estate certifications.

When investing in the ELYFI Protocol, liquidity providers use stablecoins, which offer protection from the price fluctuations commonly associated with other cryptocurrencies. However, since the underlying assets are denominated in Korean currency, it is important for liquidity providers to be aware of potential exchange rate risks and opportunities.

However, senior tranche liquidity providers receive a fixed percentage return and are not exposed to currency risk, which means their returns remain stable regardless of exchange rate fluctuations.

Equity tranche liquidity providers, on the other hand, experience both the risks and rewards associated with currency fluctuations. For example, if the value of the KRW decreases compared to the stablecoin, equity liquidity providers might face losses. Conversely, if the KRW appreciates, these liquidity providers may see substantial gains.

Coordination with Regulatory Bodies

ELYFI actively cooperates with regulatory bodies like the Korean FSC and other relevant authorities. The platform maintains open lines of communication with these organizations to stay informed about changes in regulations and ensure ongoing compliance.