Distribution
Last updated
Last updated
RWA Distribution refers to the use of various financial services based on RWAs issued through the tokenization process. The distribution channels primarily include ELYFI, OpenSea, and Element, where financial services such as purchasing, selling, and collateral loans are available.
The reason for the existence of RWAs is not merely in their issuance, but in the utility that arises when the issued tokens are utilized in the virtual asset financial market. RWAs can be used in platforms like DeFi and open markets within decentralized applications (dApps), becoming the main channels for RWA distribution. By being used as collateral or for buying/selling in these dApps, RWAs enable the trading of real-world assets within the virtual asset financial market.
The distribution process of RWAs varies slightly depending on the distribution channel and form. Among them, the collateral loan process for RWAs in ELYFI, a prominent RWA distribution channel, is as follows:
The primary service offered by ELYFI is a lending protocol that provides virtual asset loans using RWAs as collateral to real-world asset owners. If a real-world asset owner wishes to obtain a loan using RWA as collateral, they must pass the review of ELYFI governance. Once approved, they can receive loans in stablecoins or other virtual assets.
Loan Review Request
The real-world asset owner requests a loan review from ELYFI DAO using the RWA issued through the tokenization solution. The request includes several RWA details (token ID, issuing network, real-world asset information, etc.).
RWA Verification and Voting
ELYFI DAO verifies the request and RWA information, followed by a voting process. Voting is conducted on the ELYFI DAO Governance Platform. Voting rights are granted to users who have staked their ELFI governance tokens to obtain sELFI (staked ELFI), and they can exercise voting rights according to the number of sELFI held.
Loan Approval
ELYFI DAO signs the RWA that has passed the vote. Only RWAs with this signature can be used as collateral in the ELYFI money pool.
Receipt of Loan Amount
The real-world asset owner transfers the signed RWA to the ELYFI money pool as collateral and simultaneously receives the loan amount in stablecoins or other virtual assets.
ELYFI is one of the main RWA DeFis in the ELYSIA ecosystem. RWAs issued by the ELYSIA Protocol are used as collateral for loans in ELYFI. ELYFI's money pool, containing the loan amounts, is deployed on the Ethereum and BSC networks. It also allows for loans in USDT, USDC, DAI, and BUSD. Since its opening in 2021, 86 RWAs have been used as collateral, generating loans amounting to $1,160,531.
ELYFI supports dApps that allow real world asset owners to distribute RWAs through various channels. Notably, it offers the ELYFI Open Market service, a DeFi where real world asset owners can directly sell RWAs, and anyone can purchase them.
ELYFI V2 was launched in April 2023. This version introduces a new tranche structure and develops a P2P open market where participants can freely trade deposited tokens.
In ELYFI V2, RWAs issued by ELYSIA continue to be used as collateral for loans.
The tranche structure means organizing the same asset with different risks and returns. ELYSIA’s tranche structure is divided into 'Senior Tranche' and 'Equity Tranche.' The Senior Tranche offers lower returns but higher safety, while the Equity Tranche offers higher returns but lower safety. ELYFI V2 thus broadens the range of choices for participants, allowing them to take different positions in the same asset according to their preferences.
The P2P open market is a space where participants can trade deposited tokens. Deposited tokens are certificates that allow you to take back your principal and the profits generated in the ELYFI pool later. The ELYFI pool has a maturity period, and therefore, withdrawal in the middle is not possible. ELYSIA designed and developed the P2P open market to resolve the liquidity issues of participants, enabling them to monetize their deposited tokens even before maturity.
