Elysia is a decentralized autonomous organization (DAO) established to facilitate the technological and incentivized transformation of tangible assets into digital forms. It is a global endeavor that leverages blockchain technology for the tokenization of real-world assets, aiming to provide a novel service in this domain.^[1][2][3]

Overview

Elysia, founded in July 2018 by Donguk Seo, Jung-gun Lim, Yoon Kim, and Won-jun Cha, specializes in the tokenization of real-world assets, including real estate, accounts receivable, and US Treasury, converting them into digital assets. The ELYFI platform is dedicated to digital asset securitization, with a vision to establish a decentralized finance ecosystem. Elysia Protocol manages minting fees and features a staking program. Elysia DAO utilizes Ethereum smart contracts to tokenize real estate assets, granting ownership rights and facilitating secondary market trading.^[4][3]

Solution

Elysia DAO introduces protocol standards for transferring real estate assets to Ethereum and other public blockchains, emphasizing tokenization and trading. Asset value preservation is achieved through legal incorporation or systematic strategic mechanisms.
The Elysia protocol defines governance structures and rules for digitized assets, categorizing them into issuance, distribution, liquidation, and oracle components. Moreover, it aims to encourage the use of multiple blockchain networks to enhance user flexibility and mitigate reliance on a single mainnet.^[5]

Participants

In Elysia's ecosystem, Token Issuers, often property owners seeking to digitize their real estate, require approval from the governance body, which provides guidelines for various asset tokens. Offline Governance, represented by real estate facilitators and selected representatives, manages asset token approval. Online Governance, composed of active participants and delegations, reviews and sanctions tokens and votes on protocol policies. Developer Groups contribute to the protocol's development globally and are rewarded for their roles. Agencies, integral to core protocol components, receive fixed fees. Oracle Nodes supply vital real-world asset prices. Bond Buyers refinance property bond-type tokens, offering reduced acquisition prices in case of non-redemption. Law Firms provide legal services and are compensated based on the service. Debt Collectors (Liquidators) monitor real estate and token prices to reduce liquidity risk.^[6]

Elyfi

ELYFI Protocol, launched on January 15, 2021, serves as a DeFi platform bridging TradFi and blockchain finance. It tokenizes assets like real estate and e-commerce receivables, offering borrowers access to asset-backed loans and enabling liquidity providers to earn in a secure environment. Its mission is to unite DeFi with real-world assets for stability and accessibility, governed by a decentralized community of token holders. Since its inception in 2021, ELYFI has provided diverse investment products, including 82 real estate loans, facilitating $8,267,391 in investments between Q3 2021 and Q1 2023.^[7][8]

Tokenomics

ELYSIA Protocol introduces minting fees collected from token issuers, subject to potential alterations approved by Active Participants. These fees are divided into asset bond-type token generation fees and asset derivative-type token generation fees. The former applies during the conversion of real assets into asset bond tokens, which serve as collateral for DeFi loans. The latter is levied when creating price-synthesized tokens mirroring real-world asset prices for trading on DeFi Exchanges.
The distribution of Elysia's tokens is categorized as follows:

• Marketing: Constituting 7% of the total token supply.
• Bonus: Comprising 8% of the overall token distribution.
• Reserve: Accounting for 8% of the token allocation.
• Team: Allocating 10% of the total tokens to the project team.
• Partnership: Reserved for partnerships, this category constitutes 10% of the token distribution.
• Investors: Representing the majority share, 57% of the tokens are allocated to investors.^[9][10][18]

Elysia (EL) Token

EL tokens serve as fees for AToken issuance through EL Bridge, while staked EL tokens provide voting rights in online governance. sEL holders can vote on the creation of RWA tokens after reviewing relevant documents, earning screening labor fees from the real asset owner. ELYSIA tokens represent ownership in ELYSIA DAO LLC and are tradable on DEX and CEX, aiming to enable widespread participation in governance.^[11][9][12]

Elyfi (ELFI) Token

ELFI serves as the principal governance token within the ELYFI Protocol. Users can stake ELFI tokens to obtain sELFI tokens, enabling participation in the platform's decision-making procedures. Holders of sELFI tokens can exercise their voting rights via the Snapshot platform, which impacts the platform's direction, upgrades, risk management, and revenue allocation.^[13]

RWA Tokenization

The "RWA token" acts as a bridge between traditional financial markets and the crypto sphere. These tokens encapsulate essential details about tangible assets and their rights, all backed by legal assurance. RWA tokens can be generated for various assets, including wine or accommodation vouchers, art copyrights, and ownership of used luxury items.
Tokenization is the process of connecting real-world assets to the blockchain, enabling their use in decentralized applications like DeFi and marketplaces. Elysia facilitates this process by allowing asset owners to request RWA token issuance through a tokenized Dapp. The issuance involves online and offline DAOs, asset verification, and voting. Successful voting leads to the transfer of asset ownership to the DAO, resulting in the creation of RWA tokens. These tokens represent control over the assets and can be traded or used as collateral in lending protocols.^[14]

EL Bridge

EL Bridge is a real-world asset tokenizer developed within the framework of the ELYSIA protocol. It enables users to tokenize the assets owned by participants. Technically, EL Bridge operates as a smart contract that issues tokens based on the input real asset information. Presently, it is deployed on both the Ethereum Mainnet and Binance Smart Chain. As of June 16, 2022 KST, EL Bridge has facilitated the creation of over 50 real asset tokens, with a combined value of $6.4 million.^[1]

Governance

Elysia DAO governs the conversion of real estate assets into digital assets with a focus on legal effectiveness, decentralization, and fast decision-making. Property owners must establish binding contracts with the offline governance group, obliging property transfer upon token redemption. The process employs both online delegation and the offline governance group, with decisions subject to override by voting participants. Elected members are accountable, having made a deposit^[11][15]

Online Governance

Elysia's governance involves online governance, categorized into active participants and delegates.
Active Participants can vote by holding EL tokens, where the number of tokens held corresponds to their voting power. They propose, vote on new real estate tokens, make policy decisions, approve issuers, and verify property information. They earn rewards from staking and mining revenue, totaling 25% of the protocol revenue.
Online Delegates must deposit EL tokens into the community pool and secure majority votes from Active Participants. They validate and approve real estate tokens, earning 15% of the protocol revenue from staking and mining. They also have obligations to address flaws in asset token data by burning EL tokens and meet minimum deposit requirements to maintain their position.^[16]

Offline Governance

Elysia's governance consists of two key roles: Facilitators and Representatives.
Facilitators are required to meet specific criteria, including EL token deposits, KYC verification, and election by Active participants. They validate data, issue real estate tokens, and form legal agreements. Their compensation includes staking revenue (8% of protocol revenue) and mining revenue. Failure to comply with decisions by Active Participants may lead to permanent EL token burns. Insufficient deposit levels result in disqualification, triggering a new election.
Representatives share similar requirements with Facilitators, engaging in data validation, token issuance, and legal representation. They earn 2% of protocol revenue as staking revenue and mining revenue. Non-compliance may result in EL token burns and disqualification due to inadequate deposit levels. Successor criteria are based on EL deposits and will.^[17]