> For the complete documentation index, see [llms.txt](https://elysia.gitbook.io/elusd/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://elysia.gitbook.io/elusd/how-it-works/end-to-end-flow.md).

# End-to-End Flow

1. **Deposit & Mint**\
   Users deposit USDT to mint ELUSD, then stake it as sELUSD.
2. **Strategy Execution**\
   The protocol automatically runs a Kimchi Premium arbitrage strategy that captures price gaps between the Korean market and global venues, using the deposited assets as its base.
3. **FX Exposure Management (KRW/USD)**\
   FX risk arising during trading is managed through two complementary hedges:
   * Physical/fiat-based hedging (e.g., licensed fintech FX platforms)
   * Futures-based hedging (e.g., futures markets on global exchanges)
4. **AI-Driven Optimization**\
   An AI strategy engine continuously evaluates premium levels, market volatility, and FX trends, and automatically optimizes trade timing and the hedge ratio.
5. **Settlement & Distribution**\
   After settlement, realized profits are distributed on-chain to ELUSD stakers (sELUSD holders).

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