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).