> 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/introduction/what-is-elusd.md).

# What is ELUSD?

**ELUSD** is ELYSIA’s new synthetic dollar. By depositing U.S. dollar stablecoins (e.g., USDT) you can mint ELUSD; if you stake it to mint **sELUSD**, you receive a periodic share of protocol revenue as yield.

<figure><img src="https://1968746292-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FNZ02NcOSIuVHL3dPqtaN%2Fuploads%2Fc8Ts60QLwTdYvCwSFWhm%2Fdoc_02.png?alt=media&amp;token=ada5a237-d42f-4047-bddc-2b7f14c670fc" alt=""><figcaption></figcaption></figure>

### Revenue Strategy

The protocol currently generates revenue through a repeatable arbitrage strategy that captures price discrepancies for the same coin across exchanges in different countries.

* When the local premium is high, the strategy sells the coin(USDT), converts the proceeds to KRW, then exchanges KRW back to USD and holds the USD.
* When the premium is low (or there is a discount), the strategy converts USD to KRW and repurchases the coin(USDT).

By iterating this cycle, the protocol realizes returns from cross-market inefficiencies.

<figure><img src="https://1968746292-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FNZ02NcOSIuVHL3dPqtaN%2Fuploads%2FpNHuEmbDsThm57K8kKxn%2Fdoc_03.png?alt=media&amp;token=024f2d77-0981-43cf-974d-338269e2b5fd" alt=""><figcaption></figcaption></figure>

### Distribution & Reserves

A portion of arbitrage profits is allocated to reserves, and the remainder is periodically distributed to sELUSD holders.

### Value Proposition

This design delivers more than simple deposit yield, positioning ELUSD as an income-generating stable asset within the ELYSIA ecosystem.