Structure

Profits generated from Kimchi Premium arbitrage accrue to the sELUSD exchange rate.

• Exchange-rate formula: ExchangeRate = TotalELUSD / TotalsELUSD

As profits are realized, TotalELUSD increases, causing the exchange rate to rise gradually. Upon unstaking, users receive ELUSD based on the prevailing exchange rate at that time.

In other words, rewards are auto-settled through an increase in sELUSD’s value—no additional reward token is minted.