# 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.
