# Yield Source

ELUSD’s yield is derived from the Kimchi Premium (**KIMP**)  between the Korean and global crypto markets.

An automated trading engine repeatedly executes the following strategies across premium regimes to capture structural arbitrage:

1. When the KIMP is low → Sell USD / Buy USDT
2. When the KIMP is high → Sell USDT / Buy USD

<figure><img src="https://1968746292-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FNZ02NcOSIuVHL3dPqtaN%2Fuploads%2Fr18JYbnti29Tl8oeW0LA%2Fdoc_07.png?alt=media&#x26;token=49daab90-fc4d-4b2f-9682-21276194107f" alt=""><figcaption></figcaption></figure>

Realized profits are aggregated on-chain and credited to the ELUSD staking pool, which is reflected as an increase in the sELUSD exchange rate over time.
