sELUSD
sELUSD is a yield-bearing token minted when you stake ELUSD. It functions as an index token that reflects your pro-rata share of the staked assets and the cumulative return generated by the strategy.
When a user stakes ELUSD, they receive sELUSD of equal initial value. Over time, the sELUSD↔ELUSD exchange rate accretes (rises) to automatically reflect staking rewards (target 18% APY).
Staking
Staking deposits your ELUSD into the protocol to participate in the Kimchi Premium arbitrage strategy; the realized profits are shared with stakers.
Deposit asset
ELUSD
Minted token
sELUSD
Staking fee
None
Staking reward
Target 18% APY
Staking term
No fixed term
At inception, 1 ELUSD = 1 sELUSD. As strategy profits accrue, the sELUSD index (exchange rate) increases. Your token count stays the same, but the exchange rate changes, so on exit you receive more ELUSD per sELUSD.
Unstaking
Unstaking converts your sELUSD back to ELUSD.
The amount of ELUSD you receive is determined by the sELUSD↔ELUSD exchange rate at the time of conversion.
Waiting period: None (instant)
Unstaking fee: None
Conversion formula:
ELUSD_received = sELUSD_amount × ExchangeRate_nowsELUSD_amount: Your sELUSD balanceExchangeRate_now: Current sELUSD → ELUSD rate (reflects cumulative yield)
예시:
sELUSD_amount = 100,ExchangeRate_now = 1.18→ELUSD_received = 118Put simply, with an exchange rate of 1.18, 1 sELUSD redeems for 1.18 ELUSD, representing 18% cumulative yield.
Value Mechanism & Stability
The value of sELUSD accretes over time based on the realized returns from the protocol’s Kimchi Premium arbitrage strategy. The sELUSD↔ELUSD exchange rate acts as an index of cumulative performance: as the protocol performs, the rate rises.
Users crystallize the accrual by unstaking (converting sELUSD back to ELUSD). This structure is conceptually similar to other staking-style synthetic assets (e.g., Ethena’s sUSDe, Falcon Finance’s sUSDf), yet sELUSD is differentiated by its focus on realized arbitrage yields in the Korean market premium.
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