Participants

Participants

ELYFI functions through continual interaction among the various participants. Participants make decisions working remotely in different locations and are paid for their participation in decision making. In order to link the real assets and the blockchain, unlike the existing DeFi platform, ELYFI has a group of participants in charge of actual legal contracts and maintenance.

Participants can be broadly divided into borrowers, investors, and linkage institutions, and these are further divided into sub-elements. ELYFI has structured a ‘logic’ that functions so that by doing the right thing, participants can derive greater benefits than they would be engaging in malicious acts. In the future, the types of participant groups will be diversified and subdivided.

Borrowers

Borrowers are a group of users that take out a loan collateralized by real assets or cryptoassets.

Borrowers who take out crypto asset-backed loans

Borrowers who take out crypto asset-backed loans are users who deposit their crypto assets as collateral and borrow other cryptoassets. A loan is possible in proportion to the deposited collateral value, and the loan interest is paid to the Money Pool. Together with investors, borrowers regulate the supply and demand of the Money Pool.

Borrowers who take out real asset-backed loans

Borrowers who take out real asset-backed loans are a group of users who issue tokens (Asset Bond Tokens, ABTokens) collateralized by asset-backed bonds for asset securitization and then borrow money from the Money Pool. Borrowers can take out a loan by creating real asset-backed bonds and depositing them back into the Money Pool as collateral. The loan limits vary based on real asset values, and there are eligibility requirements depending on the size and type of the real assets. In the case of a loan secured by real assets, there is a set maturity date, and the borrower must pay off the loan and interest within the designated period.

Investors

Investors are a group of users who provide liquidity to the Money Pool and receive interest by depositing crypto assets directly into the Money Pool at ELYFI or by purchasing real asset-backed bonds.

Money Pool Investors

Money Pool investors are a group of users who deposit cryptocurrencies in the Money Pool and provide the Money Pool with liquidity. Investors can receive comprehensive income from multiple bonds deposited in the Money Pool.

Asset-Backed Bond Investors

A group of users who directly invest in Asset Bond Tokens (ABTokens) deposited in the Money Pool can receive interest accruing on specific bonds deposited in the Money Pool. It is also possible to redeem invested bonds in the Money Pool.

Linkage Institutions

Linkage institutions are a group of users who assist in the process of setting up a contract for bonds and play a role in maintaining ELYFI’s security and system.

Collateral Service Providers

Collateral service providers are a group of users who sign a collateral contract with a borrower who takes out a real asset-backed loan and borrows cryptocurrencies from the Money Pool based on this contract. They issue ABTokens containing the content of the collateral contract, entrust them to the Money Pool as collateral, and borrow cryptocurrencies. They gain interest and brokerage fees incurred in this process.

A collateral service provider wishing to participate in ELYFI must have an appropriate license and sound financial standing. Anyone satisfying these criteria can participate in the process of issuing ABTokens and receiving rewards. However, a collateral service provider that performs actions that may adversely affect the system or whose financial standing is inadequate may be monitored and sanctioned by the Governance.

NPL Management Ltd

The NPL Management Ltd is a corporation that recovers non-performing debt securities or loans with a repayment failure status. In the liquidation process, due to repayment failure, the collateral contract becomes non-performing, and ABTokens can be acquired at a low price and sold to the market to earn profits. When signing a collateral contract, it is possible to develop bonds through a pre-contract at a lower price than the general acquisition price. When repayment fails, assets are liquidated, providing Money Pool liquidity.

Legal Service Provider

The legal service provider is a corporation that provides legal services such as document review in the context of legal proceedings, consulting, and the provision of documents necessary in the process of taking out loans secured by real assets, and which receives fees, such as consulting fees, from participants according to the type of services provided.

Liquidation Participants

Liquidation participants are a group of users that execute the liquidation process for collateral in the form of cryptoassets to reduce the liquidity risk of the Money Pool. See “Liquidation” for details.

Participants in ELYFI Development

Participants in ELYFI development are a group of users who offer feedback and provide technologies to assist in the development of ELYFI. Developers from all over the world can participate in this and receive rewards for their roles.