Tokens

ELYFI issues and destroys various types of tokens. Tokens represent the status of participants at a point in time.

ABToken (Asset Bond Token)

Borrowers issue ABTokens linked to bonds after creating real asset-backed loans by entrusting their real assets as collateral to a collateral service provider.

ABTokens are based on the ERC721 standard developed for non-fungible tokens, and issued after executing various real-world legal and administrative procedures and contracts. Through the issuance of ABTokens, borrowers can tokenize real assets, and in this way, it is possible to conduct financial activities that link real assets and cryptoassets.

Collateral service providers can deposit ABTokens issued in the Money Pool and take out a loan. Loans are determined based on the value of the ABTokens issued by the collateral service providers. As soon as the tokens are deposited in the Money Pool and loans are taken out, the tokens are locked. The ABTokens can be unlocked only when the loans and interest are settled normally. The collateral can be reclaimed by redeeming the ABTokens with the collateral service providers. After undergoing the process to seize the collateral, the ABTokens are destroyed at the same time as the loans are terminated.

AToken (Asset Token)

By depositing ABTokens in the Pool and locking them, investors can directly invest in the ABTokens deposited as collateral and receive interest accruing from the ABTokens.

In such cases, securitized ATokens are issued to indicate that the investors have invested in asset-backed bonds. The investors can invest, redeem, and receive rewards for a single bond, interacting with ATokens. ATokens also refer to the amount invested in ABTokens by investors. From the moment the investors come into possession of ATokens, the interest rewards incurring from the ATokens are recorded. The compound interest is calculated by block, and the owner of the ATokens can receive rewards at any time they wish.

ATokens cannot be issued for more than the value of the ABTokens and are destroyed upon maturity. ATokens have adopted the ERC20 standard.

LToken (Loan Token)

Money Pool investors can deposit certain cryptoassets in the Money Pool and receive interest that is proportional to those assets. When Money Pool investors deposit cryptoassets, they receive LTokens equivalent to the deposit amount. LTokens are backed by cryptoassets deposited in the Money Pool in a 1:1 ratio. Owners of LTokens can destroy the tokens whenever they wish, and seize cryptoassets equivalent to that amount. LTokens are the basis for repayment of loans and interest on their investments. They can also borrow other types of tokens through LTokens.

LTokens comply with the ERC20 token standard. When Money Pool investors deposit or withdraw assets from the Money Pool Contract, the Smart Contract automatically issues or destroys LTokens accordingly.

LToken Interest Index

​$LI(t)$is an indicator of interest occurring and accrued to liquidity providers who have provided liquidity to the Money Pool. $LI(t)$is calculated every time user activities occur in the Money Pool, such as loans and repayments by Money Pool participants. The calculation at a point of time, “t”, is as follows:

$$LI(t) = (LR(t)*\Delta T+1)LI(t-1), \\ \\ LI(0)=1 ray=10^{27}$$

Implicit LToken Balance

When investors deposit or withdraw cryptocurrencies, the corrected LToken Balance calculated based on $LI(t)$is saved in the LToken Contract. When User “$x$” supplies or retrieves liquidity “$m$” at ”$t$”, the corrected LToken balance $ILB(x, t)$ is calculated as follows:

In the case of liquidity supply

$$ILB(x, t)=ILB(x, t-1)+\frac{m}{LI(t)}~$$

In the case of liquidity recovery ​

$$ILB(x, t)=ILB(x, t-1)-\frac{m}{LI(t)}~$$

The LToken balance calculated as the balance corrected by is as follows:

$$LB(x, t)=ILB(x, t)*LI(t)$$

Example

Current ETH Money Pool Supply Correction Factor = 1.1, and User “$x$” has deposited 100 ETH. At this time,

• $ILB(x, t-1)=\frac{100}{1.1}=90.91$

• A few months later, $LI(t)=1.2$

• $LB(x,t)=\frac{100}{1.1}*1.2=109.1$

User “$x$” has deposited 100eth, but the user can hold 109.1 LTokens, in which interest of 9.1 ETH has been added by increased supply correction factors, and redeems 109.1 ETH equivalent to the tokens. Upon redemption, the LTokens are destroyed, and the corresponding cryptoassets are transferred to the wallet of User “A”.

DToken (Debt Token)

When borrowers borrow cryptocurrencies with real assets or cryptoassets as collateral, DTokens are issued and transmitted to the relevant deposit address. DToken is an indicator of how much debt the corresponding address has. It also represents the cryptocurrency units that need to be deposited in order to unlock the assets deposited in the Money Pool.

DTokens comply with the ERC20 token standard, but as it is part of the tokenization strategy used to indicate borrowing status, there are restrictions on transmission. When borrowers deposit cryptocurrencies received as a loan in the Money Pool, DTokens are automatically destroyed when the debt is repaid. As loan interest accumulates, the DToken balance sheet total continues to increase.

Cryptocurrency Collateralized Debt Token

Borrowers’ debts are expressed in DTokens. The DToken balance is equal to the amount of borrowed cryptoassets (cryptocurrency). As time passes after creation of a loan and interest on the loan accrues, the DToken balance increases.

Cryptocurrency Collateralized Debt Token Interest Index

​$DI(t)$ is an indicator representing the accumulated interest occurring and accruing from a crypto asset-backed loan from the Money Pool. It reflects the variable interest rate that changes in real time. $DI(t)$ is updated whenever user activities occur in the Money Pool, such as loans and repayments of Money Pool participants. It is calculated at the point in time, “t”, when user activities take place, as follows:

$$DI(t) = (\frac{BR_C(t)}{T_{year}}+1)^{\Delta T}DI(t-1), \\ \\ DI(0)=1 ray=10^{27}$$

Implicit Cryptocurrency Collateralized DToken Balance

When a cryptocurrency-backed loan occurs, the “Cryptocurrency Collateralized DToken balance”, which has been calculated and corrected based on DI(t)DI(t), is saved in the “DToken Contract”. When User “$x$” pays off or takes out “$m$” loan at the point in time “$t$”, the corrected “Cryptocurrency Collateralized DToken balance $IDB_C(x, t)$ is calculated as follows:

Loan

$$IDB_C(x, t)=IDB(x, t-1)+\frac{m}{DI(t)}~$$

Repayment

$$IDB_C(x, t)=IDB(x, t-1)-\frac{m}{DI(t)}~$$

The DToken balance calculated as the corrected “Variable Cryptocurrency Collateralized DToken” balance is as follows:

$$DB_C(x, t)=IDB_C(x, t)*DI(t)$$

Real Asset Collateralized Debt Token

In the case of real asset-backed loans, interest rates are fixed, and do not vary according to Money Pool circumstances. This allows borrowers to take out stable and predictable real asset-backed loans.

When $\Delta T$ has passed after User “$x$ ” pays off or takes out " $m$” loan at the point in time “$t-1$”, the Real Asset Collateralized DToken balance $DB_R(x, t)$ is calculated as follows:

$$DB_R(x,t)=m*((\frac{BR_R(t-1)}{T_{year}}+1)^{\Delta T}$$